Have you heard of New Concept Energy (NYSEMKT:GBR)? Chances are, many investors are not familiar with the tiny company. However, GBR stock is captivating attention in the market today, with shares up more than 600%. So what do you need to know now?
To start, New Concept Energy focuses in the world of oil and gas. With several decades to its name, the company calls Dallas, Texas its home. Oil firms have not been particularly successful lately, especially thanks to early actions from President Joe Biden. However, something has GBR stock off to the races today.
With that in mind, here is what you should know about New Concept Energy now:
- New Concept Energy has been around since 1978, although it was previously called CabelTel International.
- Investors should know that GBR stock is a subsidiary of Realty Advisors.
- Since 2003, the company has focused on energy resource development.
- Right now, it has 153 gas-producing wells and 44 non-producing wells.
- Its mineral leases cover approximately 20,000 acres.
- Importantly, New Concept Energy calls Texas its home. However, it focuses on the Appalachian Basin and the Utica Basin.
- This means that it focuses in Athens County and Meigs County in Ohio, as well as Calhoun, Jackson and Roane counties in West Virginia.
- According to its website, New Concept Energy is seeking new projects to acquire.
- Potential projects must have current production or shut-in wells.
- They also should be between $10 million and $30 million.
- Beyond that, there is not much recent news from the company.
- Its last press release is from August 2020. In that release, the company shared its second-quarter results.
- For Q2, New Concept Energy reported a net loss of $137,000, or 3 cents per diluted share.
- That compares to a net loss of $141,000, or 3 cents per diluted share, for Q2 2019.
What to Know About GBR Stock
Importantly, investors should know that there is not much news today surrounding New Concept Energy. In fact, the company has not shared any updates on its website since August. Why then is GBR stock up more than 600%?
For right now, there just may not be a clear explanation. We have seen a rise in speculative penny stocks alongside the r/WallStreetBets rally in GameStop (NYSE:AMC) and AMC Entertainment (NYSE:AMC). While it is not clear that Redditors are rallying behind New Concept Energy, there is a chance that the Wild West atmosphere may be boosting GBR shares on Thursday.
Beyond that, investors should make sure to understand the current energy climate. Biden has thus far aligned himself closely with alternative energy goals. He has rejoined the Paris climate deal and scrapped the permits for the Keystone XL pipeline. And, as of yesterday, he recommitted to ending oil and gas leasing on federal land. Although this certainly troubles the water for oil and gas investors, some still see hope. In fact, one Seeking Alpha contributor wrote that the Keystone XL pipeline blow could actually be good news for TC Energy (NYSE:TRP).
No matter what, make sure you do your own research and understand the risks present in speculative stocks.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed