Mercom Oil Sands (MMO:L) Takes a Breather, before its next leg up!
Fellow Traders,
Mercom Oil Sands (MMO:L), which trades on the London AIM market, fell to a round of profit-taking this morning, finishing the day off £0.001 to £0.008.
Mercom Oil Sands (MMO:L) shares had risen more than 57% year-to-date to a high of £0.0117 on March 28, before the London market closed for the extended Easter holidays. When trading resumed Tuesday, traders decided to take profits.
Mercom is seeking to conclude a deal with Nordic Petroleum for a 50% stake in Nordic's leases in the Athabasca Oil Sands in Alberta Canada. Mercom has raised more than US$3.3 million in cash which management plans to use to pay for its share of the leases and to fund an initial exploration program.
According to early geology reports, there could be as much as $1.8 billion worth of heavy crude oil in Mercom's share of the Nordic leases.
Traders have been buying Mercom on the theory that Nordic is running out of money and needs to conclude some sort of deal with Mercom on the leases. There has also been talk of a minority shareholder in Mercom setting up a company to acquire Nordic and then have the acquiring company bought by Mercom. Nordic is running out of cash and needs the cash infusion from Mercom to make its investment in the oil leases work.
Although there has been no news on the deal, today's pullback represents a great opportunity for investors to get in on Mercom shares while they are still under £0.01. Don't miss out on your opportunity to buy this cash-rich oil sands developer while it is still cheap.
Investors can trade on London's AIM market through most large, online brokers including Charles Schwab,Fidelity, and many others. However, trades on the AIM market are routed through these brokers' international trading desks so you may have to call your brokerage to make the trade!. All shares traded on AIM are denominated in pounds Sterling. Currently, one pound (£1.00) equals US$1.51. Mercom shares trading at £0.0058 equals US$0.0088 per share (£0.0058 x 1.51 = $0.0088).
The London Stock Exchange, which operates the AIM market, is very investor friendly. AIM is like Londons equivalent to NASDAQ's small cap listings. Investors can easily find lots of information on AIM-listed companies, including corporate press releases.
Happy Trading!
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