Mongolia Energy 0276

[winston]

I was searching high and low on why this stock was up 30% yesterday. Can a stock go up by 30% when there's a profit-warning ??

DJ MARKET TALK: Mongolia Energy Set To Fall; Warns Of FY09 Loss

0834 [Dow Jones] Mongolia Energy (0276.HK) set to fall after issuing profit-warning, with company expecting to report net loss for fiscal FY09 ended March 31 vs profit of HK$74.40 million in FY08, mainly due to expenses for exploration, accounting losses due to early redemption of loan note (about HK$100 million).

News shouldn't be too surprising after fiscal 1H net loss of HK$185.61 million. Stock ended +35.2% at HK$3.53 yesterday on speculative interest, says Francis Lun at Fulbright, while company says it's not aware of any reasons for jump.

"I think the stock will witness strong selling pressure today of around 30% decline after Tuesday's gains. As there is no evidence that the company could see any turnaround in the near-term, I don't think its recent gains are justified," Lun says