Gray Fox Petroleum Corp (OTCBB:GFOX) Climbs Above $1 Again
Gray Fox Petroleum Corp (OTCBB:GFOX) has never really been the fastest moving stock on the OTC Markets. As you might know, the ticker received extensive promotional coverage a couple of months ago, but even the fifty emails received between November 17 and December 19 and the $6.20 price target set by Tobin Smith failed to yield something more than a few volume spikes.
GFOX did manage a brief climb and at one point it even logged a 52-week high of $1.22. On the whole, however, investors didn’t really seem all that interested. Which, by the way, is somewhat understandable.
As you probably know, in November 2013, the SEC started a campaign which, it seemed, was aimed at minimizing the paid promotions in Pennyland. Some large-scale pumps like Sovereign Lithium Inc (OTCMKTS:SLCO), Life Stem Genetics Inc (OTCMKTS:LIFS), Nevada Gold Corp (OTCMKTS:NVGC), Guar Global Ltd (OTCMKTS:GGBL), and Makism 3D Corp (OTCMKTS:MDDD) all received temporary trading suspension orders and, probably fearing that GFOX might be in the SEC’s sights, most investors preferred to stay away.
The promotional budget for GFOX hovered around $270 thousand which is quite a lot and suggests a longer-lasting awareness campaign but, perhaps seeing that the ticker is reluctant to move, the pumpers also decided to abandon it on December 11. Predictably, with no touting and press releases to support it, it started sliding down.
By the end of 2013, it had already dropped below $1 per share and the first sessions of the new year proved to be even more disappointing. Last Friday, GFOX hit an all-time low of $0.60 and it seemed that that would be the end of it.
Yet, we’re seeing some movement this week. On Monday it managed to jump up by around 22% while racking up a dollar volume of no less than $235 thousand. As impressive as it may be, this was nothing compared to yesterday’s performance – more than 586 thousand shares changed hands while the price swung wildly. GFOX opened the session at $1.10, reached an intraday high of $1.13, then hesitated a bit, but finished the day at $1.08 – an impressive 11.9% above Monday’s close.
The record-breaking volume and the healthy increase in the price are all signs that investors are paying attention to GFOX, but the problem is, there doesn’t seem to be an immediately obvious reason for this.
The company hasn’t issued any new press releases for almost a month and, as we mentioned already, the promoters are also pretty quiet. Of course, there is the chance of a hard mailer campaign (as we mentioned in December, there were rumors of a glossy brochure flying around), but, as of right now, a confirmation is missing.
One thing is for sure – the erratic performance has led to a market cap of around $38 million and the company’s financial situation certainly isn’t healthy enough to support it. The rather big pump campaign from a month ago isn’t helping and neither is the fact that the management team seems eerily quiet about the company’s operations.
At this point, GFOX remains as speculative and as unpredictable as ever. The threat of a wild and violent correction in the coming days is very real which is why carefully considering the risks and doing a lot of due diligence is absolutely essential.
GFOX wasn’t the only ticker to experience some intense trading during yesterday’s session. Centor Energy Inc (OTCBB:CNTO), for example, lost around 5% of its value while shifting more than $3.6 million worth of shares. Amarantus Bioscience Holdings, Inc. (OTCBB:AMBS), on the other hand, managed to jump up by as much as 33% while racking up a dollar volume similar to the one registered by CNTO.