Gulf Resources, Inc. (NASDAQ:GURE)

Gulf Resources, Inc. (NASDAQ:GURE) Regulatory Scrutiny Rattles Investors

Gulf Resources, Inc. (NASDAQ:GURE)

Gulf Resources, Inc. (NASDAQ:GURE) felt the wrath of Wall Street after announcing the closure of its Bromine, crude salt and chemical Chinese factories for rectification and improvement. The stock came under immense selling pressure, dropping 17.9% to end Thursday’s trading session at $1.64 a share.

Gulf Resources, Inc. (NASDAQ:GURE)
One month GURE stock price chart

Stock Sell Off

The sell-off saw the stock drop from highs of $2.00 after having rallied by more than 20% last month. The stock is currently trading in a $1.60 – $2.00 trading range. A close below the trading range could see the stock end up around the 52-week low of $1.53 a share.

Gulf Resources, Inc. (NASDAQ:GURE) is a holding company that specializes in the manufacture and sale of bromine and crude salt used in oil and gas field exploration. A sell-off of the stock comes to growing concerns about the potential impact of increased government scrutiny on the company.

Regulatory Scrutiny

Early last month, Gulf Resources, Inc. (NASDAQ:GURE) warned that a move by the government to enforce stringent environmental rules could significantly hurt its operations and earnings. The company’s subsidiaries, Shouguang City Haoyuan Chemical Company Limited, and Shouguang Yuxin Chemical Industry Co., Limited have since received letters from Yangkou County, Shouguang City.

In the letter, the local authorities order the immediate shutdown of the company’s production facilities pending rectification and improvements in accordance with new safety and environmental protection. The order comes even on Gulf Resources reiterating that its facilities were fully compliant.

“These are very interesting business situation,” Mr. Liu Xiaoping, the CEO of Gulf Resources, Inc. (NASDAQ:GURE) stated. “With most of the factories in industries such as mining and chemicals closed, there will be many people unemployed. In addition, these basic industries provide products for downstream industries. If they cannot produce products, downstream industries will also have to close.

Shutdown Impact

Gulf Resources, Inc. (NASDAQ:GURE) is currently in discussion with the local authorities as it seeks to resolve the standoff. The company says it might have to purchase new equipment and utilize modern technology, with respect to its bromine production, if it is to meet the environmental requirements.

Investments in new equipment for better waste water treatment among other investments could cost the company between $15 and $30 million. However, it remains unclear the kind of impact the shutdown will have on earnings and capital expenses.

The Chief Executive Officer is confident that the Chinese government will move with speed to complete inspections and agree on the necessary remediation and upgrading.

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 $GURE 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.

Lightbridge Corp (NASDAQ:LTBR)

Lightbridge Corp (NASDAQ:LTBR) Partners with AREVA NP

Lightbridge Corp (NASDAQ:LTBR)

Lightbridge Corp (NASDAQ:LTBR) and AREVA NP have signed a binding agreement for the development and commercialization of a new line of advanced metallic fuel for nuclear plants. Investors reacted to the news by sending the stock up 7.4%.

Wednesday’s rally did little to reverse a strong selling pressure that has plagued the stock in recent weeks. The stock had initially gapped to highs of $1.40 a share before it slumped, to end the day at $1.20 a share. Lightbridge Corp (NASDAQ:LTBR) faces immediate resistance at $1.40, above which it could rise to highs of $2.00 a share – last seen in June.

Lightbridge Corp (NASDAQ:LTBR)
One month LTBR stock price chart

 

Lightbridge-AREVA Joint Venture

The signing of the agreement for the formation of the joint venture comes after six months of intense negotiations focusing on international legal and regulatory complexities. The joint venture should be up and running early next year after the signing of an operating agreement.

Lightbridge Corp (NASDAQ:LTBR) and AREVA have agreed that cash and non-cash contributions into the joint venture will be equal as ownership is on a 50-50 basis. The two companies are currently negotiating agreement on Intellectual property and research and development. Lightbridge has already received a Notice of Allowance in South Korea for a key division patent covering its innovative metallic file assembly design.

Joint Venture Functions

The JV is to act as an exclusive vehicle through which Lightbridge and AREVA are to collaborate on the development, demonstration, licensing and marketing of nuclear fuel assemblies. The venture will encompass pressurized water reactors, boiling water reactors, research reactors and Light water-cooled small-and medium sized reactors. `

“This innovative fuel design offers significant benefit to the nuclear energy industry and efforts are well underway to bring it to market. To achieve this goal, AREVA NP and Lightbridge are engaging our vast worldwide infrastructure, our innovative spirits and, most importantly, our experience,” said Gary Mignogna AREVA CEO.

