Tim Sykes: Lucas Energy A 'Potential Short' Amid Low Volume Run-Up

  • Shares of nano cap independent oil and gas company Lucas Energy, Inc. LEI were trading up more than 345 percent on Thursday afternoon.
  • The surge was triggered by the announcement of an agreement to purchase “working interests in producing properties and undeveloped acreage” from 21 different entities, a press release read. The company noted that the assets being acquired include "two largely contiguous acreage blocks in the liquids-rich Mid-Continent region."
  • Benzinga contacted stock trader, entrepreneur, and penny stock expert Tim Sykes for comment. Below are his views on the issue.

Shares of nano cap Lucas Enery spiked on Thursday trading, after the company announced the acquisition and development of crude oil and natural gas assets in various geological formations.

Related Link: Shares Of Lucas Energy Are Having An Insane Day: Here's Why

Benzinga contacted Tim Sykes for comment. The expert assured “this is a classic case of thin holiday trading and LEI is the low float play du jour, over-aggressive short sellers got squeezed,” similar to what happened at KaloBios Pharmaceuticals Inc KBIO.

Related Link: 10 Biotechs Short Sellers Are Betting Against

“For me, it's a potential short as it'll likely continue fading into next week as I had a nice timestamped chatroom call to all longs at $10ish.”

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Posted In: Short IdeasCommoditiesExclusivesMarketsMoversTrading IdeasEnergyOil & Gas Exploration & ProductionTim Sykes
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