Prospect Global Resources Inc. (NASDAQ:PGRX) Trading Up after Rights Offering Extension

Posted by Chris Bell June 17, 2013 0 Comment 1344 views


Northern, WI 06/17/2013 (GDPInsider) – Prospect Global Resources Inc. (NASDAQ:PGRX) started the day at 0.16, a solid 0.02 cents above its previous close of 0.14 and quickly began its rally. The stock has since gained 14.04% in market valuation and has seen over 303,000 shares trading hands. PGRX has a range of 0.1352 and 0.17. Analysts have set a target price of 3.50 for the stock and market cap stands at $11.62 million.

The stock has a 52-week range of 0.13 and 5.25 and since June 14, PGRX has rallied 30.23% on its 52-week low. The gains made in today’s market valuation follows on from the +7.69% increase recorded on the last day of trading last week. Investors have steadily helped to push PGRX’s gain potential into focus and the stock is now level with its second resistance point of 0.16.

PGRX hand announced a rights offering which was set to expire on June 06, 2013, however, the company announced on June 13, that stockholders has until 5:00 pm EST on June 17, 2013 to take up the offer. PGRX issued a special notice for stockholders whose shares are held through a brokerage account, bank or other nominee, will need to provide investment instructions to the nominees no later than 5:00 pm EST on the said expiration date.

PGRX is heavily engaged in the exploration and mining of natural resources and has operations in Holbrook Basin of eastern Arizona. The company seems to be benefiting from a general upswing in the mining sector where other companies have delivered similar performances in market valuation.

The company’s technical chart has shown consistently flat valuations since March so uptick is a welcome sign for investors. The stock is trading 17.94% below its SMA20 and 37.02% below its SMA50.

RSI is trending towards more neutral territory and currently sits at 37.22. PGRX expects a 33.30% increase in EPS for this year and current ROE is 248.40%. There are 64.28 million shares outstanding and has 31.33 million shares at float. Insider transactions are down 67.83% and insiders own 0.40% of the stock in the company.

Is PGRX a solid investment at these levels? Get exclusive data and trends here.

 

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About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

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