New Concept Energy, Inc. (NYSEMKT:GBR), an oil and gas nano-cap, has surged more than 80% on the back of technical momentum buying. On March 24, shares surged to $1.62 from $1.02 per share, and evidently that surge has caused more momentum traders to buy in.
As it stands, there is no fundamental reasoning for the bullishness as WTI futures are in the red by over 1.6% due to last weekend’s non-bullish committee meeting between OPEC and non OPEC oil ministers. In addition, all three major indexes are lower as profit taking in the financial sector continues. There has also been no press release published by New Concept Energy in recent days.
According to its website, the company’s current properties are in the Appalachian Basin and the Utica Basin and New Concept Energy, Inc. (NYSEMKT:GBR) is seeking to buy controlling interest in projects that meet its parameters such as ‘Onshore and offshore projects with current production or shut in wells’, ‘Projects should be in the $10M to $30M range’, and’ Low to minimum risk exploration projects’.
What Does The Smart Money Sentiment Say?
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Since New Concept Energy, Inc. (NYSEMKT:GBR) is a very small stock (with a market cap of around $10 million), none of the top 742 elite funds that we track owned shares of the company at the end of the fourth quarter.
The Bottom Line
Although crude prices and many of its peers are down, New Concept Energy, Inc. (NYSEMKT:GBR) has surged this morning due to technical reasons. The combination of momentum traders chasing more momentum and the company’s small float has created today’s bull move. How long the bullishness will last is anyone’s guess.