Yesterday, the shares of Timminco Limited (TSE:TIM), (PINK:TIMNF) pushed 18% up on the Toronto Stock Exchange (TSE) on no new announcements and for no apparent reasons. The rise was confirmed by the huge turnover, beating over three times the average for the company.
During the session, TIM climbed to a 5-month high at $0.590 per share which was also the close for the day. As a matter of fact, the stock has been progressing steadily for some time now and has moved up 90% over the last seven weeks. Once again, there is no fresh news to explain the surge. Such was also the case with the many of the previous spikes observed.
The last time TIM gained such a significant value in a day was only two weeks ago when the shares advanced almost 21% on the TSE. On the following morning, the company issued a release in which clarified explicitly that there are not “any corporate developments to account for” such a trading activity in Timminco’s stock. Probably, this is what Timminco has to do in regard to the current rise too.
In the lack of any new company developments and other relevant information, we might suggest that there is probably a speculative interest in the shares, with some investors trying to make quick profits from their bids on TIM.
Company’s fundamentals indicate that it is maybe unlikely to expect a significant rise in the stock price in the near future. The financial reports for the third quarter of 2010 contain figures such as:
- Working capital deficiency of $47.3M;
- A $34.2M net loss for the period and a negative gross profit of $21.6M;
- Just $4.5M in cash and equivalents.
Additionally, we could note that the current market value of Timminco, which is $115M, seems to be a little high compared to the $38M net worth of business.
