Bullion Monarch Mining, Inc. (OTC:BULM) New Price and Volume Peaks On Continuous Uncertainty

Following the lasting chaotic ups and downs, Bullion Monarch Mining, Inc. (OTC:BULM) recorded on Friday new price and volume peaks for this year. With a continuous increase over the whole trading session, the mining company’s stock caught the attention of penny stock investors, who saw high climbing potential and continued raising the demand.

Bullion Monarch Mining had its highest close for the year at $0.80 on Friday, gaining 7.32% in value. Investors expanded the price range again, the daily low and high being also the open and the close, leading to the most intensive trading since the beginning of the year. Over 250,000 shares were traded and the stock finally made the strongly expected break through the latest resistance level of $0.80.

Considering the high levels of short selling on Friday, it seems that the market does not really expect a long lasting appreciation for Bullion Monarch Mining. The latest news about Bullion Monarch Mining also brought even more uncertainty and could not induce a clearly definable direction of move, as the usual high daily fluctuations in price continued.

In the second week of last month, the company that will have 33.3% interest in two mining properties in Brazil, was pleased to announce the beginning of drilling activities on the Dom Jesus Project in Northern Brazil, along with first promising results. The effect of that announcement was completely unnoticed, after the previous earnings release had managed to cause good recovery from the preceding low values in the middle of February. [BANNER]

According to the last quarterly report, in the nine months ended January 2010, part of the payment for the mineral rights was reclassified as exploration costs, causing significant decline in the operating margin, leading to the 27% growth in revenues get partially offset by 11.26% less earnings. Though, Bullion Monarch Mining still reports $1.44 million income, no long-term debt and the increased long-term assets through the mineral interest acquisition, makes certain investors believe that nothing gets in their way to future gold-worth profits.

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