Shares of TomCo Energy Plc (LON: TOM) are up 105% from their mid-May lows after buyers stepped in to push its shares higher amid a surge in global crude oil prices.
The oil mining company has not made any significant announcements during the period, indicating that the recent share price rally is primarily driven by positive investor sentiment.
Over the same period, TomCo has had a series of adverse events happen, such as the resignation of the executive director Robert Kirchner. The oil mining company was also recently issued a cessation order on its Greenfield Energy joint venture in Utah.
Regardless, buyers appear unmoved as the company’s shares continue to rocket higher, rising over 10% today.
TomCo is working with Utah's Division of Oil, Gas and Mining (DOGM) to have the cessation order lifted so that the Petroteq oil sands plant (POSP) at Asphalt Ridge can resume operation. The company issued a statement saying: “Greenfield strongly refutes the basis for the issuance of the CO and believes that it has been conducting operations in line with the site's existing permit held by Petroteq and the approved operational plan,”
However, TomCo has not issued any new updates on the cessation order, which indicates that it is yet to be lifted.
In the meantime, TomCO shares continue rising as buyers keep pouring in. Traders who do not have positions in the company may be best served waiting for a pullback before jumping in.
In the past, we have seen parabolic rallies sharply reverse their gains and plunge traders who bought near the top into massive losses. Traders who have profited from the move should be taking profits in anticipation of a pullback.
*This is not investment advice.
TomCo Energy share price.
TomCo Energy shares are up 105.12%% since mid-May rising from a low of 0.39p on 18th May to their current price of 0.80p.
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