A short squeeze may be a risky maneuver but it can often lead to surprising results when some traders work in unison and drive the short sellers out of the market. That is what happened with the Houston Natural Resources Corporation (OTCMKTS:HNRC) yesterday as the stock ended up with gains of as much as 9.57% for the day.
On Tuesday, HNRC stock was up 9.57% to $0.34 with 96.7K shares, compared to its average volume of 255K shares. The stock moved within a range of $0.3110-0.34 after opening trading at $0.32.
It may now be a good time for investors to take a closer look at the company and make up their minds about the stock one way or another. It is a diversified energy company with varied operations and investments across the sector. Some of the companies in which the company has made investments include those in sectors as disparate as information technology, energy and healthcare.
Despite the short sellers in the stock, it should be noted that Houston Natural Resources Corporation may well be on the way up and the stock could continue on its upward journey. Back on August 31, the company announced that it expected its performance for the rest of the year to be strong. It projected that the revenues for the financial year was going to be $20 million to go along with EBITDA of $10 million.
The company further noted that in the third fiscal quarter alone it expected the revenues to touch $5 million and the EBITDA earnings to hit $2.5 million. Houston Natural Resources Corporation noted that the higher projection is owing to the higher earnings that it was going to bring from its portfolio companies.
HNRC stock is trading below the 20-Day and 50-Day Moving averages of $0.35 and $0.37 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.42.