Eacom Timber Corporation (CVE:ETR) (PINK:ERTFF) share price rallied as some heavy trading took place, but it doesn't seem to lead anywhere. The price was forced up by a strong performance of the forest sector
, which has gone up for the fourth month in a row.
ETR stock price rallied 5.6% under a heavy trading volume of 8.4 million which was more than 13 times the daily average of 612 thousand.
ETR even got listed among the most actively traded stocks on the exchange, which makes ETR to stand out on stock screeners. Despite this, the stock isn't very likely to get an adequate attention from traders. Liquidity issues are concerning and the most recent intraday price action showed choppy indecisive movement.
The company doesn't have anything fundamentally appealing for traders to build on. ETR pricing stayed around the current levels for most of the past one year and without positive news the stock wont budge.
Eacom has to deal with serious negative results from operations - their losses have been in tens of millions for a couple of quarters in 2011. This keeps the market value as low as just a quarter of the book value the company should have with the recent $40 million financing round, which was closed on April 11, 2012.