American Power Corp. (OTC:TGMP
, TGMP message board
) started to climb up again. On Tuesday, the stock soared 19% to close at $1.19 per share
and managed to keep the positive price change during the next day.
The most reasonable explanation on the price move appeared to be a couple of promotions for TGMP over the last two days.
Along with the promotions, American Power has just reported the closing of a $10 million financing agreement with Black Sands Holdings, Inc. According to the announcement, the agreement included a warrant that could provide additional $10 million to TGMP over the next years. The funds will be used to support the company's operations.
Having heard the news, the investors' interest was provoked and the stock started the up move. Though, American Power decided to ensure additional support to its stock by paying for a stock promotion, which sent TGMP up in the chart.
American Power Corp. is an energy company focused on developing its coal resources to support electricity generation. Following the chart, we notice that the company has started trading not long ago and has relied mainly on good news and promotions, resulting in a high level of volatility.
According to TGMP's financial report from the end of this January, "the current funds available to the Company will not be sufficient to continue operations", and the company doesn't have and doesn't plan to hire any employees other than its President and its management team.
Based on all the above-mentioned facts, we cannot be certain about the future development of American Power Corporation.