Is The Stock of Far East Energy Corp (OTCMKTS:FEEC) Going to Make Up for Yesterday
We spoke about the relentless upwards movement of Far East Energy Corp (OTCMKTS:FEEC)’s stock yesterday, but will it continue to go in the direction that it is headed.
FEEC registered a day in the red in yesterday’s trade session, however, they didn’t drop that much. Their stock went down 3.77% on a decent volume of 3.2 million traded shares which helped generate a total trade value of $760 thousand.
In the last few days FEEC‘s stock is traded vigorously going above the 3 million traded shares mark, generating trade values upward from $600 thousand. Where will this lead the company. It might be a possibility for their stock to start deflating if the volumes increase rapidly, a thing that is not an option for long-term investors.
At least we can have a little bit more confidence about FEEC, compared to other OTC Markets companies, due to the fact that they are not using paid promoters to pump their stock and it is growing on its own momentum. This doesn’t mean that this is not an option for the future, but if it does happen it might crash the stock as well as investor confidence as many of the serious investors might not want to go with a company using such methods in term dumping all their stock while they can make a profit.
FEEC, however, are doing well, financial-wise, for an OTC Markets company. To show you what we mean we took the numbers of highest significance from their latest quarterly report covering the period ended March 31 and you can see them listed below.
- cash: $40 million
- total assets: $116 million
- total current liabilities: $37 million
- total liabilities: $57 million
- revenues: $433 thousand
- net loss: $8 million
As you can see they have quite a lot of cash on hand as well as other assets like equipment, unproved and proved properties and a fairly big inventory estimated at $454 thousand. The bad side of things is that they will have to generate higher revenues if they want to keep up with the losses. Comparing the quarterly period ending March 31, 2012 and March 31, 2013 we can see that as well as the revenues, the other thing that is rising is their net loss, which we consider a bad sign. Only the future will tell if they are going to be able to operate at a profit. Until then be sure to do your due diligence and weigh out all the risks before you take an investment choice.
Another company that plummeted yesterday, recovering today is Jammin Java Corp (OTCMKTS:JAMN) who dopped 9% yesterday going from $0.61 to $0.55. On the other side Norstra Energy, Inc. (OTCBB:NORX) are continuing their upward movement and have reached a current price of $0.84 per share.
