Low Float (NYSE: EQS) Is On Breakout Watch Based On 3 Key Potential Catalysts (Bell Watch Initiated)
Oil prices have experienced a surge recently, demonstrating significant growth from mid-December lows, driven by a combination of factors that are impacting both supply and demand. (1)
One of the primary drivers behind the recent increase in oil prices is the faster-than-expected growth of the U.S. economy in the last quarter of the year.
U.S. economic data has revealed robust growth, signaling increased demand for oil and energy resources. This positive demand indicator has contributed to the upward pressure on oil prices.
Geopolitical Tensions in the Middle East (1)
Geopolitical tensions in the Middle East continue to play a pivotal role in the oil market. Disruptions in the Red Sea corridor, a critical global trade route, have caused concerns and pushed oil prices higher.
The recent Houthi missile attack that forced Maersk ships, including those carrying U.S. military supplies, to retreat in the Bab al-Mandab Strait off Yemen has heightened these concerns.
Joshua Mahony, Chief Market Analyst at Scope Markets, noted, “We are finally seeing energy markets wake up to the distinct possibility that these supply chain disruptions will rumble on for months yet.”
The uncertainty surrounding a potential military solution to ensure safe passage further adds to the tension.
Ukrainian Drone Attack on Russian Oil Refinery (1)
Another factor contributing to supply worries and driving up oil prices is a Ukrainian drone attack on an oil refinery in southern Russia.
This incident has raised concerns about the stability of oil supply in the region.
Drawdown in U.S. Crude Inventories (1)
In the United States, a larger-than-expected drawdown in crude oil inventories, primarily attributed to extreme cold weather conditions, has also supported the recent surge in oil prices.
U.S. inventories fell by 9.2 million barrels last week, according to the Energy Information Administration.
In this dynamic oil market environment, Equus Total Return, Inc. (NYSE: EQS) is one little-known company to keep an eye on.
3 Key Reasons Why Equus Total Return, Inc. (NYSE: EQS) Could Become A Near Term Breakout Target
1. Ultra-Low Float Situation
With an incredibly low float of less than 7Mn shares available, Equus Total Return, Inc. (NYSE: EQS) is in a unique position. Such scarcity can lead to significantly volatile swings, making it very important to keep a close eye on this one.
2. Strategic Expansion
Amidst the recent surge in oil prices, Morgan E&P, a subsidiary of Equus Total Return, Inc. (NYSE: EQS), has been strategically expanding its net acreage and reserves in the Bakken region which has recently witnessed acquisition activity. This expansion signifies a commitment to growth and adds depth to the company's potential.
3. Strong Insider Ownership
With over 54% insider ownership, Equus Total Return, Inc. (NYSE: EQS) demonstrates a high level of confidence from its management team. Such insider interest aligns their success with that of other shareholders, providing transparency and potential for long-term growth.
Equus Total Return, Inc. (NYSE: EQS): Transitioning from BDC to an Operating Company (2)
Understanding Equus Total Return, Inc. as a BDC
Equus Total Return, Inc. (NYSE: EQS) operates as a Business Development Company (BDC), specializing in in-vest-ments in privately owned, small- and medium-sized enterprises. BDCs like Equus provide access to private market opp's and offer liquidity, making them attractive to track.
Advantages of BDCs
BDCs offer advantages such as access to private companies, enhanced liquidity, and transparency due to their regulated nature. Equus, along with its subsidiary, Morgan E&P, LLC, has been actively expanding in the Bakken region, demonstrating growth potential.
Seeking to Transform Equus into an Operating Company
Equus Total Return, Inc. (NYSE: EQS) plans to shift from its BDC status to become an operating company, unlocking various benefits:
- Growth opp's through acquisitions and organic growth.
- Lower compliance costs as a percentage of assets.
- Flexibility in issuing equity and other securities.
- Streamlined related party transactions.
- Enhanced compensation packages.
- Expanded in-vest-ment options.
Equus Total Return, Inc. (NYSE: EQS) is actively evaluating merger and acquisition candidates and transaction structures.
After securing shareholder approval, they will actively pursue the transformation into an operating company, with the timeline contingent on meeting necessary conditions.
Equus Total Return, Inc. (NYSE: EQS) is on the path to transition from a BDC to an operating company, aiming to provide enhanced growth opp's and benefits for both the company and its shareholders.
And here's the potential catalysts to focus on right now...
#1. Equus Total Return, Inc. (NYSE: EQS)’s Ultra-Low Float Needs Your Immediate Attention!
As of Monday's closing bell, Finviz was reporting EQS to have a float of fewer than 7Mn shares.
Why is this important? One word: Volatility.
When a profile has a float this small, volatility can create an environment for explosive intraday and short term chart moves.
This environment will typically need another catalyst, like company news, whether good or bad, to spark a move.
Which is why it's important to look out for stuff like this...
#2. Equus Total Return, Inc. (NYSE: EQS) Subsidiary, Morgan E&P, Expands in the Bakken - A Closer Look.