Petrotech Oil & Gas Inc (OTCMKTS:PTOG)’s Pump Attempts Fail

PTOG.pngA couple of days ago Research OTC and Momentum OTC got paid $5,000 to send out a couple of emails saying how much potential can be found in Petrotech Oil & Gas Inc (OTCMKTS:PTOG)’s shares. Who paid them? It was PTOG themselves, and if you read through our articles regularly, you would probably know the our opinion on companies that try to pump their own shares is not exactly positive.

PTOG didn’t rely solely on the emails, though. The pumpers said that they heard a “rumor” about some news coming from the company and surprise, surprise, minutes before the start of yesterday’s session, there was a new press release. And isn’t it exciting?

PTOG announced yesterday that they have began work on their properties. If you follow mineral exploration penny stock companies like we do, you will probably know that every time there is a new announcement from such ventures, it’s most likely about an acquisition of a supposedly proven well or a mine. In most cases, it is garnished with projections about future growth and there is also a statement from the CEO in which the words “shareholder” and “value” get used and abused. PTOG, though, basically said “We’re starting our operations.” and that, coupled with the emails resulted in… a 20% loss.

47RITE.pngThat’s not that much of a surprise for us if we have to be honest. These sort of awareness campaigns usually end up sour no matter how much potential the pumped company has and Research OTC as well as Momentum OTC have been around for long enough to cause some spectacular promotional flops. One of the more recent ones was the pump for MineralRite Corp (OTCMKTS:RITE) from April 29. Both newsletters took part in it and you won’t need to spend hours analyzing the chart on the right to see what the results were.

Yesterday’s drop for PTOG also not that shocking because they have been around for so long and they have been promoted so many times that people seem to have lost faith in them. Back in January they changed their name for the seventh time since their inception and, as you’d have probably guessed, they executed a reverse stock split. The price kept sliding down, however, and the shareholders don’t seem to be too happy about that.

Before PTOG changed the name, the company was known as Unity Management Group, Inc. and for the three years that it went by that name, our database has recorded a total of eight promotional campaigns and over sixty emails received from all sorts of pumpers.

Judging by their latest financial statement, they haven’t been terribly successful with their business, either. The report covers the fiscal 2012 and it’s not really indicative of the current financial situation, since an acquisition was closed in April, but it does give you an idea of how they have been doing throughout the years. Here are the figures:

  • cash: $93
  • current assets: $5 thousand
  • current liabilities: $1.2 million
  • yearly revenue: $49 thousand
  • yearly net loss: $2.6 million
  • accumulated deficit: $5.3 million

With those figures in mind and the fact that they are changing their name and ticker so often, it really is hard to believe that after 15 yearly of struggling, they have finally managed to get on the right track.

Of course, there is a chance that they have, indeed and their newest subsidiary might just have the resources to get them back on their feet but regardless of whether this is the case or not, paid pumps like the one we saw yesterday will inevitably punch the price to the ground. That’s why you should be extremely careful when weighing your risks.

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