Profire Energy, Inc. (OTCBB:PFIE) Scares With Intra-Day Dip
After steadily marching throughout October and adding 90% to its share price in a series of steady green sessions, this week Profire Energy, Inc. (OTCBB:PFIE) went more volatile and moved in both directions, finally charting a more significant red day yesterday.
Share volume was slowly rising and peaked yesterday at 168 thousand shares traded. PFIE opened down and dipped as low as $3.46 on a volume spike, frightening a few traders. Luckily, the stock managed to bounce back and recovered to a close of $3.97 per share. Once again, technical lovers would note that the reversal triggered at the ticker’s 10-day moving average.
PFIE happens to be a company that is quite a bit different from many of the stocks we cover and from a good part of the OTCBB as a whole. PFIE deals in combustion equipment and has a balance sheet that boasts some very respectable numbers. Here is what the company published in its latest 10-Q for the period ended June 2013:
- $1.7 million in cash, $12 million in current assets
- $2.3 million in total liabilities
- $7.1 million in quarterly revenues
- $1.6 million in quarterly net income
It’s refreshing to see an OTC company that doesn’t simply turn seven-digit revenues, it even manages to log net profit in seven digits too. Revenue for the quarter has doubled year-over-year and net income has nearly tripled on the same basis.
With no grim news coming out and no new filings, yesterday’s drop may have simply been a small corrective move that could prove to be healthy in the long run, as Monday’s double-digit green close shook up the steady climb. The fact that PFIE managed to put brakes on the slide at its 10-day MA and claw its way a whole 50 cents up suggests that this was probably not the start of a catastrophic slip but just minor correction.
Other stocks that closed red in yesterday’s OTC session include Globalstar, Inc. (OTCMKTS:GSAT) who moved 5% down. Solar Power, Inc. (OTCMKTS:SOPW) were less fortunate and retreated 22% to a close of $0.28 per share.
