Allana Potash Corp (CVE:AAA) Stock Surges Solely on Potential

Today's trading session will show whether Allana Potash Corp (CVE:AAA, AAA message board) stock will change the upward direction to a trend. AAA entered the market with the next in row 8.51% price increase.

These days, a corporate presentation and a press release about some diamond drilling going on on a company's project pushed ahead the optimistic mood of investors.

For three consecutive trading sessions, AAA is surging confidently up. Since last Thursday, when AAA shares closed without a change for the last time, they added 13.25% to their value.

As opposed to the weak volume traded, this week AAA stock was demanded with an almost doubling average volume, like in an attempt to show that there is potential for new investors to enter the "trading floor" and make more hot bids.

Being far away from its 52-week high at $0.60 per share, the rapid growth of AAA also suggests that maybe there is still room for a share price increase.

In the above mentioned company's presentation, AAA states that it has the potential to become one of the potash producers with the lowest costs in the world. One of the most promising statements there, is that Allana is negotiating an Off-Take Agreement to partner with China Mineral United Management (China Mineral) to develop its Ethiopia Potash Project.

Looks like the fashionable China issue also added some value to AAA stock last days.

As of today, there are no filings in SEDAR related to the above mentioned agreement.

The company's last financials are also in support of the investor optimistic mood and present potential. Allana is one of the rarely met companies with so huge plans that have so minor debt on their balance sheet. Of course, this may also raise some questions, since the company has presently no revenues and utilizes cash from the issuance of stock for all its operations.