Gediminas Jasionis
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Global Hunter Corp. (CVE:BOB) (PINK:GBLHF) Allowed to Extend Warrants Expiration Term

by Gediminas Jasionis Dec 2, 2011
7bob_chart.pngGlobal Hunter Corp. (CVE:BOB) (PINK:GBLHF) attracted tremendous interest from traders after the company extended the expiration date of some warrants.

BOB stock price jumped up 12.5% on Thursday under a very significant trading volume of 1.95 million. It was more than 10 times the average of 184 thousand and stood out as one of the heaviest trading volumes recorded over a year.

The reason for the increased buying pressure might be related to the news release the company published on December 1. Global Hunter said they got permission from the Toronto Stock Exchange to extend the exercise term of 20 million common stock purchase warrants. The expiration date was postponed by half a year to June 15, 2012. The company will also seek to extend the term for 24 million more warrants which are currently past their expiration date and set a new term to July 9, 2012.

Since the stock price didn't manage to push through the resistance at 9 cents per share under such a heavy trading volume, it is unlikely this move will turn into anything more serious. A similar one-day spike in October led to a subsequent price drop.

globalhunter_logo.jpgHowever, if the stock would perform to technically break out, it would theoretically have some space for appreciation. The current market cap is only 1.5 times book value, and this value can increase to about 2 without raising a concern as it is acceptable for stocks of similar nature.

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