Vast Exploration Inc. (CVE:VST) (PINK:VSTFF) tanked another 8.6% as the stock price approaches pre-rally levels.Trading volume topped 1.77 million, and was to times the average, stressing the importance of this price breakdown. PPS fell below the support at 55 cents and could aim to come back to the previously established narrow trading range at 47 to 52 cents.
The stock also seems to follow the long-term downtrend. With no production and depreciating working capital, the exploration stage company is bound to lose market value until exploration results show some major potential. The market cap is still roughly 1.7 times the net tangible worth – a common valuation for a non-producing development stage business.
Except for the recent appointment of (retired) General John P. Abizaid to the board of directors, the company had no more news. The effect of drilling update wore of as expected, and the appointment of new board member was not promising enough to make an impact, especially in the light of the resignation of Mark Brennan.
Traders are still waiting for the logging and related geological survey results from the Qara Dagh – 1 Exploration Well. Further drilling will commence only after the results were evaluated.