Lightbridge Corp (NASDAQ:LTBR) has already started to conduct preparatory work for the fabrication and irradiation testing of metallic fuel samples at its Halden research reactor in Norway. The company is also working with leading U.S nuclear utilities as it seeks to gain valuable feedback on the development of its fuel technology.

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 $LTBR 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) Preferred Stock Pricing Rattles Investors

FuelCell Energy Inc (NASDAQ:FCEL)

FuelCell Energy Inc (NASDAQ:FCEL) slumped 3.75% after announcing the pricing of a $33.5 million convertible preferred stock transaction. Investors sent the stock lower even after the company announced a new 20 megawatt fuel cell project in South Korea.

FuelCell Stock Performance

The sell-off is already arousing concerns as to whether it will mark the end of a bullish run that began in May. FuelCell Energy Inc (NASDAQ:FCEL) is currently trading in a $1.45 – $1.63 trading range with a 52-week low of $0.80 a share.

FuelCell Energy Inc. (NASDAQ:FCEL) has struggled to rise above the $1.55 mark which acts as a key resistance level. The stock closing above the $1.63 could fuel a run to the $2.00 a share mark, which appears to be another resistance level.

FuelCell Energy Inc (NASDAQ:FCEL)
One month stock price chart for FCEL.

However, investor’s sentiments on the stock is waning after the pricing of the new stock offering. A point of concern is that the offering could plummet the company into more debt.

FuelCell Energy Inc (NASDAQ:FCEL) plans to offer 33,500 shares of convertible stock with a stated face value of $1,000 a share. The shares carry a 0.0% dividend and can be converted into common shares at $1.84 per common share. Each preferred share is being sold at $895.52 for gross proceeds of $30.0 million.

The company plans to use net proceeds from the offering for working capital purposes as well as financing of a number projects already underway. The offering should close on or about September 8, 2017.

20 Megawatt Fuel Cell Project

Part of the funds from the proposed offering are to be used to finance 20-megawatt fuel cell project that FuelCell Energy Inc (NASDAQ:FCEL) is working on, in conjunction with Korea Southern Power Company. Works on the project should begin before the end of the year with the facility poised to be fully operational next year.

The SureSource 3000 power plant is to produce clean electricity and thermal energy for use in district heating systems. Hanyang Industrial Development Company is to provide the engineering procurement and construction services for the project.

“This is the first fuel cell project for KOSPO and we are pleased that the value proposition of our SureSource solutions meets the exacting needs of KOSPO, one of Korea’s largest utilities. Our multi megawatt, scalable easy-to-site clean energy solutions are well-suited for utility-scale applications such as this project,” said FuelCell Energy Inc (NASDAQ:FCEL) CEO, Chip Bottone.

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: 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

MMEX Resources Corp (OTCMKTS:MMEX)

MMEX Resources Corp (OTCMKTS:MMEX) Secures Construction Permit

MMEX Resources Corp (OTCMKTS:MMEX)

Shares of MMEX Resources Corp (OTCMKTS:MMEX) traded lower after the company announced it had received permits for the construction of a 10,000 barrel per day crude distillation facility in Texas. The stock was down by 19.32% in Friday’s trading session to end the week at $0.0167 a share.

Stock Performance

MMEX Resources Corp (OTCMKTS:MMEX) continues to trade in a downtrend after retreating from this year’s highs of $0.06 per share. The stock is currently trading in a $0.01 – $0.02 trading range having struggled to rise above $0.03 a share mark, a key resistance level.

The development stage company specializes in the exploration, extraction, refining, and distribution of oil, gas, and associated petroleum products. It appears the stock’s sentiments on Wall Street have taken a hit on oil prices struggling to rise above the $50 a barrel mark as uncertainty continues to grip the energy industry.

MMEX Resources Corp (OTCMKTS:MMEX)
One month stock price chart for MMEX

Investment Drive

Amidst the uncertainty in the industry, MMEX Resources Corp (OTCMKTS:MMEX) continues to invest in projects it believes will have a positive impact on its long term growth prospects. In July, the company confirmed the acquisition of 126 acres of land in Pecos County, where it intends to construct the 10,000 barrel-per-day (bpd) crude distillation facility.

MMEX Resources Corp (OTCMKTS:MMEX) plans to acquire an adjacent 350 acres of land where it will construct its Phase II 50,000 bpd refinery. The refinery site is strategically located, which should allow the company to take advantage of the existing railway as well as roadway and pipeline infrastructure.

“The closing of our Phase I land site is a major milestone for the Pecos County refinery project and a catalyst for significant milestones to come […].We’re eager to begin construction on this exciting project and start bringing new jobs to the region,” said CEO Jack W. Hanks.

