Spi Energy Co Ltd (ADR) (NASDAQ:SPI)

Spi Energy Co Ltd (ADR) (NASDAQ:SPI) Sells Solar Plant, Buys 3 Plants

Spi Energy Co Ltd (ADR) (NASDAQ:SPI)

Spi Energy Co Ltd (ADR) (NASDAQ:SPI) gained 3.57% after announcing the completion, successful grid-connection, and sale of ‘Shibayama 1’ solar plant east of Tokyo. The 2.4MW plant, with an estimated 3,100,000kWh of annual production, is among 4.8 MW plants under construction by Kyocera.

Spi Energy Co Ltd (ADR) (NASDAQ:SPI)

In September, Spi Energy Co Ltd (ADR) (NASDAQ:SPI), through its subsidiary SP Orange Power Cyprus Limited, entered into a framework purchase agreement. Pursuant to the agreement, the company is to acquire 100% interests in three Greek companies, namely THERMI SUN S.A, HELIOHRISI S.A. and HELIOSTIXIO S.A., from THERMI TANEO Venture Capital Fund (“TTVCF”) for €16.65 million.

The three companies own four PC plants with 7.4MW Photovoltaic installations in Greece. With the acquisitions, Spi Energy Co Ltd (ADR) (NASDAQ:SPI) should become one of the biggest Photovoltaic solution provider in Greece. The transaction is to close in three stages pending completion by March 2019.

Spi Energy Co Ltd (ADR) (NASDAQ:SPI) is still trading in a downtrend and close to its 52-week low of $0.83 a share. The stock has underperformed the overall industry for the better part of the year, having shed more than 80% of market value.

10-for-1 Share Consolidation

Separately, Spi Energy Co Ltd (ADR) (NASDAQ:SPI) has completed a 10-for-1 share consolidation following approval by shareholders at an extraordinary general meeting. Each 10 pre-consolidation ordinary shares outstanding were automatically combined into one share of the company.

The 10-for 1 share consolidation is poised to reduce SPI Energy shares to 5 billion with the number of issued and outstanding shares set to reduce from 725 million to 72 million.

In addition, Spi Energy Co Ltd (ADR) (NASDAQ:SPI) entered into share purchase agreement with Qian Kun Prosperous Times Investment Limited and Alpha Assai fund SP OF Sunrise SPC last month. Pursuant to the agreement, the global provider of photovoltaic solutions for businesses and residential is to issue a total of 80 million ordinary shares to Qian Kun and 240 million to Alpha Assai.

The company expects gross proceeds of $33. 9 million from the two offerings subject to the terms of conditions of the respective share purchase agreements

Spi Energy Co Ltd (ADR) (NASDAQ:SPI) has confirmed the resignation of Roger Dejun as a director of the board.

“We would like to thank Mr. Roger Ye for his dedication and contributions to the Company and we are grateful for his support and cooperation during his tenure as a valued board member and wish him well in his future endeavors,” said Xiao Feng Peng, Chairman and CEO of SPI Energy.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SPI and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Energy XXI Gulf Coast Inc. (NASDAQ:EXXI)

Energy XXI Gulf Coast Inc. (NASDAQ:EXXI) Drops on Wider Net Loss

Energy XXI Gulf Coast Inc. (NASDAQ:EXXI)

Shares of Energy XXI Gulf Coast Inc. (NASDAQ:EXXI) fell 34.3% after the oil and natural gas exploration and production company reported disappointing third quarter financial results. A net loss of (-$31.6) million or (-$0.95) loss per share, attributed to lower production and losses on derivative financial instruments, did not go well with investors.

Energy XXI Gulf Coast Inc. (NASDAQ:EXXI)

EXXI Stock Performance

Tuesday’s sell-off resulted in Energy XXI Gulf Coast Inc. (NASDAQ:EXXI) recording a new 52-week low of $5.32 a share as the stock’s downturn shows no signs of slowing down. The stock has underperformed the overall industry for the better part of the year even as the energy sector shows signs of recovery. For the full year, the stock is down by more than 80% as it continues to trade in a strong downtrend.

