Magnum Hunter Resources Corp (OTCMKTS:MHRC) Continues To Recover
The oil crisis caused quite a lot of troubles for quite a lot companies and Magnum Hunter Resources Corp (OTCMKTS:MHRC) is one of those companies. Just a couple of months ago MHRC were a NYSE-listed company trading above $1 per share. Now they have little to boast about.
The share price dropped below the minimum required by the NYSE, Magnum were delisted from the national exchange and the company was moved to the OTC market. A heavy blow but still MHRC were able to stabilize around the 30 cents per share mark. When the latest quarterly report was submitted on November 9 however it unleashed another massive sell off – on November 11 MHRC registered a new 52-weeks low of just $0.016.
It seems that some investors found these unprecedented lows of the stock as an enticing entry point and for the last two sessions MHRC has managed to recover some of its losses. Surging by 21.43% on Tuesday followed by a 21.57% gain from yesterday allowed the stock to climb up to $0.031. Will the positive performance continue though?
Compared to the rest of the OTC companies MHRC‘s balance sheet definitely shows some rarely seen numbers but as the reaction the quarterly report might have already told you picture is still rather grim. As of September 30 the company had:
• $6.5 million cash
• $40 million total current assets
• $1 billion total current liabilities
• $33.6 million total revenue
• $113 million net loss
Less than two months ago MHRC had a massive working capital deficit and an accumulated deficit of over a $1 billion. The generated revenues for the period may seem impressive but compared to the same quarter last year they represent a decline of over 50%. The net loss for the first nine months of the year amounts to more than $240 million.
The chance to trade an ex-NYSE stock might be quite exciting but caution is still required. The volatility of the stock must be taken account before putting any money on the line.