Construction of the crude distillation facility is to start anytime and slated for completion after 15 months. The company expects the facility to have a significant economic impact on Pecos County during the construction phase and when it becomes fully operational.

The new facility marks yet another milestone in MMEX Resources Corp (OTCMKTS:MMEX) push to reinvigorate its growth prospects. In June, the company reached an agreement that paved way for it to gain access to $3 million in new financing. Part of the funds is to be used to pay down the company’s debt, cater for the construction of the new facility while also financing working capital operations.

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 $MMEX 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.

Northern Dynasty Minerals Ltd (NYSEMKT:NAK) Seeking Partners

Northern Dynasty Minerals Ltd (NYSEMKT:NAK)

Northern Dynasty Minerals Ltd (NYSEMKT:NAK) continues to elicit renewed investor’s interest in the wake of the Trump Administration’s lifting a veto on the development of the Pebble Mine. The stock was up by 10.88% in Tuesday’s trading session as the Environment Protection Agency rolled back restrictions on the development of the underdeveloped copper and gold mine.

Pebble Mine Development

Hopes that the Trump administration will do away with all the restrictions imposed by the Obama administration on the Pebble Mine may continue fueling bullish momentum on the stock. The stock faces immediate resistance at the $1.80 a share mark above which it could rise to May highs of $2.40 a share.

During the Obama administration, Northern Dynasty Minerals Ltd (NYSEMKT:NAK) lost a good chunk of its market value after losing two Pebble Mine partners, Anglo American and Rio. The company has already started to look for new partners in the wake of the EPA initiating the process to withdraw a Proposed Determination that prevented the development of the Pebble Mine Project.

Northern Dynasty Minerals Ltd (NYSEMKT:NAK) has also taken a number of key steps that it hopes will help reduce opposition from native tribes and advocacy groups for the development of the massive gold and copper mine. The steps are designed to reduce the potential environmental impact of the project while also giving voice to the opposition.

“We believe the project design we are preparing to advance into permitting, as well as the social and stakeholder programs and commitments we are building around our project, will address many of the priorities and concerns we have heard from stakeholders in Alaska,” said Northern Dynasty Minerals Ltd (NYSEMKT:NAK) President & CEO Ron Thiessen.

Pebble Mine Development Impact

The chief executive officer remains confident that they will have a partner by the end of the 3rd quarter. Fundamentally, Northern Dynasty Minerals Ltd (NYSEMKT:NAK) stands to benefit a great deal from being given the go ahead to commence mining operations at Pebble Mine.

There is also a possibility of the company being acquired by another company given the Pebble Mine potential. However, the Northern Dynasty Minerals Ltd (NYSEMKT:NAK) management has, on many occasions, insisted on pursuing partnerships instead of buyouts.

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 $NAK and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

FuelCell Energy Inc (NASDAQ:FCEL)

Is Westport Fuel Systems Inc (USA) (NASDAQ:WPRT) Topping Out?

Westport Fuel Systems Inc (USA) (NASDAQ:WPRT)

The Q2 2017 financial release by Westport Fuel Systems Inc (USA) (NASDAQ:WPRT) supported a two-day run that moderated in the last half of today’s trading day. On Monday WPRT stock ended trading around $1.90. On Tuesday the stock gapped higher to open and ended at $2.20. WPRT shares gapped up to open again Wednesday morning and quickly hit $2.39 when sellers stepped in and proceeded to take the stock down throughout the day. WPRT stock closed at $2.23. Volume was about 3.5 times the daily average.

Westport Fuel Stock Chart:

Westport Fuel Systems Inc (USA) (NASDAQ:WPRT)
One month stock price chart for WPRT

Westport Fuel Systems Inc (USA) (NASDAQ:WPRT) is a transportation green technology company. Westport develops, manufactures, and markets clean-burning fuel systems and components. The company wants to change the way the world moves in a manner that creates value for their employees, customers, investors, and benefits the environment. Westport operates globally in more than 70 countries.

Westport Fuel Systems Inc (USA) (NASDAQ:WPRT) reported a Q2 2017 adjusted net loss of (-$0.12) per share from continuing operations. That loss was less than the street’s expected (-$0.15) loss and is likely what sent WPRT shares higher. Adjusted net income was reported at $0.04 per share. Total net loss from continuing operations amounted to $13.3 million. The reported net income for second-quarter 2016 was $3.4 million. Westport Fuel Systems posted Q2 consolidated revenues of $62.1 million, up 66.9% for the same period of the previous year and $7.1 million more than the consensus estimate. Growth was primarily driven by the addition of Fuel Systems’ revenues. Q2 consolidated gross margin increased to $15.8 million (25.4% of sales) from $8.2 million (21.9% of sales) recorded in Q2 of 2016. The improvement in gross margin came on the back of the Fuel Systems’ merger. Consolidated adjusted EBITDA amounted to a negative (-$5.3) million, compared with a negative (-$11.5) million in Q2 2016.

Westport Fuel Systems Inc (USA) (NASDAQ:WPRT) is up over 97% YTD, and up over 33% for the year.

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 $WPRT 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.

Atacama Resources International Inc (OTCMKTS:ACRL) Rallies

Atacama Resources International Inc (OTCMKTS:ACRL)

Atacama Resources International Inc (OTCMKTS:ACRL) rallied 30.43% in Tuesday’s trading session as investors reacted to the outcome of the company’s annual general meeting and prepayment of a convertible promissory note. The meeting held on August 11, 2017, saw the company detail its revenue projections for the year as well as provide corporate highlights.

Atacama Resources International Inc (OTCMKTS:ACRL)
One month stock price chart for ACRL

Tuesday’s rally did little to reverse a strong downward trend that has pushed the stock to this year’s low. The stock has underperformed the overall industry after dropping from March highs of $0.45 a share.

Atacama Resources International Inc. (OTCMKTS:ACRL) bills itself as a consulting company, focused on providing services to companies and individuals participating in the mining industry. The company also manages actual mining operations. Its 40 mining claims include a 1,680-acre mine in the Kirkland area of Ontario. In addition, the company owns and sells smartphone applications.

 Smartphone Apps Push

During the annual general meeting, Atacama Resources International Inc (OTCMKTS:ACRL) detailed a new smartphone app slated for release early next year. Dubbed SeniorGuard, the new app should strengthen the company’s suite of safety-driven mobile applications front that is currently made up of the Good2Drive app.

Good2Drive mobile app is designed to test driver’s cognitive alertness before they get behind the wheel in cars. The app monitors impairment to driver’s judgment which may be caused by alcohol, medical condition prescription, and illicit drugs. The mobile app is currently available in iTunes and Google Play stores.

Stock Promotion Concerns

Due to the high volume of shares traded, Atacama Resources International Inc. (OTCMKTS:ACRL) says it recently carried out an internal investigation to ensure that all the company’s officials and directors comply with SEC and FINRA rules. The audit came after the company was informed about possible illegal stock promotion activities.

Atacama Resources International Inc (OTCMKTS:ACRL) has since refuted claims of stock promotion activities by reiterating it had no involvement or knowledge of any material posted with regards to the same.

In addition, the company says it prepaid in cash a convertible promissory note late last month, which will now be converted into shares this month.

“By recent board action, the company policy will be, if at all possible, to prepay convertible notes prior to any conversion to ACRL shares. ACRL was not required to convert several million shares as the result of the prepayment,” Atacama Resources International Inc (OTCMKTS:ACRL) in a statement.

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 $ACRL 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.

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF)

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) Tanks As Q2 Net Loss Widens

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF)

Shares of SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) shed 17.81% as investors reacted to a wider than expected second quarter net loss. The precious metal company says it generated a net loss of (-$0.6) million for the three months ended June 30, 2016, compared to a net income of $0.2 million for the corresponding period last year.

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF)
One month SGSVF stock chart

Net loss for the first six months of the year came in at ($2) million compared to a net loss of ($0.4) million for the corresponding period last year.

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) has been on an impressive run having rallied from lows of $0.70 a share as of the start of the year to highs of $1.90 a share this month. Tuesday sell off threatens to bring to an end the bullish run that has seen the stock trade in a tight $1.45-$1.77 a share trading range. The stock should find immediate support at the $1.34 mark below which it could tank to $1.16 a share.

The precious metal company engages in the business of acquiring, exploring and development of mineral resources across Canada. The company owns 100% interest in the Back River Gold Project located in Southwestern Nunavut Canada as well as the silver royalty on the Hackett River.

SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) attributes the wider than expected second quarter net loss to lower sales of Pure Gold Mining Inc. this year compared to last year. The company ended the second quarter with cash and cash equivalent of $36.6 million.

Mining Activities

Despite the massive loss the company’s chief executive officer, Bruce McLeod says they achieved a lot as they continued to advance the Back River project through basic engineering and optimization studies.

During the quarter, the company completed its first phase exploration drilling program at the Goose property.

“In addition, the exploration success we had at the Goose Project this spring has provided opportunities to extend the mine life of the project. In particular, grades at the Vault Zone are more than double the average grade of the Back River resource and could offer opportunities to positively impact Project economics,” said Mr. McLeod.

