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Tag: Torchlight Energy

  • How Come The Torchlight (TRCH) Stock Grew 7% After Hours?

    Torchlight Energy Resources Inc. (TRCH) shares were up 7.06% to $10.62 in after-hours trading at last check. During Monday’s regular trading session, Torchlight gained 58.21% to close at $9.92. The number of TRCH shares traded was 378.95 million, compared with an average of 26.41 million per day over the past 50 days.

    In the last year, TRCH shares have increased by 2481.99%, and they increased by 177.09% in the past week. For the past three months, TRCH stock has advanced by 333.19%, while over the past six months; it has declined by 2059.34%. A total of 129.61 million shares are outstanding, and the market value of the company currently stands at $1.24 billion. On extending the deadline for its business combination transaction, TRCH stock has been gaining traction.

    What was that move all about?

    Located in Plano, Texas, Torchlight is an Exploration and Production (E&P) company with a high growth rate. In order to achieve its primary objective, TRCH purchases and develops domestic oil fields. As an explorer, TRCH targets well-established plays such as the Permian Basin in West and Central Texas.

    Yesterday, Torchlight announced that TRCH and Metamaterial Inc have extended the date by which the business combination transaction (the “Arrangement”) needs to be completed to June 30, 2021.

    • By extending the record date until June 24, 2021, the special Series A Preferred Stock dividend, declared on June 14, 2021, can be paid on June 25th.
    • Dividends will be paid on June 25th for Series A Preferred Stock.
    • In order to close the Arrangement by June 30, 2021, TRCH will need to obtain approvals from required authorities.

    In contrast, Bloomberg wrote about the sudden rise in the Torchlight stock price, that its shares more than doubled in a week following a discussion on Reddit about a possible short squeeze.

    In December, Torchlight announced plans to merge with Metamaterial, a Canadian company noted for its expertise in “complex films and metamaterials.”

    Will rising demand boost TRCH?

    Oil prices have rebounded from a collapse in demand caused by the pandemic, which may help Torchlight (TRCH) to increase its share price. Nevertheless, TRCH isn’t turning a profit like the US shale industry is, which is poised to generate some $30 billion of free cash this year. In its most recent filing, TRCH reported that its oil and natural gas revenues for the first three months of 2021 were 97% lower than they were a year ago.

  • Torchlight Energy Resources, Inc. (TRCH) Stock Continues Long-Term Upward Trend Amid Market Dominated by Meme Stocks

    Torchlight Energy Resources, Inc. (TRCH) Stock Continues Long-Term Upward Trend Amid Market Dominated by Meme Stocks

    Torchlight Energy Resources, Inc. (TRCH) stock prices were up by 3.65% as of the market closing on June 11th, 2021, bringing the price per share up to USD$3.12 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock rise by 7.37%, bringing it up to USD$3.35.

    Meme Stock Craze

    Several of the recent trading days having been dominated by the meme stock phenomenon, wherein members of the online social media community, Reddit, collaborate on pumping “meme” stocks that have no apparent rational basis for being invested in. These underdog companies, sometimes on the brink of collapse, are resuscitated (often only temporarily) by the fortuitous whims of the Reddit-driven retail investors. With no recent news or fundamental developments that justify significant upswings in stock prices, TRCH, too, seems to be the latest target of the meme stock craze.

    Promising Track Record

    Interestingly, however, this seems to be a long-term trend for the company, rather than a short-term surge in price. The past year has seen the stock price skyrocket by 576%, with the last 3 years representing a 90% increase in the value of the company’s equity. The most recent month had seen a 13% increase, with the price rising through both the latest trading day and the subsequent pre-market hours.

    Shaky Foundation

    In their recently disclosed financial statements, TRCH reported a meagre USD$111,230 in revenue over a 12-month period. This fails to signal confidence in the management and the execution of their business plan. Nevertheless, the stock has enjoyed consistent growth in stock price. It seems much more likely that investors are banking on the company’s untapped potential rather than its accomplishments. This is atypical because of the risks involved. Investors might be hoping for the company to stumble upon fossil fuels with an exploration program before it finds itself to have run out of money.

    Sustaining Growth

    Pinning hopes on potential future developments entails a very probably need for infusions of capital to sustain the company until it can support itself. This puts them at the mercy of capital markets, where share price itself impact the value of the shares themselves, as determiners of costs of capital. From here, companies can go on to execute their intended strategies and provide returns on investments made; or companies can suffer heavy losses and eventual de-listing. TRCH has consistently rewarded its investors who took the high risk.

    Future Outlook for TRCH

    Armed with a solid liquidity position from their private placement, as well as the fortuitous surge in the value of their equity, TRCH is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher in more organic growth over the long term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.