Today is exactly a week since WesternZagros Resources Ltd. (CVE:WZR),(PINK:WZGRF) stock revived.
On no company’s news for almost two months, WZR shares were just actively traded in short and long positions.
During yesterday’s trading session, the strong trading volume had not been seen since this spring. WZR closed the session at $0.56 per share, valued by investors three times less than its 52-week high.
The last official information about WesternZagros Resources Ltd. that was able to rush their stock were the announced in August second quarter financial results.
Since then, there were no significant events related to the company’s development. Even the published by OPEC in the beginning of September estimates about the increasing world oil demand this year to 85.51 million barrels per day (mbd ) and to 86.56 mbd in 2011 were not able to rush WZR stock.
The company is still not receiving revenues from operations. As known, WZR operations are related to its interest in a Production Sharing Contract with the Kurdistan Regional Government in respect of an exploration project area in the Kurdistan Region of Iraq.
Looks like these days WZR stock rush resulted not from the fact that China’s crude oil import has increased by 13.3% in August year-over year, but maybe from the speculative interest in WZR shares.[BANNER]
Despite of all said above, it is good to consider some facts when taking the decision to include WZR stock in an investment portfolio. One of them is that within a week and on no news WZR soared 45.45%.
The company’s financials show that at the end of this June WesternZagros Resources Ltd. had no outstanding bank debt or other interest-bearing indebtedness and had $54.2 million in working capital.
