Timeless Capital Corp V.TLC

Tension Rises As Anglo Canadian Oil Corp. (CVE:ACG

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Anglo Canadian Oil Corp. (CVE:ACG) (PINK:AGDNF) now trades so low that any potentially bullish session generates significantly higher trading volumes.ACG got bulls excited after it head up on a significant trading volume this Monday. That was a correction that followed the gap made by the end of November.Such an activity indicates the stock still has a chance to return to its 50-day moving average which the downtrending price has now deviated from.ACG stock took a dive after Anglo Canadian announced an update on operations on November 25. Back then the company said to have suspended one well after it was deemed uneconomic. The company simultaneously abandoned further exploration on the Montney zone.anglo_logo.jpgThe stock's value has since fallen so much that their market cap is currently at half the book value, but some facts oppose such a valuation. Financially the company is still in a favorable position with comparatively small debts and substantial cash position of $10.3 million. Furthermore, despite the failure on Montney zone they still have Nordegg and Bakken plays to explore. Angla Canadia also has a small production of 20 boe per day.On the bad side, company struggles with large operating expenses which eat up most of the cash gained from oil sales. Also, the degradation of cash position is partially offset through sales of capital stock. In result the company had a stock dilution rate of 59.5% over the past year.