The last time oil was trading at these prices WEE was $.65 in mid-to-late September. The markets have gone risk-on as a number of tail-risks appear to have been averted for now from a Chinese hard landing, to European debt concerns, to the U.S. fiscal cliff. The worry was a significant and sustained recession if not worse given the risk. Tax loss selling also complicated WEE's circumstance, along with the stalling of revenue growth in Q3, and the long-term EOR questions.
Since WEE was $.65 in mid-to-late September there have been a number of positive developments for this company and clarity concerning EOR as WEE reported what may be a record sequential gain. WIth the prospect for 50% growth this fiscal year given the recent contract wins a revenue ramp-up can be seen.
Nice breakout for WEE above its 50-day moving average.