Energy XXI Gulf Coast Inc. (NASDAQ:EXXI) underperformance has already caught the attention of analysts. According to data compiled by Zacks Investment Research, analysts are forecasting earnings increase of 0% this year, over last year. Next year earnings on the other hand should increase 21.1%

Total revenues for the third quarter totaled $117 million inclusive of a $12.5 million loss on derivative financial instruments. Second quarter revenues totaled $143.7 million. Total LOE in the quarter was $77.8 million per BOE, made up of $64.3 million in lease operating expense. According to the Chief Executive Officer, Douglas E. Brooks, reduction of LOE and G&A costs resulted in a 45% improvement in adjusted EBITDA quarter over quarter.

Commodity Hedging

The natural gas exploration and development company entered into fixed price swap contracts benchmarked to NYMEX-WTI to hedge 8,000 BOPD of production for the full year. The swap contracts are priced at $50.68. The company also has fixed price swap contracts benchmarked to LLS-Argus for 2,000 BOPD with an average fixed price of $55.45 for the January to June 2018 period.

Energy XXI Gulf Coast Inc. (NASDAQ:EXXI) is currently working with its financial advisors on it’s long-term strategic plan focused on the Gulf of Mexico consolidation

“Since no executable combination has resulted from these discussions, we are now focused on our stand-alone options, which include a drilling program beginning in early 2018. This activity in 2018 and beyond may be funded internally through existing liquidity, the benefit of higher oil prices, and continued progress on reducing costs,” said Mr. Douglas E. Brooks.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $EXXI and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

FuelCell Energy Inc. (NASDAQ:FCEL)

FuelCell Energy Inc. (NASDAQ:FCEL) Short Interest Drops

FuelCell Energy Inc. (NASDAQ:FCEL)

FuelCell Energy Inc. (NASDAQ:FCEL) shares gained 4.52% in Friday’s trading session as short interest on the stock continued to drop. Over the past two weeks, short interest has dropped by 3.3% and currently accounts for 7.2% of the company’s total float.

FuelCell Energy Inc. (NASDAQ:FCEL)

Fuel Cell Technology

FuelCell Energy Inc. (NASDAQ:FCEL) has been on an impressive run – since June it has gained more than 100% in market value. However, for the full year, the stock is up by 15%. The stock is currently trading in an uptrend.

Growth in popularity of the company’s fuel cell technology appears to have strengthened investors’ confidence in the company’s long-term prospects. The technology utilizes a chemical reaction to convert a fuel source to electricity. Given its benefits and the fact that it is eco-friendly, the U.S Defense Department has started to use the technology.

General Motors has started working with the U.S army to develop fuel cell electric vehicles as the race to reduce dependence on conventional fuel gathers momentum. The rise in popularity of this technology has resulted in fuel cell producers like FuelCell attracting big contracts from customers across various sectors.

FuelCell Energy Inc. (NASDAQ:FCEL) has since entered into a power purchase agreement with the Connecticut Municipal Electric Energy Cooperative. The agreement is for the supply of power to the U.S Navy Submarine Base in Groton. The 7.4MW clean power is to be generated from the company’s two SureSource 400TM power plants.

The power project will ensure the U.S Navy has long-term cost-effective power for powering critical infrastructure. The fuel cell plants are also to be configured for grid-independent operations.

“Our fuel cell solutions are compelling as their predictable and clean power generation profile meets resiliency and environmental goals simultaneously. Additionally, this project is structured so that the U.S. Navy enjoys the many benefits of clean on-site power generation while continuing to work with its local and trusted utility under a pay-as-power-is-produced model,” said CEO Chip Bottone.

