Stealth Ventures Ltd. (CVE:SLV) (PINK:SLHVF) dropped 20% this morning, eliminating a large portion of the last day’s gains and showing the move was purely accidental.
SLV share price moved up 66.6% yesterday under a trading volume of 2.3 million which was significantly above the average and promised a possible lasting price bounce. With today’s correction it still stayed away from the preceding downtrend, so not all might yet be lost for bulls. The intraday price action remains choppy though, showing comparatively low liquidity and in turn, limited interest from traders.
There was no news that could have caused the previous price increase and attract large trading volumes. The stock simply bounced and there is even no evidence of it going up because of short squeezes. Traders forced it back down today because of the lack of fundamental reasoning behind the previous gap up.
On the other hand, the current market cap of $3.2 million is below their underlying book value of $6.6 million. This discrepancy allows for a theoretical share price increase to at least $0.04. However for an oil and gas company it all comes down to potential, and silence on Stealth Ventures news front currently works against the company.
