blog on NAGNorth American Gem Inc. (CVE:NAG) (PINK:NGEMF) hit the stock screeners after their share price shot up on no particular reason.Traders had their one day fun with NAG as the stock added 42.8% on Wednesday under a 2.6 million trading volume. That was a 9 times heavier trading activity than the 90-days average of 283 thousand.The company had no official news that could have caused such a price behavior. Trading was mostly concentrated in the morning as the share price gapped up and that indicates that buying pressure was likely caused by a short squeeze.nag_logo.jpgAlso the move didn't stand out from general volatility associated with the stock. The only difference was that it technically broke out. NAG price was in consolidation for most of summer 2011. However, the move outside an established price channel doesn't mean much in the current situation.North American Gem is an exploration stage company with rather weak fundamentals, thus their market cap of around $9.7 million is slightly too large already. For the quarter ended June 30, 2011 the company recorded: Book value of $2.8 million; Working capital of $550 thousand; Quarterly revenue of $12.96 thousand; Quarterly loss of $489.8 thousand; $478.6 thousand cash flow.Over the quarter NAG also issued $993.9 thousand worth of shares. This is important because the number of outstanding shares increased 8.2 times over the past year.The huge dilution rate comes from North American Gem's practice to acquire properties with partial payments in stock. Then again the company has limited operations and continues to rely on stock sales to raise working capital. That may further negatively impact the open market share price.