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Mystery Movers: Red Pine Exploration (V.RPX) up 230% in last week

Chris Parry Chris Parry, Stockhouse.com
2 Comments| October 31, 2013

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It may only be moving half a cent per day, but Red Pine Exploration (TSX:V.RPX, Stock Forum) has consistently been among the highest volume shares traded on the Venture Exchange over the past week, clambering up from the floor like Rocky wanting one more crack at Apollo Creed.

Translated: It’s gone from $0.015 to $0.050 since the 25th of October, a rise of 230%.

While 8 million shares of a 5-cent stock ($400,000 in value) isn’t a seismic market shift that will see indexes burn and analysts rip their bow ties off in horror, it’s a significant move for a company that, until recently, was looking unloved.

Sure, they’re exploring and announcing results.

And yes, they’ve brought in fresh blood, appointing a new Chairman, President, CEO, CFO, and COO – in fact, there’s been so much change at the C-Suite level, the paint being used to reallocate parking spaces should be a line item in the annual budget.

And the company has contracted ClearView Geophysics to complete an IP survey to develop targets for drilling later in 2013.

These are all healthy moves. But they all happened a while ago and the Mordor-like roar of this fast rising stock could only be heard over the past week.

So what’s the deal?

Stockhouse Bullboarders have some ideas, from good news on the way to a random pumper firm figuring Red Pine as a good target for a quick profit. Others are seeing it as a gift from the profit gods that will soon reverse.

Others still think the news above is just good enough to take a company that was nowhere for a long time and shift it into the undervalued column going forward.

Another possibility? There’s unconfirmed buzz that Red Pine has staked some land adjacent to Zenyatta (TSX:V.ZEN, Stock Forum). Take that with a grain of salt unless it’s confirmed by the company, and perhaps even if it is, depending on whether you think Zenyatta is sweatpants or trousers.

But while you ponder that, know that there have been 17 insider buys of V.RPX from directors of the company in the last 12 months, totalling 2.5 million shares (with one of those being a 200,000 share director purchase on the 17th of October) - and not a single share sold off.

Not one.

Again, 2 million shares of this dog, for most of the year, would have bought you a time share in Somalia but not the airfare to get there, so don’t take that as the second coming of GoldCorp.

Whatever the cause, the stock shifts are no longer an isolated spike – they’re now consistent and ongoing. In fact, early Thursday, the stock climbed as high as 6.5c before profit-taking.

Which means, right now, it’s on the Mystery Movers watchlist.

FULL DISCLOSURE: I don’t own Red Pine Exploration stock because the trade commission would remove 900 million shares from my buying capacity and I just bought some gum.


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