FinancialContent is the trusted provider of stock market information to the media industry.
April 27, 2011 at 11:45 AM EDT
High Plains Gas Inc (OTC:HPGS) Stock Is Fired
Two days before the closing date of the so called "Huber Purchase Agreement", High Plains Gas Inc ( OTC:HPGS ) stock is fired not only by expectations for forthcoming news. Though the event will evolve huge shares' rush, these days a paid for services providing stock promoter is filling fuel to the fire. Now, the fundamental question is why? The total budget of the stock promotion is $35 thousand. In comparison with the reported by the company revenues, it does not seems to be so big. Looks like for the paying third party of this promotion the amount is also acceptable. Since yesterday, following each percent of share price increase, a stock marketing newsletter is presenting the "Growing Like a Magic Bean" HPGS. Although the fact that two years ago the growing bean was worth up to $35 per share, nowadays it has the chance to rise gain. Today, HPGS opened the trading session at $1.06 per share with a green fire and hope that today it will rise within the trading session as well. The previous trading session was marked with the classical for a promoted stock scenario with a huge share turnover and a price decline within the day. It is a fact that the recently announced by the company annual report may be a good reason to expect increased demand for the company's shares. Still, the "unexpected" investor awareness campaign and the absence of news related to the operations of High Plains Gas Inc. up to yesterday convinced some investors to be more conservative. In a month time, though the wide trading range, the price of HPGS is swirling around $1. In the beginning of this February, the company signed a Purchase and Sale Agreement with J.M. Huber Corporation ("Huber Purchase Agreement"). According it, High Plains Gas Inc. agreed to purchase approximately 313,000 net acres of leasehold and 2,302 wells in the Basin for $35 million. In March 2011, the company signed an amendment to the above agreement, extending the closing date to April 29, 2011. During the same period, HPGS made one more important step, this time related not as much to its operations, but to the dilution of its own capital. The company's authorized common stock is now 250 million shares and includes a class of 20 million shares of preferred stock. So, nothing strange that on news about flooding the market with shares HPGS stock, even being valuable is expected to lose in value and the stock promotion may support the HPGS's growth, though on the short term.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here