Gediminas Jasionis
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Canadian Oil Recovery & Remediation Entp (CVE:CVR) (PINK:CRVYF) Rallies After Winning An Important Contract

by Gediminas Jasionis Jan 5, 2012
1 Comments
cvr_chart.pngCanadian Oil Recovery & Remediation Entp (CVE:CVR) (PINK:CRVYF) gained another 14.3% on Wednesday pulling off the heaviest trading volume of the year, which topped 1.5 million and was heavily above the average 166 thousand.

This was a third consecutive day of rallying for CVR. The trading mostly concentrated towards the second half of the session as the day was influenced by mid-day news. Bears dominated the very end of the session though, suggesting a pullback might be coming next.

Around noon of January 4 the company stated to have won an oil management contract and was in the middle of finalizing an agreement. The company will provide services of cleaning and treatment of oil and gas drill cuttings in Jordan in the Middle East.

The contract should be finalized this month and will be done for a two year period with a possible extension for one more year from the customer side. Since the contract allows for services pricing to be flexible, thus the actual impact on the company's top line remain a mystery at the time. Operations under this agreement should start in the second quarter.

corre_logo.jpgConsidering the undefined financial impact of this contract the current market price rally should be expected to be rather conservative. It has advanced significantly over the last three sessions and it might cause a serious correction if the news flow would stop after that.

Comments (1)

1. Guest
January 05, 2012, 07:27PM

Quotes but the company has other bids in the pipeline

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