GASFRAC Energy Services down more than 7%, probably on profit taking; market awaits Thursday's result
GASFRAC Energy Services Inc. (GFS.V) is down more than 7% with more than 3.8 million shares traded a day after an investment article in the Globe and Mail newspaper said the company - which has traded above $14 this month - was facing a flex point this week.
The article said GFS had taken off like a rocket since it started trading on the Venture Exchange in August of 2010.
In Monday's column, Lou Schizas said: "The next flex point for the company will come on Thursday, when it reports its fourth-quarter results. As always, if it meets the Street forecast it trades sideways or slightly lower. If it beats the Street the shares will continue to climb. If it misses the Street, investors get a haircut.
"At this point I think that GFS has gotten ahead of itself and might need to pull back a bit. The bought deal that raised close to $110-million is already in the money. At some point investors are going to want to monetize some of those early profits of 65.79% that they have earned in less than 90 days."
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