SureSource Certification

Separately, FuelCell Energy Inc. (NASDAQ:FCEL)’s SureSource 1500 fuel cell power plant operating on Anaerobic Digester Gas has received an important certification. The California Air Resources Board’s certification acknowledges the clean air profile of the solution, in facilitating air permitting process which reduces costs.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $FCEL and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Smart Sand Inc. (NASDAQ:SND)

Smart Sand Inc. (NASDAQ:SND) Revenues Surge 260%

Smart Sand Inc. (NASDAQ:SND)

Shares of Smart Sand Inc. (NASDAQ:SND) gained 15.12% after the low cost producer of high-quality Northern White raw frac sand reported its best-ever quarter. Revenue for the three months ended September 30, 2017, increased 260% year-over-year, due to higher sales volumes and increased freight revenues.

Smart Sand Inc. (NASDAQ:SND)

According to Chief Executive Officer Charles Young, performance in the quarter underscored the company’s focus on maximizing production and effective management of railcar movements.

“Market demand for our high quality, Northern White frac sand remains strong and we look forward to bringing our additional 2.2 million tons of annual production capacity online by the end of the first quarter of 2018,” said Mr. Adams.

The sentiments appear to have strengthened investors’ confidence in the stock as it continues to bounce back from this year’s low. However, Smart Sand is still trading in a downtrend after losing more than 60% in market value since February.

According to data compiled Zacks Investment Research, Smart Sand Inc. (NASDAQ:SND) is currently rated as a ‘strong buy’ by five Wall St. analyst firms.

Smart Sand Q3 Financial Results

Revenues for the three months ended September 30, 2017 totaled $39.3 million. Smart Sand Inc. (NASDAQ:SND) attributes the 260% increase to customers billed through freight charges as well as increased sales volumes. Revenue in the quarter was also up by 32% compared to the second quarter, due to the higher average selling price.

Smart Sand sold a total of 653,400 tons in the quarter representing a 184% year over year increase from 229,600 tons sold last year. The number of tons sold in the quarter also represented a 23% increase from the second quarter.

Smart Sand Inc. (NASDAQ:SND) generated a net income of $7 million or $0.17 a share in the quarter compared to a net loss of (-$0.1) million reported last year. Adjusted EBITDA totaled $11.4 million nearly triple $4.5 million reported during the third quarter of 2016. Smart Sand attributes the increase to increase in sales volume and higher average selling price per ton.

Capital expenditure in the quarter totaled $19.9 million mostly attributed to expansion works at the Oakdale sand processing facility and investment in various enhancement and cost improvement projects.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SND and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Enphase Energy Inc (NASDAQ:ENPH) Bests Price Target!

Enphase Energy Inc (NASDAQ:ENPH)

Enphase Energy Inc (NASDAQ:ENPH) stock is up 18%, to the $1.70 handle,  in mid-morning trading action after the solar technology company beat street forecasts. Enphase reported a Q3 (-$6.9) million loss on revenues of $77 million.  of $6.9 million in its third quarter. Adjusted for non-recurring costs and stock option expense, the per share loss came to (-$0.01). The Zacks Investment Research consensus of analysts was for a per share loss of (-$0.05). The company reported an ending cash balance of $28.9 million.

Enphase Energy Inc (NASDAQ:ENPH)

Badri Kothandaraman, president and CEO of Enphase Energy Inc (NASDAQ:ENPH) stated “We completed the transition to our sixth-generation IQ Microinverter System for our North American customers during the third quarter, and we expect to introduce our seventh-generation IQ product worldwide in the first quarter of 2018. These transitions, along with our continued focus on operational excellence, will help drive further gross margin improvement.”

Enphase Business Outlook

For the current quarter ending in December, Enphase Energy Inc (NASDAQ:ENPH) said it expects revenue in the range of $72 million to $80 million. Q4 GAAP and non-GAAP gross margin are expected to be within a range of 21.5% to 24.5%. Non-GAAP gross margin excludes approximately $300,000 of stock-based compensation expense. Enphase’s GAAP operating expense for the fourth quarter should be between $19.5 million and $21.5 million with non-GAAP operating expense to be within a range of $16 million to $18 million, excluding an estimated $1.4 million of stock-based compensation expense and approximately $2.1 million of additional restructuring expense.

