Desert Mountain Energy Corp (DMEHF)

[fausthimself]

Sure, the big spike was mostly from the news of the Arizona Appellate Court ruling in favour of DME after the City of Flagstaff placed a restraining order on DME’s Well #3. The news broke on Friday, but the stock was running up earlier in the week most likely due to investors taking advantage of insider information.

Well #3 is a topic of speculation among DME investors, after the CEO hinted at the possibility of helium-3 being present in higher than normal amounts. Because helium-3 is a matter of national security (it’s used to detect radioactive isotopes at airports, and also has the possibility to be used in fusion energy), there most likely will not be a news release in regards to finding helium-3. The biggest hint we will probably see is if the US government buys all of the helium coming out of Well #3. I think some long term investors of DME could have added to their positions based on this speculation.

From a macro perspective, I think the helium sector is heating up, with more investors catching on to the current helium shortage and what this means to future helium prices. Most helium stocks have been seeing an increase in share price lately, and I think DME’s gains today has a lot to do with that. Something else that could be on investor’s radar is how the war in the Ukraine is affecting the supply of neon. Since DME has encountered neon in their first well, this could be a potential draw among particular investors learning about the neon shortage.

DME’s latest board member, former judge Weldon Stout has been buying shares on the open market, the most recent being today buying 1,100 shares for almost a dollar more per share than he paid the last time he bought shares on March 11th. Insider buying will sometimes have network effects from investors close to or familiar with the insiders. A nice run up in the share price occurred shortly after the appointment of Kelli Ward to the board of directors in April of last year.