It has been a calm April for the stock of Dune Energy Inc.(OTC:DUNR) – no trading frenzies, a price gravitating around $0.8 per share, and a new Chairman. The first week of May, however, could be different. This Thursday, Dune has the possibility to push the stock price above $1 if the right catalyst is in place.Â
It has already begun. Yesterday, more than 1.2 million shares exchanged hands on the market, but surprising or not, this had little effect on the stock price, the session closing at $0.82 per share. Indeed, it is possible thatÂ high tradingÂ volumes continue to appear on the market throughout the week as the most interesting sessions would no doubt be the Thursday and the Friday ones. On Thursday, an earnings announcement is expected and regardless of what the data presented would be, the hype on the market could take significant proportions.
Dune Energy is not under the habit of delaying reports and filings, which means most traders are confident that whatever happens it is indeed happening this week. Yet, there are other issues at hand which do not exactly inspire confidence in this company, the financial condition of the company being one of them. While there are cash and revenues at hand increasing on an annual basis, there are also liabilities which already top $300 million and should not go overlooked. Let alone, the net loss for 2010, according to the 10-K statement, amounts to more than $70 million. [BANNER]
Unlike other pennyÂ stock enterprises, Dune does not pray on the turmoil in Libya, Egypt and other oil-exporting countries, it seems that this company relies on pure facts and figures to convince investors and shareholders that there isÂ valueÂ in it.Â Similar to them, however, it is still not able to cope with the mounting liabilities. Which is why this Thursday is an important point. While the results presented would not determine the course of the stock throughout the year, they might indeed have a sound impact on the market throughout May.