RAM Energy Resources, Inc. (NASDAQ:RAME) Runs Up and Down

By StockFrontRunners on Jun 22, 2010 with Comments 666

Over the last week, RAM Energy Resources, Inc. (NASDAQ:RAME) stock has been running hastily up and down. The unstable financial position of the company

appears to be a good reason for the observed price movements of the stock.

After RAM Energy was mentioned among the 10th best rebounding stocks in the industry, its price rose 262% up from its 52-week low. However, RAME ran down by 3.48% soon after its price jump.

Yesterday, the stock closed at $2.22 per share and its traded volume exceeded 900 thousand shares, approximately four times higher than the company’s 3-month average volume.[BANNER]

However, the annual results of RAM Energy are disappointing:

approximately 2 times lower net income
4 times lower revenues
3 times lower gross profit
lower cash flows from activities

Recently, the board of RAM Energy announced they were considering the options for sale or refinancing of the company, in order to increase shareholder value. As RAM has a debt of over $240 million, the analysts suggested that selling would be a much better option for the company.

RAM Energy Resources, Inc. is an independent oil and natural gas company engaged in the acquisition, development, exploration and production of oil and natural gas properties. The company is presently looking for strategies of implementing its business plan, relying on the drilling and development program outlined at the beginning of this year.