Two days ago, Counsel Corporation stock (TSE:CXS
), (PINK:CXSNF) reminded once again convincingly about its presence on the market. On the Toronto Stock Exchange (TSE), it jumped almost 16% up on a turnover of over 5M shares, a volume record for the last three years.
As seen on the chart, CXS has come up with such spikes several times since New Year. Over that period, CXS managed to climb 32% up. Unlike the previous rises, however, this time the run-up was confirmed by a very large for the company trading volume.
It was perhaps Tuesday's release that drove the latest shares' surge. Cousel announced the conversion of over 6M Series B preferred shares into common shares at a price of $0.75 per share. As a consequence, Counsel now has over 77.2M outstanding shares. Company's officials were more than pleased about this, saying the conversion "greatly strengthens Counsel's financial position".
Analyzing the latest reports, filed by Counsel Corporation, we can draw the following comparison between the third quarters of 2010 and 2009:
- The company has $1.91M in cash, matched with $6.64M at the end of the relevant quarter in 2009.
- It has reported a working capital deficiency of $37M at Sep. 30, 2010;
- Revenues are 10% higher than those in 2009;
- The recorded net income is $0.80M, compared to a net loss of $1.97M in 2009;
In addition, the present market value of Counsel is about $58M, more than three times the net tangible worth of the company, and seems maybe a little too high.
These somewhat controversial results make it no easier to predict how the shares' price will alter in the future. It maybe depends on whether Counsel will produce other important developments soon. For now, the buying enthusiasm seems to have been dried out - yesterday CXS slipped by almost 7% on the TSE.