North American Gem Inc V.NAG

blog on NAG

[Porsche928S4]

North 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.

[riddlethis]

This blog is only an annon. techincal stock analysisand does not take in account their current work in Sask.I also doubt there would be a "short squeeze" on a stock trading at a .03 - .035c level.This blog analysis would be better suited for higher priced stocks.2.6 million shares is ALOT of shares to buy in a few hours, with no news,which leads me to believe someone is

[kelso01]

you'd think with an investor taking a position in NAG that some people wouldn't sell. Guess they can't take a hint. Oh well their loss.

[SUCYN]

some people saw the coal cores and the word spread...Thus investors took a position...we could see 7-10 cents very soon...JMHO

[nemo3]

How did you come across this info SUCYN?

[kelso01]

i wouldn't be surprised. I'll wait. Then the ones that sell can buy mine back at a higher price.

[SUCYN]

I posted ...JMHO...no info...But the drillers and the lab people know what they have seen...Very easy for the IR people to tip off some large investors...again JMHO..

[kelso01]

I'm very inclinded to believe that there are a ton of coal deposits around the hudson bay area. NAG maybe sitting on a gold mine.