Gediminas Jasionis
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Traders Looking at Emerald Bay Energy Inc. (CVE:EBY) (PINK:EMBYF) Got Excited for Nothing

by Gediminas Jasionis Feb 2, 2011
1 Comments
EBY_chart.pngEmerald Bay Energy Inc. (CVE:EBY) (PINK:EMBYF) recorded a heavy trading volume on a breakout attempt, but the price failed to stay up on Tuesday.

This breakout attempt didn't provide much more than a general excitement. Follow up is largely questionable and liquidity issues might trap traders who decide to join the venture.

With 22% addition to the share price, the market cap got above $3 million. The situation is not uncommon, but a follow up price burst should be prevented by the existing trading channel. Strong trading volume was mostly concentrated in the first part of the day, as seen from the intraday chart, possibly coming from short squeezes as the price did gap up on Tuesday morning.

Fundamentally and news-wise, Emerald has little drive to support any price advances. The company's last serious update on operations was published back in March 2010. All the more important press releases since then were announcements of private capital placements. The share price stayed in the volatile channel since then as well.

emerald_bay_logo.jpgLiving off the money raised through private capital placements, the business can hardly offer much return on investment for shareholders. The company does comparatively small-scale funding rounds and part of these funds comes from insiders.

Comments (1)

1. Antoine
February 05, 2011, 10:29PM

Quotes Congratulations for your very good stock analysis. I'am very interested in all those less than one dollar stock.

Kind regards

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