Shareholders of PetroAmerica (PTA.v) might have some PTSD these days. It was just a few months ago that the stock jumped to 44c from 35c on heavy volumes, in what the always reliable CEO.ca called a “confirmed breakout.” Except it wasn’t so much a breakout as a pump.
The company announced earnings Aug 19, the stock did nothing the next day. Then the stock jumped on no news Aug. 22. And it really moved on Aug 25, when CEO.ca ran this story about Frank Giustra (or should I say, “Mr. Frank Giustra“?) owning a big chunk of PTA.v, and calling the stock’s move a “confirmed breakout” with “a new short term target of $0.50 and a longer term target of $1.00, according to our CEO Technician.”
A stock with average volumes around 1.5mln shares/day instead had 20 million shares of volume in 2 days. Woo hoo.
Then the confirmed breakout turned into confirmed wealth destruction. By October 9, with the OIL ETF down less than 10%, PTA.v had fallen more than 40%. I guess it’s just nice that PTA.v has held its 14c level so well the last few weeks, letting oil catch up with its drop.
One might be tempted to wonder if the state of his portfolio has anything to do with Giustra’s decision to
immolate suspend print publication of Modern Farmer?