What would you think about a stock that was traded eighteen times its average volume yesterday? Well, for sure, you might say it is greatly demanded by investors, very attractive, very wanted, almost a traders' favorite. On Wednesday, the shares of Gabriel Resources Ltd. (TSE:GBU
), (PINK:GBRRF) were a real investors' darling on the Toronto Stock Exchange (TSE).
Yesterday's turnover of 11.37M shares proves this quite eloquently. GBU became a volume leader on the TSE and earned the grand prize for being the most actively traded item. The price was much, much shier than the volume, and went up just by a small margin. The stock gained 3.4% and finished at $6.92, which is still 14% below GBU's value from a month ago.
You might also ask what has triggered the huge volume spike. To this, however, you will find no easy answer. In fact, you will find no answer at all. There are absolutely no newly released company developments or events of any kind that could explain the sudden rise in the shares' trading activity.
Providing very little information is probably something that the company will have to change in the future if it wants to be even more attractive to investors and to be considered more predictable. Otherwise, the reasons for the behavior of the shares will remain a mystery to the public, as is in the current case. Since last October, Gabriel has not issued a single release dedicated to its properties in the region of Transylvania, Romania.
To the negative facts about the company, we might add some figures from the latest financial statements, for example:
- The net loss for 2010 is $22.7M;
- During the last year, cash and equivalents have decreased by $84.6M.
Nevertheless, the same financial reports reveal several positive numbers too, which could also come in support of a future appreciation of the stock. Gabriel is financially stable with a cash position of $26.6M in the end of 2010 and a working capital of $109.75M.
Finally, it is worth noting that the company is somewhat overestimated by investors - its market value of $2.4B is quite above the tangible worth of business.