TransAmerican Energy Inc. (CVE:TAE) (PINK:TAEGF) added 100% today after one of their neighbors got lucky with the resource estimates.
TAE is like a leech, feeding of their neighbor’s potential and there is nothing more to the current share price action. After Petrolia Inc. (CVE:PEA) (PINK:PTOAF) declared their resource estimates today, TransAmerican also saw a massive increase in share price. The company holds 19,560 acres property on Anticosti Island, which, by most part, is targeted by Petrolia.
On their own, TransAmerican had no news since filling a quarterly report on March 31, 2011. According to the unaudited quarterly statements the company had less than a million in net tangible worth and held a working capital deficit of $593 thousand.
Considering TAE hasn’t officially achieved anything worthwhile since the last time the share price spiked up, it is rather safe to assume the outcome of this rally will be the same as for one in February. Back then the company also shot up on indirect news and traders got burned by a slow but steady decline in share price.
Technically the stock has support at 5 cents per share and somewhat of a weaker one at 7.5. If it falls back to these levels that would still cause 25% and 50% loss for those buying right now.
