The 88 Energy share has attracted quite a bit of attention in recent weeks, as it was able to increase its price by more than 100 percent at times between mid-June and the beginning of July. Responsible for this were some more or less fortunate coincidences, which currently inspire investors’ fantasies.
There are, for example, the rising oil prices, which significantly improve the prospects of the oil explorer and give hope for good business in the future. After the OPEC states recently broke up in dispute, experts believe that crude oil prices will rise even further. Basically, not a bad thing for 88 Energy stock.
Are the biggest worries gone?
In addition, 88 Energy just recently announced that it had sold tax credits through its Acumulate Energy Alaska subsidiary. Who the buyer is was not named, to be sure. Nevertheless, 18.7 million US dollars are said to have been flushed into the coffers in this way.
This reassures many observers who have long been very concerned about the company’s liquidity. The management is now even talking about being debt-free and having almost 15 million Australian dollars in reserves. These are likely to be urgently needed for further operations.
88 Energy stock is a bet
As good as all this sounds, fundamentally little has changed with 88 Energy stock. Whether the company will eventually turn a profit is anyone’s guess. The stock is currently driven solely by hopes and dreams, which could easily vanish into thin air at some point.
This and the share price in the single-digit cent range ensure that investors have to deal with enormous volatility. Price changes in the double-digit range are not uncommon and things don’t always go up, even in good times. Yesterday, for example, the share suffered losses of 10.5 percent.