Supreme Resources is trying to attract investors’ attention with the current promotional effort. It is still difficult to say how successful the advertising effect will be, having in mind the humble compensation of $4,000 paid to the promoter NanoCap Gems.
Probably, the reason for such a company’s initiative is the recent unsatisfactory performance of the stock. SPR has declined by almost 24% on the Canadian Venture Exchange (CVE) since New Year. This week, the fall has become even more evident. On Monday, the shares lost about 14% of their value and on Tuesday the decay continued.
Yesterday was an exception from this negative move, as the stock managed to progress by 8.3% on the CVE to its present level of $0.130. It is hard to predict where the shares’ price will go now. Although it has been generally falling since New Year, there are several factors that could support a future upward move of the stock.
Several days ago, Supreme Resources announced encouraging results from its four-hole drilling program conducted on the TAS Project located in the Copper Mountain Mining Camp in British Columbia. The news did not seem to have impressed investors at the time it was released. Probably, their reaction will come a bit later.
The rising over the last three months copper price is another positive factor that could favourably influence the behaviour of company’s shares. Some analysts claim that copper will continue to go up in the following years due to the heavy demand.
Last Friday, the company was pleased to inform everybody that it is already fully listed on the OTC Pink Sheets. This is an additional advantage for Supreme which will “broaden” its marketplace, as stated by company’s officials.
Nevertheless, it is very risky to forecast a rise of the share price in the future. Supreme is financially fragile. At the end of last September, it reported working capital deficiency of $55K and almost no cash on hand. Besides, the effect of the mentioned promotion will probably quickly fade away.
