Gediminas Jasionis
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Selectcore Ltd. (CVE:SCG) (PINK:SLXXF) Stock Springs Into Action

by Gediminas Jasionis Dec 8, 2011
0scg_chart.pngSelectcore Ltd. (CVE:SCG) (PINK:SLXXF) price action was spiced up by recent news but the rally will likely be short lived.

SCG trading volume hit 5.9 million on Wednesday as their stock price jumped up 26.9%. The trading activity was nearly 5 times heavier than the average 1.21 million.

The price still hasn't gone up to the most recent price top at 37.5 cents per share, but it might do so considering the strong action. There are no other strong resistance points on the way, but the rally is supported by questionable news and might fall apart pretty quickly.

56selectcore_logo.jpgOn December 7, Selectcore announced to have retained a Financial Advisor to act as an agent in merger and acquisition proposals the company has been presented recently. While this appears to be the cause for stir on the market, the price has actually been going up since the company published third quarter results on November 29.

The results weren't that good either:
• Revenue dropped 18.9% to $21.1 million;
• Net loss was 1.1 million compared to net profit last year;
• Working capital deficit was reduced to only $1.6 million;
• Cash flow was positive $1.99 million due to $2.2 million in sales of capital stock;
• Stock dilution rate was 14.1%;

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