Share price is now sitting at $0.015. I wonder why they don't even have there website up and running just yet. Anyway this article is from Feb 7, 2011. I find it interesting.

Any thoughts? I've been holding for a while now, though my gut tells me otherwise...

It looks like the shares of Opal Energy Corp. (CVE:OPA, OPA message board), (PINK:OPAFF) have made a huge speculative rise on the TSX Venture Exchange (CVE). This seems to be the only possible explanation for last Friday's surge of the stock. There is nothing to support the big price and volume spikes witnessed on the CVE. Most of the available data do not in the least speak in favor of the company.

Just the opposite. Given the known facts, some investors might just ask themselves whether Opal Energy will be able to continue functioning properly. We may start with an announcement from the end of last December, where Opal informs that all of its oil and gas exploration leases have ... expired. We all know what this means. Without extending the leases, the future activity of the company remains under question.

There is more negative news to come. It derives from the latest financial reports. They show that Opal did not pay any salaries in 2010. After all, what could we think of a company that does not pay anything to its employees? The other figures in the financial statements for the third quarter of 2010 also provide rather discouraging sentiment:

• there is a net loss of $283K for the quarter mentioned;

• as at Sep. 30, 2010, Opal had a working capital deficit of $61 653 and a cash balance of only $192K;


In addition to the weak and fragile financial position of the company, we could mention its non-functioning web site. Nowadays, in the Internet era, it is a huge disadvantage indeed. This, together with the lack of enough information about the future company plans, is probably appalling to many investors too.

Then suddenly, out of nowhere, came last session, during which OPA jumped by 75% on a really shocking turnover of over 20.7M shares traded. This is more than a clear proof that things are not as bad as they seem for Opal Energy. Yesterday, the company's shares even took the honourable first place for being the most demanded item on the CVE.

This shows Opal maybe holds some hidden and unseen at first glance aces in its sleeves. The logic, however, speaks that this might be just a temporary speculative rise of the stock. The logic implies that probably the shares have no solid base and potential to go further up. Though the stock markets are sometimes illogical, sooner or later it is the logic that drives the behavior of stocks, especially on the long-run.