Malbex_-_Chart_-_12_May_2011.jpgThe stock of Malbex Resources Inc. (CVE:MBG), (PINK:MXRSF) went crazy. In the good sense of this word. Two great company releases made the shares jump up from excitement, especially in terms of trading activity.

More than 7.1M shares traded. This is serious, not something to be overlooked. MBG opened with a gap up. However, it filled quite quickly during the session. The waning buying pressure led to the formation of a black candlestick. In the end, MBG closed at $0.42, still gaining 2.44% from the previous close. Of course, the price movement is nothing compared to the volume performance.

The investors’ attention was provoked by yesterday’s announcement where Malbex reported promising results from the drilling program on its Del Carmen gold-silver project. In the beginning of the week, the company completed a $15M public offering, gaining additional financial strength.

9Malbex_Res_-_Logo.pngProbably, the two announcements created some bullish energy that drove the stock upward. It seems, however, that the energy has exhausted as fast as it has been formed.

Besides, Malbex has no revenues and continues to incur losses from its operations. The negative income for the last quarter of 2010 was $2.6M. This is normal, as the company is still in the development stage.

Nevertheless, we can never be positive about a flourishing Malbex future, unless the company enters the production phase soon.