What’s going on with Groundstar Resources Ltd. (GSA.V)?

The stock price of the Calgary-based light oil and natural gas company had been hovering between two and three cents for the past six months. The Wednesday morning opening saw it at 2.5 cents and then, on no news, suddenly it began spiking as high as five cents before settling back down to its more usual three-cent level by the closing bell. Total volume on the day was 4.3 million shares, whereas its average volume is under 200,000. Very odd indeed.

In the aftermath, Groundstar issued a news release which revealed it was utterly clueless as to why this happened.

“At the request of the Investment Industry Regulatory Organization of Canada, the Company wishes to confirm that management is unaware of any material change in the Company’s operations that would account for the recent increase in market activity and knows of no reason for the unusual trading activity.”

The company, which began as Gramara Mercantile Corporation Ltd. in 1968 and changed its name to Groundstar Resources in July 1973, did not mention whether it would launch an investigation. It hadn’t seen this kind of action since Stephen Harper was Canada’s prime minister, so this situation bears watching as the company is due to report third-quarter results later this month.

 

Written By:

Bo Ramone

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Tags:
Energy
Oil and Gas
Resources
stock price
unusual trading activity
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