Following the successful first phase exploration program, SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) intends to expand its summer drilling program, focus this time being on the Vault zone.

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 $SGSVF and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF)

Is NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) A Buy After 500% Rally?

NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF)

Shares of NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) were up by 26.05% days after the mining company announced the acquisition of further interests in Karratha region, Western Australia. The company with its Australian subsidiary has signed an option agreement to acquire certain tenements.

NOVO Resources Stock Chart:

NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF)
One month stock price chart for NSRPF

Novo Resources Bullish Run

NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) has been on an impressive run since the start of the year, its shares having rallied by more than 400%. The bullish run that started in June shows no signs of slowing down as the stock continues to trade at the upper end of its $2.94-$3.70 trading range. The stock is also closing in on its 52-week high of $3.70

The mining company with its subsidiaries evaluates acquires and explores gold properties in Canada, Australia, and the United States. Its lead project is the Pilbara, Paleoplacer project in Western Australia. Build on a significant land project covering 10,000 sq. Km. Novo Resources also owns 100% interest in the 2 sq. km in the Tuscarora Au-Ag vein district Nevada.

Mining Operations

The mining project where the company has acquired further interests consists of seven prospecting licenses, five exploration licenses, and six prospecting license application. NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) is to make an option fee payment of 500,000 Novo common shares as part of the option agreement signed with the Optionor.

Novo will have 12 months from the signing of the agreement to decide whether to exercise its Option and purchase the Pipeline project outright. The Optionor is to retain non-gold rights to the Pipeline Project as well as 1% of gross royalty on production from the project.

NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF) has already announced its first bulk sample from the Karratha Gold project. The company has since announced plans to work with Nagrom to generate a refined protocol for sampling and analyzing the gold mineralization in the project. There are also plans to undertake a full systematic trench bulk sampling at Purdy’s reward, which is part of Karratha gold project in West Pilbara.

“Not only was the grade of this bulk sample encouraging, the Steinert XSS T sorting machine proved highly efficient at picking rock with coarse gold particles. We see value in its use for helping determine grade of this very unusual mineralization as well as potential use for future commercial applications,” said Dr. Quinton Hennigh, Chairman, President, and Director of NOVO RESOURCES COR COM NPV (OTCMKTS:NSRPF).

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 $NSRPF 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.

Abraxas Petroleum Corp. (NASDAQ:AXAS)

Abraxas Petroleum Corp. (NASDAQ:AXAS) Gets Some Relief from Sell-Off

Abraxas Petroleum Corp. (NASDAQ:AXAS)

Abraxas Petroleum Corp. (NASDAQ:AXAS) stock is up over 9% in early trading after shares fell yesterday following the company’s Q2 earnings announcement. On Tuesday, Abraxas reported revenues of $13.2 million – $3.5 million below expectations. Q2 net income was $7.2 million, a positive result after the company posted a Q2 loss in 2016. Abraxas, based in San Antonio, TX, said it had per share profit of $0.04 cents. Earnings, adjusted for non-recurring gains, came to $0.01 cent per share. The financial results failed to meet analyst expectations which had earnings coming in at $.02.

Abraxas stock chart:

Abraxas Petroleum Corp. (NASDAQ:AXAS)
One month Abraxas stock price chart

Despite the adoption by Abraxas Petroleum Corp. (NASDAQ:AXAS) of a controlled flowback protocol on the recent Caprito completions, current production is averaging over 9,000 Boepd. As these two wells ramp up to expected levels, Abraxas expects to meet or exceed the Company’s originally forecasted 2017 exit rate of 9,500 Boepd in the coming weeks. Abraxas is adjusting the Company’s target exit rate to approximately 10,750 Boepd. Abraxas is adjusting guidance for 2017 to account for the Company’s current planned completion schedule and well performance.

Bob Watson, President and CEO of Abraxas, commented, “As expected, second quarter 2017 volumes dipped due to well shut-ins in the Bakken from offsetting completions. Unfortunately, we were also plagued by gas curtailments in South Texas and in the Permian, which negatively impacted the quarter. With the past now behind us, we expect to approach our anticipated year-end exit rate in the next few weeks. This bodes for a much stronger than anticipated second half 2017 production outlook as evidenced by our increased anticipated exit rate to 10,750 Boepd.

At the end of 2016, Abraxas Petroleum Corp. (NASDAQ:AXAS) stock was trading near $3.00 but yesterday shares closed at $1.61. YTD, AXAS stock is down over 37% but up almost 43% for the year. Analysts have given AXAS stock a consensus price target of $2.68.

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 $AXAS 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.