Geodex Minerals Ltd. (CVE:GXM
) (PINK:GXMLF) share price hit a roller coaster over the recent couple sessions making it an attractive target for day traders.
GXM regained 20% in value as the share price corrected after a preceding large drop. The stock tanked 55% on Tuesday without any substantial cause for such an outcome. Over the recent sessions GXM attracts a lot of trading interest which puts the stock among the heaviest trading ones on the exchange.
No particular news can be associated with these sudden changes in price. Last week the company announced to have acquired a 21% share of Northcliff Resources Ltd. (TSE:NCF) which led to a mild increase in share price on Monday.
The company got this new ownership in exchange for their 30% stake in the Sisson tungsten-molybdenum project in New Brunswick. Geodex received 16 million common shares of Northcliff and intends to distribute those shares among shareholders.
Whatever caused the panic selling just helped to make bears money and likely won't have a lasting effect. The company's current affairs include 4 other properties, which means them selling the direct ownership in one project should not have a lasting negative effect on the business.