Nikolay Tomov
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Will AQM Copper Inc. Stock (CVE:AQM), (PINK:APQUF) Make a Rebound?

by Nikolay Tomov May 26, 2011
AQM_Copper_-_Chart_for_26_May_2011.jpgTwo weeks ago, the shares of AQM Copper Inc. (CVE:AQM), (PINK:APQUF) reached the bottom by slipping to a 1.5-year low of $0.55. Since then, AQM has managed to regain a tiny part of its fallen dignity. In the last session, the stock went over the $0.6 price mark again. What deserves to be noted is the huge turnover which surpassed several times the average trading activity.

A volume of 839,500 shares is, maybe, not such an imposing figure. For the company, however, this is something close to a small miracle. It cannot be otherwise, having in mind that the average trading volume for the last 30 days is slightly above 140 thousand. As for the price, AQM moved up by 1.67%, to close at $0.61. This is, as we see, only 10% over the fore-mentioned low of $0.55.

Judging from this data, we might suggest that the stock is struggling. AQM Copper is struggling to provide enough information to traders and shareholders too. Or, perhaps, it is unwilling to issue such information. Or, probably, nothing is happening with the company, and there is nothing to be released to the public.AQM_Copper_-_Logo.jpg

No matter what the reason is, such informational darkness is of little help to AQM Copper. The latest official news announced by the company was dated Apr. 12, when investors learned AQM Copper received an exploration permit for the Zafranal project from the Peruvian Ministry of Energy and Mines. The corporation also informed that it would soon commence its 2011 drilling program at the property.

Since then, we have heard almost nothing about AQM Copper. The only exception is an announcement from yesterday, however, it is not an official company release. It informs us that AQM Copper Inc. will be among the participants and the presenting companies at the 11th Annual Metals and Mining Conference. The latter is organized by the New York Society of Security Analysts (NYSSA).

This is definitely something positive, as it will give AQM Copper the opportunity to attract additional investor's attention. Other favorable for the company facts derive from the latest financial reports. AQM Copper finished last year with more than $23.5M in cash and a working capital of $23.4M.

On the other hand, the company earns no revenues, as it is still in the exploration stage. The net loss for the nine months ended Dec. 31, 2010 was significant - $4.37M. The stock dilution that jumped by almost 130% in 2010 also raises some concerns.

Of course, everything will look much better when AQM Copper enters the production phase and when its two assets really prove to possess the resources the company claims they have.

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