ENPH Stock Performance

Six firms follow Enphase Energy Inc (NASDAQ:ENPH). Three rate ENPH stock as a “Hold”. Two rate the shares as a “Strong Buy”, and one rates ENPH as an “Underperform”.

Sales rose from 2012 when the company reported $216.7 million, to 2015 when the company reported a figure of $357.2 million. However, for 2016, the company posted its first drop in aggregate sales and posted $322.6 million.

Earnings have come with difficulty over the years. In 2012 the company posted a per share loss of (-$1.24) per share. The next two years saw smaller year-on-year losses, then the losses began expanding and in 2016 came in at (-$1.34) per share.

Despite the losses, performance in the market has been robust over the past year (+25.9%) and year-to-date (+44.6%). The price action today has exceed the analysts’ consensus, one-year price target of $1.58.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $ENPH and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

SAExploration Holdings, Inc. (NASDAQ:SAEX) at Top of Sector Performance

SAExploration Holdings, Inc. (NASDAQ:SAEX)

SAExploration Holdings, Inc. (NASDAQ:SAEX) stock is up over 12.5% in early trading on a volume six times higher than the pro-rated daily average. This morning, SAEX shares are the best performers in the “Oil & Gas Equipment & Services” sector.

SAExploration Holdings, Inc. (NASDAQ:SAEX)

SAExploration Holdings, Inc. (NASDAQ:SAEX), headquartered in Houston TX, is an oilfield services company offering vertically-integrated seismic data acquisition and logistical support services in remote and complex environments. SAE operates crews around the world, performing major projects for major integrated oil companies, national oil companies, and large independent oil and gas exploration companies. Operations are supported through a presence in Houston, Alaska, Canada, Peru, Colombia, Bolivia, Brazil, and New Zealand.

Circumstances, possibly hurricane related, forced the company to reschedule its Q2 2017 earnings report for almost three weeks. However, last week the company announced plans to release its unaudited consolidated Q3 2017 financial results on Wednesday, November 8, 2017 after close of trading.

SAEX Stock Performance

With a market capitalization of $18 million, SAExploration Holdings, Inc. (NASDAQ:SAEX) is considered a nano-cap company. However, as a company in the energy sector, it has a large operating cashflow in the neighborhood of $160 million annually.

Earnings have been historically poor for the company. After posting a per share profit of $234.59 in 2012, they followed that stellar performance up with an EPS loss of (-$283.89) in 2013, and (-$383.52) in 2014. Those massive losses were followed by smaller EPS losses of (-$84.55) in 2015, and (-$6.13) in 2016. In 2016, the company also increased the number of outstanding shares, and diluted shareholder equity, from 120,000 to 4.08 million.

Institutions have decreased their shareholdings in SAEX stock by over 30%. Year-to-date, the stock is down almost 75%.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SAEX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Gevo, Inc. (NASDAQ:GEVO)

Will Gevo, Inc. (NASDAQ:GEVO) Earnings Surprise?

Gevo, Inc. (NASDAQ:GEVO)

Gevo, Inc. (NASDAQ:GEVO) will be releasing their Q3 2017 earnings announcement after the market closes on Monday, November 6, 2017. According to reports, industry analysts are expecting Gevo to report a (-$0.41) per share loss for Q3 2017.

Gevo, Inc. (NASDAQ:GEVO)

Gevo, Inc. (NASDAQ:GEVO), based in Englewood, Colorado, is a green technology and biofuels company. Gevo has developed proprietary technology to produce isobutanol, as well as related products, from renewable feedstocks. Gevo’s business focuses on bio-based alternatives to petroleum-based products. Gevo produces isobutanol, ethanol, and high-value animal feed at its fermentation plant in Luverne, Minnesota.

