Short-sellers of PEDEVCO Corp. (PED) felt the pain today as the stock climbed around 100% in after hour market trading on Wednesday.At last check, the stock was trading at $2.43.
What exactly is driving INDO shares higher today?
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The reason could be related to its potential takeover of SandRidge Permian. Although there has been no official news release announcing the company, reports suggest a catalyst for the upward move was a Form 4 filing with the SEC.Earlier this month, PEDEVCO requested again that Avalon and Montare publicly inform the SandRidge Permian Trust common unit holders concerning the sale of assets that released 31.8% of the Trust’s royalty interests for $4.9 Million.
PED has a history of big gains
This is not the first time the stock made such a big move. As we reported in August, PED stock skyrocketed over 100% when it showed interest in a potential acquisition of the trust. At the time, Pedevco sent an open letter revealing their intent to acquire SandRidge Permian Trust. The letter was addressed to Bank of New York Mellon Trust Company, who also serves as the trustee of SandRidge Permian Trust.
The open letter from Pedevco also claims that the company would be a strong business partner for SandRidge Permian Trust in the management of the trust’s assets. The company cites its familiarity with those assets as a key reason for this.
It’s still unclear what exactly caused the increase, but it also could be the company’s 1.5 million shares float. The stock could also be experiencing extreme volatility, making it more susceptible to further declines.