Chart of The Day - LEXG

LEXG hit a high today of $7.89 and had over $97 million in volume. Yesterday the volume was over $50 million, the prior day $37 million. Assuming LEXG's outstanding shares are the same from its last filing, the current market cap stands at over $360 million. This was a $5.7 million market cap company last month.

The stock has now run over 7,000% from the $.12 price I brought to the blog on March 22nd.

The $408,000 front load trades, on the eve of the start of this huge rally, are now worth almost $26 MILLION. Yes you heard that right. $26 million.

On March 22nd, just before LEXG started its rally someone purchased 3.4 million shares for $.12. You can speculate all you want about that transaction, all we know is that it happened, and that whoever orchestrated that transaction must have known about the impending expansion of the LEXG bubble and loaded the proverbial boat.

So when, if ever, will the LEXG rally end?

If LEXG continues its current rise, it will surpass Exxon Mobile by market cap before Independence Day and become the largest company by market cap soon thereafter. That is a huge stretch, but you can see the type of rally we are dealing with here. Almost $100 million in trading volume, that is a huge number. To think this stock was DEAD, DORMANT, with only two trades for all of 2011 before March 22nd rolled around. It's nothing short of remarkable to see the stock trade now, compared to only a month ago.

What do I think?

I still think this stock is in for a 30-50% drop in the next few days and will trade back under $2 in short order. Although anyone betting on a pull-back has been steamrolled. LEXG up another 50% today on almost $100 million in money volume. The shorts will be right at some point, if LEXG keeps going higher the potential for a big drop will only grow.

For now let's enjoy the chart, the rally, and the fact the investors, traders, whoever took a penny stock of $.12 and bought it all the way to $7.85.

If there was any reason to doubt the potential gains this market has to offer, LEXG should put that all to rest.

I hope the fall from grace is soft and that the stock just slowly disappears. A violent fall, or an ugly end just won't befit what has to be the most memorable moves we've seen in quite some time. GWAY was a nice one, but did not see anything close to the money we are seeing here.