Nikolay Tomov
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Torque Energy Inc. (CVE:TQE), (PINK:TQEEF) Marked a Record Trading Volume

by Nikolay Tomov May 25, 2011
Torque_-_Chart_for_25_May_2011.jpgThe stock of Torque Energy Inc., not a very liquid one, finally received greater attention from traders. The last five sessions on the TSX Venture Exchange (CVE) were marked by a turnover exceeding several times the average. At the same time, the price of the shares (CVE:TQE), (PINK:TQEEF) remained practically unchanged.

No new company developments were released during the last week. The only exception was the announcement of the Annual and Special General Meeting of shareholders, which is to be held on Jun 30.

The big news, the really thumping news, came at the very beginning of this month. It was then when Torque informed about accepting an offer to become a wholly-owned subsidiary of Eurogas. This transaction needs the final approval of stockholders - they will take their decision at the annual meeting.

Without any doubt, Eurogas offer is an enormous recognition for Torque. It also had an enormously positive effect on the stock performance. When the news was released, TQE flew by 50% in just a session, jumping from $0.32 to $0.48. Since then, the shares' performance has been stable and with low volatility. TQE has been cruising between $0.48 and $0.495, setting a 52-week high of $0.50 two weeks ago.

Maybe, it is the trading volume that makes the greater impression. During the last session, almost 1M shares changed hands, which is a record trading activity for the company.

This behavior of the stock is far from surprising. In compliance with the above-mentioned Eurogas offer, Torque stockholders will receive for each one of their shares either 0.5 Eurogas shares, or a payment of $0.50. For some time now TQE has been moving around this offer price, not being able to exceed it.

Torque_-_Logo.jpgThe future development in the share performance is mainly dependent on how the story with Eurogas will finish. That is why it is of little use to make predictions about the behavior of the stock in the days to come. Probably, the consolidation around the $0.50 level will continue, unless something dramatic happens.

Perhaps, it is worth noting that Torque made a profit of $0.187M and revenues of $0.77M for the three months ended Feb. 28, 2011. This could be compared with a profit of $0.15M and revenues of $0.726 for the corresponding quarter in 2010. The readers might draw up their conclusions themselves. Besides, TQE has been overbought for some time.

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