Contributed by: Nikolay Tomov
Date: Mar 29, 2011
"How high can we go on the stock markets?"
Perhaps, this is what managers of Brownstone Energy Inc. (CVE:BWN, BWN message board) have been trying to check out these days. Probably many traders are asking themselves the same question, especially those who have a larger interest in this company and have decided to invest in its shares.
Yesterday, the stock went really high on the TSX Venture Exchange (CVE). BWN moved almost 15% up, on a volume of over 2.67M shares - four times the average turnover. What is more, the price hit a record level for the last two years, climbing to $1.24 during the session.
Within a week, BWN has gained about 22%. Last Tuesday, it closed at $0.95; yesterday, the stock ended the trading at $1.16.
The good thing is that there are factors that could support further appreciation of the shares in the future. Brownstone looks financially solid enough. In the end of last year, the company had more than $23M of working capital and $8.7M in cash. These figures do not take into account the $28M financing that Brownstone completed some twenty days ago.
There is more positive to come. The company is run by the well-known professional Mr. Sheldon Inwentash - he is the Chairman of the Board of Directors and CEO. This is a very competent man, who has over 25 years of investing experience. He is also a Chief Executive Officer of several other companies such as Mega Uranium Ltd. and Pinetree Capital Ltd. The presence of such a man in the corporation is surely an advantage.
In addition, Brownstone reported a net income of $3.12M for the last quarter of 2010. Thus, the company is well ahead many other Canadian firms on the stock market that are still in the development stage and have not earned a single dollar by far.
Brownstone_-_Logo.pngIf there is something negative to be said about Brownstone, this is maybe the rise in the liabilities and in the operating expenses as compared to the last quarter of 2009.
In January, the company changed its name from Brownstone Ventures Inc. to Brownstone Energy Inc. Some believe that a new name may also bring new success and glory with itself. Brownstone is surely doing well under the new name. The company only needs to finish the update of its website.
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