Gevo Q3 Business Advances

On July 25, 2017, Gevo announced, working with Praj Industries Ltd., that Gevo’s proprietary isobutanol technology would be available for licensing to sugar-cane processors. Licensing efforts have focused on Praj plants located in India, South America and South-East Asia, with initial capacity targeted to come on-line in 2019 or 2020.

On October 9, 2017, Gevo, Inc. (NASDAQ:GEVO) announced that it will be partnering with the Los Alamos National Laboratory (LANL) on a project to improve the energy density of certain Gevo high energy density fuels (HEDFs), such as its alcohol-to-jet-fuel (ATJ). HEDFs are currently used in U.S. military air and sea-launched cruise missiles. If this project is successful in scaling HEDFs cost-effectively, there may be an even broader application in the general aviation sector.

GEVO Stock Performance

GEVO stock has been trading under $1 since mid-May. Technically, this puts the company in violation of NASDAQ Rule 5550(a)(2) which states that “(a) Continued Listing Requirements for Primary Equity Securities: (2) Minimum bid price of at least $1 per share.”

When the performance of Gevo, Inc. (NASDAQ:GEVO) shares is adjusted for dilution, the per share losses seem eye-popping. In 2012 the per share loss was (-$558.37). That loss was spread out over just 110,000 outstanding shares in 2012. By 2016 the per share loss was (-$9.68) and the number of outstanding shares was 3.85 million.

Two firms follow Gevo, Inc. (NASDAQ:GEVO). One rates GEVO stock as a “Strong Buy” while the other rates the shares as a “Hold”. Their analysts’ consensus, one-year price target is $8.50. However, GEVO stock has lost over 80% of its value in the past year and is 92% below its 52-week high of $9.00.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $GEVO and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

EV Energy Partners, L.P. (NASDAQ:EVEP)

EV Energy Partners, L.P. (NASDAQ:EVEP) Stock Booms!

EV Energy Partners, L.P. (NASDAQ:EVEP)

EV Energy Partners, L.P. (NASDAQ:EVEP) shares broke above six-month resistance levels and more than doubled since early September. EVEP stock ended Thursday’s trading session at $0.77 then opened today at $0.78 before rocketing to an inter-day high of $1.16 on heavy volume. EVEP shares have an average trading volume under 200,000 shares but today almost 3 million shares have exchanged hands with 30 minutes left in the trading day.

NASDAQ:EVEP

EV Energy Partners, L.P. (NASDAQ:EVEP), based in Houston, TX, specializes in the acquisition, operation, and development of onshore oil and gas properties in the USA. Operations are currently ongoing at the Barnett Shale, the San Juan Basin, the Appalachian Basin, Michigan, Central Texas, the Monroe Field in Northern Louisiana, the Mid–Continent areas in Oklahoma, Texas, Arkansas, Kansas and Louisiana and the Permian Basin.

EVEP Stock Performance

Between the second week in June and the end of October, EV Energy Partners, L.P. (NASDAQ:EVEP) stock had a trading range between $0.40 and $0.80. The shares had established a new 52-week low in mid-August of $0.37. However in the last seven trading sessions, EVEP stock has gone from $0.60 to today’s high of $1.16.

In 2016, EVEP stock received five ratings downgrades from analysts. Five investment firms follow EV Energy Partners, L.P. (NASDAQ:EVEP). Four rate EVEP shares as a “Hold” and one rates the shares as a “Underperform”. YTD, EVEP has underperformed the sector by around 40%.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $EVEP and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

MagneGas Corporation (NASDAQ:MNGA)

MagneGas Corporation (NASDAQ:MNGA) Projects Revenue Growth

MagneGas Corporation (NASDAQ:MNGA) Projects Revenue Growth

MagneGas Corporation (NASDAQ:MNGA) shares traded higher after the clean technology company said it expects its full-year revenues to increase by 120%. The stock gained 2.2% to end Monday’s trading session at $0.435 a share.

