WLOCD closed at $0.72 on Friday with a 7.46% increase in its share price. The traded volume exceeded 4.8 million shares and the closing price was yet another subsequent highest value since the stock is traded on the OTC market. The shares have been in the overbought area since the middle of November, but the current price level looks stable as it was gradually reached after the company filed its latest 10-Q report in December and as it did not get disturbed even by the 4-for-1 forward spit.
On the other hand, the potential future, and maybe impressive, fundamentals of Willow Creek may not be the only reason behind the stock’s recent gains. At the end of last week, a stock promoter mentioned the stock in his newsletter as a “momentum alert” and as a gold exploration and development company with “high probability for near term production”. The promoters did not disclose any particular compensation, though it is possible that they are holding shares and will thus profits from any rises in the share price.
Willow will file with a delay the quarter report for the period ended November 2010 and the waiting may be holding the share price as well. Production does not seem so near-term though. The company is yet to explore for viable reserves at the Hercules Property and the Dolly Varden Property in Nevada. Willow Creek acquired the mineral exploration rights for that two new properties at the end of last year. The third property of the company is also far away from getting a profit as only Phase I of the exploration program has been completed by now.
At the end of August last year HRTE had zero cash, but liabilities exceeding $66,000. Although this changed already as the company announced to have raised a total of 500,000 through an unregistered sale of common stock and warrants, the cash looks sufficient only for the short-term. So maybe traders now hope that the first exploration results will get soon on the way.
