Although the Viking Energy Group Inc (OTCMKTS:VKIN) made a major announcement on Wednesday, it did not do much for the company’s stock. It is necessary for investors to keep in mind that the stock has slumped by as much as 17% over the past week.
On Wednesday, VKIN stock went down 1.68% at $0.70 with more than 89k shares, compared to its average volume of 350k shares. The stock has moved within a range of $0.7005 – 0.7792 after opening trading at $0.7250.
Viking Energy Signs Agreement to Acquire Renewable Diesel Facility
However, it may be a good idea to take a closer look at the announcement made yesterday in order to figure out if the slump could in fact be an opportunity. The company revealed on Wednesday that last month on November 18, it had signed a Membership Interest Purchase Agreement in a specific group of companies.
The companies in question are involved in the development and construction of a processing plant so that it could be brought into commercial operation. The plant in question is located in the city of Reno in Nevada and is meant for the production of renewable diesel.
It was also noted that once the plant was put into operation at full capacity, it could produce as much as 43000000 gallons of renewable diesel on an annual basis. It goes without saying that it could be a significant source of revenues for the company in the long run but at this point investors do not seem particularly impressed.
VKIN stock is trading below the 20-Day and 50-Day Moving averages of $0.80 and $1.30 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.77. The stock is up 13% in the past month.