MagneGas Corporation (NASDAQ:MNGA) Projects Revenue Growth

Revenue Growth

Monday’s rally did not have a big impact on the stock’s direction of trade. MagneGas Corporation (NASDAQ:MNGA) stock is down by more than 80% for the year.

For the full year, the company expects revenues of $7.5 million, up from $3.4 million reported last year. The expected growth follows the execution of an ambitious growth strategy over the past year, which Chief Financial Officer, Scott Mahoney, says has allowed the company to focus on sales.

MagneGas Corporation (NASDAQ:MNGA) has successfully expanded its distribution network by expanding relationships across the eastern part of the U.S. in addition to pursuing sales opportunities in Italy and Germany.

“The Company made a strategic decision a year ago to focus on immediate revenue generation, improving cash flows and profitability. I am pleased to report that we have turned the corner, and we are on pace to generate more revenues in the fourth quarter of 2017 than we have in any full fiscal year in our corporate history,” said Ermanno Santilli, CEO of MagneGas.

The ambitious growth strategy has allowed MagneGas Corporation (NASDAQ:MNGA) to record a material increases in operating cash flows.

4th Generation Gasification System

Separately, MagneGas Corporation (NASDAQ:MNGA) has completed the design process of a revolutionary 4th generation gasification system. Development of the new system is expected to put the company ahead of the competition.

The 4th generation gasification system will reduce total production costs by at least 50% in addition to a 75% reduction in power consumption per cubic foot. MagneGas hopes the new gasification system will gain significant market share.

“This new system should significantly reduce the cost of MagneGas2® production. It also has the potential to open lucrative markets in the gasification of solids and solid wastes such as coal and plastics,” said Mr. Santilli.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $MNGA and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Torchlight Energy Resources Inc (NASDAQ:TRCH)

Oil Price Bring Traders to Torchlight Energy Resources Inc (NASDAQ:TRCH)

Torchlight Energy Resources Inc (NASDAQ:TRCH)

Torchlight Energy Resources Inc (NASDAQ:TRCH) shares are up over 7% to $1.49, and trading on a volume that is over 11 times their 30-day, daily average. Shares may be moving higher on the news from the European oil markets that the price of crude oil is rising in an environment where additional production is far from a certainty.

Ten-day chart for TRCH stock:

Torchlight Energy Resources Inc (NASDAQ:TRCH)

Plano, TX-based Torchlight Energy Resources Inc (NASDAQ:TRCH) is a high-growth oil and gas exploration and production (E&P) company with a focus on acquisition and development of highly profitable domestic oil fields. The company has assets focused in West and Central Texas where the company targets established plays such as West Texas’ Permian Basin and Eagle Ford Shale.

On October 18, Torchlight Energy Resources Inc (NASDAQ:TRCH) provided an update to the flowback process underway on its Flying B Ranch #3H well. At that time, the company said it was producing ~2500 barrels of fluid per day and experiencing increasing oil cuts and gas production. Most recent measurements reflected an oil cut of roughly 6% reaching ~150 BO/d and 30 MCF/d.

TRCH Stock Performance

TRCH shares have done well this year – up over 36%. However, this week alone the shares have skyrocketed and are up over 27%. That move pushed their Relative Strength Index (RSI) figure above 70 to 75. Accordingly, they are now trading in an area (above 70) that many traders consider to be in “overbought” condition, but given the recent upward trajectory in global oil prices, more may be left to the upside for this energy stock.

As demonstrated by the increase in share volume, traders may be moving quickly in this stock to capture any quick moves. Long-term investors have been rewarded but they also are skittish of the fact that Torchlight Energy Resources Inc (NASDAQ:TRCH) had increasing per share losses from 2012 through 2015 when the company posted a loss of (-$1.56) per share. That loss shrank to (-$0.18) for 2016. Another area of concern for long-term holders is the shareholder’s equity dilution. In 2014 15.73 million TRCH shares were outstanding. That number increased almost three-fold by the end of 2016 to 43.12 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $SMIT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.