Investors in PetroAmerica (PTA.v) may be feeling a little PTSD lately. Just a couple of months back, the stock surged from 35c to 44c on substantial volumes, dubbed a “confirmed breakout” by the always trustable CEO.ca. But this wasn’t a breakout; it resembled more of a pump.
The firm reported earnings on August 19, but the stock barely moved the following day. Then suddenly, on August 22, it jumped without any news. The real action happened on August 25, when CEO.ca published this article about Frank Giustra (or is it “Mr. Frank Giustra“) owning a significant amount of PTA.v, claiming the stock’s move was a “confirmed breakout” with a short-term target of $0.50 and a longer term goal of $1.00, as stated by our CEO Technician.
A stock typically trading around 1.5 million shares per day unexpectedly moved 20 million shares in two days. Wow.
However, what began as a “confirmed breakout” quickly turned into a scenario of significant wealth loss. By October 9, despite the OIL ETF being down less than 10%, PTA.v had plummeted by more than 40%. It’s at least a relief that PTA.v maintained its 14c level over the last few weeks, allowing oil prices to catch up with its decline.
One might question if Giustra’s portfolio performance has influenced his decision to discontinue the print version of Modern Farmer?
