Can Northumberland Resources Inc (OTCMKTS:NHUR) Recover?
June 10 – this is the date of Northumberland Resources Inc (OTCMKTS:NHUR)’s last press release. It’s also the date of Billionaire Stocks’ last email about them. Coincidentally, it’s also the last time they managed to close the session with some dignity, gaining a modes 5.26% during the day.
Since then, it’s been all downhill for NHUR and the total losses in just seven sessions amount to around a third of the value with the biggest single day drop witnessed yesterday when the volume went past the 1million shares mark and the stock ended up 12% cheaper compared to Tuesday’s close. NHUR‘s chart is starting to look remarkably similar to the one for Lot78 Inc (OTCMKTS:LOTED) and there’s little doubt in anyone’s mind that the dismal performance of the two tickers is caused by the expensive pumping campaigns that various entities did for them.
That said, there was also a multi-million dollar pump for Norstra Energy, Inc (OTCBB:NORX) and, predictably, they crashed as well, but unlike LOTED and NHUR, NORX did show some signs of waking up in the last couple of sessions.
Parallels between NORX and NHUR are inevitable and we can see that some strong believers around the message boards are saying that when the pumpers go away and when the company informs us about some oil being pumped out of the ground, NHUR will bounce and will eventually bring the profits back.
We’re not too sure about that. As we wrote in some of our previous articles, NHUR‘s report for the first quarter of 2013 looks absolutely dismal. Yet, they say that they’re going to explore two new wells that will bring them millions of barrels of oil. Back in March they announced that they have secured some funding but we’re afraid that this will just add to the liabilities and since we can only guess when the actual pumping of oil begins, more debt is definitely something the shareholders don’t want to see. Furthermore, we don’t know why, but NHUR are reluctant to disclose who the financing entity is. They only say that the additional money will come as an extension of a funding commitment that was closed back in 2012. We dug around in their filings and the only thing that is even remotely similar is a stock purchase agreement with a Belize-based entity called ThorFinn Partners. This wouldn’t have been so bad if there was some information about ThorFinn, but it would appear that they don’t even have a website. And now NHUR are relying on them to get the necessary $3 million financing.
It all seems just a little bit sketchy and when you consider the other red flags around NHUR, things start to look even more disturbing. In our previous articles we wrote about the fact that NHUR‘s official mailing address appears to be offered as a virtual office. We also wrote about the fact that the address displayed on their website, is the same one that we see in the filings of National Graphite Corp (OTCMKTS:NGRC) and Tiger Oil and Energy Inc (OTCMKTS:TGRO) and after some more research we managed to put the names of Universal Potash (OTCMKTS:UPCO) and Black Hawk Exploration Inc (OTCMKTS:BHWX) into the equation. What’s connecting all these ventures? Lots of things, but the name of Kenneth Liebscher seems to be appearing everywhere. Of course, we did some research on him as well and we found that a former company of his called ThermoElastic Technologies Inc. was one of the targets during FBI’s “Bermuda Short” operation from 2002.
We reckon that these are quite a lot red flags and they all raise doubts around NHUR‘s future success. In any case, if you are still considering a potential investment in this particular ticker, we reckon that some extra caution and a lot of due diligence are absolutely crucial before making any decisions.
