This past Friday, there were many stocks that managed to emerge as significant gainers and one of those was that of Houston American Energy Corp (NYSEAMERICAN:HUSA). It attracted significant attention on Friday and ended the day with gains of as much as 16% as a consequence.
Trading Data
On Friday, HUSA stock surged 15.93% to $1.31 with more than 807k shares, compared to its average volume of 287K shares. The stock moved within a range of $1.1500 – 1.3200 after opening trade at $1.15.
Houston American Energy Corp. Announces Redemption of Preferred Stock
While the gains may have been significant it is also necessary to point out that there was no news about the company on Friday and the rally may even come across as a bit speculative to many investors. As a matter of fact, there has been no news about the company for almost a year.
The last time any news emerged about Houston American Energy was back on March 4 last year. At the time the company announced that it had successful in completing the redemption of the 12% Series A Convertible Preferred Stock and the 12% Series B Convertible Preferred Stock.
While the announcement from the company at the time was a major one, it should be noted that it is quite unlikely that the latest rally was triggered by that particular event. It remains to be seen if any fresh news emerges about the company or not in the coming days.
Key Quote
John Terwilliger, President and Chief Financial Officer of Houston American, stated “Proceeds from the sale of shares under our ATM program has positioned us to meet our expected capital requirements for the foreseeable future while also providing adequate capital to redeem our outstanding preferred stock, eliminating approximately $230,000 of annual dividend obligations. With our now simple debt-free capital structure and cash on hand, we are well positioned to fund our efforts to acquire, drill and develop prospects with a view to growing our reserves and production.”
Technical Data
HUSA stock is below the 20-Day and 50-Day Moving averages of $1.31 and $1.46 respectively. However, the stock is trading below the 200-Day moving average of $1.74. The stock is up 10% in the past week.
