Stability just under one dollar – this is the situation on the market for Dune Energy Inc. (OTC:DUNR) and it is soon to change. Not so long ago, traders went mad over the 1000% increase in the price, and this relative peace is the same as the calm and quiet weather before the storm comes.
Considering its level of $0.1 at the end of 2010, it is no wonder why message boards, blogs and financial forums experienced booming activity on this company. As with many other mining companies, once the buzz is over, the crash begins. Fortunately for the stockholders, there was no crash this time and the price currently gravitates around $1 per share.
So what is it that shareholders expect and pray that the company makes public these days? They expect results from drilling operations on the company’s properties, even though real results should be expected not today, next week or next month, but rather by the end of the year. In this aspect, investors step on highly speculative ground when considering the future potential of Dune Energy. [BANNER]
While investors often neglect it, this is the time to mention other important facts about the company that are also in sharp contrast with the positivism that overflows from the Internet. A brief glance at the last 10-Q statement, covering the first three quarters of 2010, would reveal the following:
- total current liabilities of $30 million;
- net loss of $47 million;
- accumulated deficit of $330 million;
Keep the above figures in mind, as they are facts of the present, not subjective predictions for the future. Take a closer look at the same 10-Q document, and you can also extract a noticeable trend. A trend, which resembles the movement of the stock on the market, but in a different direction.Â
