CHARLOTTE, N.C. (Stockpickr) -- Dallas-based New Concept Energy (GBR), formerly known as CabelTel International, is primarily an operator of oil and gas wells, in the U.S. and also owns mineral leases in Ohio and West Virginia. Interestingly, it also leases and operates Pacific Pointe Retirement Inn, a retirement community located in King City, Ore.
At the time of this writing, GBR is up 54% today, trading at $2.22, after trading earlier as high as $2.58.
Fundamentally, the stock indicates at this price level a trailing price-to-earnings ratio of only 2.5. However, a cursory glance reveals no forward guidance provided by the company, so there is no forward P/E figure. Book value per share shows as $3.50.
A glance at the monthly chart shows this stock has undergone several huge and very brief price spikes, historically, with concurrent huge volume spikes, relative to GBR's typically very low volume.
Based solely upon the previous similar occurrences, this current price spike could see significant upside from the current level.
Let the buyer beware, though. As can be seen in the monthly chart, each of these price and volume spikes has been immediately followed by a return to much lower price and volume levels, so I imagine that a number of traders/investors have found themselves trapped in their positions.
So if you decide to try to play this price and volume spike, be nimble.
-- Written by Ben Brinneman in Charlotte, N.C.
Trader Ben Brinneman, featured on MarketWatch, Bloomberg and Reuters, resides in Charlotte, N.C., and is the owner of C Squared Trading. Brinneman started his career trading bonds for U.S. Bancorp and was an analyst for a wealth management firm. Brinneman and his team at C Squared Trading have taught hundreds in a one-on-one mentorship setting via Skype or live in Charlotte.
You can follow some of their free trades and tips on Twitter at @csquaredtrading.
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