Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) Extends Weekly Decline

Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) declined 4.96% in yesterday’s trading session on a heavy 656,799 dollar volume. An investor claim that this recent decline was unexpected suggests two things. Either the investor has not analyzed the financial report of company and therefore has no clue as to how dismal Black Stallion’s situation actually is, or he is lying.

The number game

It is suffice to reveal that Black Stallion’s current state for the quarter ended June 30, 2015 is pitiful. The cash reserves are just in hundreds and current assets are limited to $7,000. In the same period, the current liabilities amounted to $20,000. The company has generated no revenues ever while net loss in the reported period amounts to $34,000.

The chart of Black Stallion reveals how easy it is to propel an OTC stock move north on the chart. In fact, it just needs a landing page, pump campaign and absurdly high price targets to achieve this. Additionally, when a party is ready to compensate $150,000 for the promotional campaign, the probability of success is still better.

The highlights

In such instances, not even the poor financial numbers can stop stock from moving up on the chart. Of course, things may not always work as per the plan. Almost a month ago, Black Stallion stock was trading close to $2.40 mark whereas presently it is trading close to $1.70.

The short-sellers got activated when an article on a popular financial site highlighted the several problems associated with the company. These problems include but are not limited to the promotional campaign, the office location and CEO George Drazenovic involvement with a revoked company famous as Sun Cal Energy.

BLKG

Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) continued the short term decline as it finished the last trading session with a loss of 4.96% but from the intraday price action, the bounce from the day low might have interested the bulls a bit. The final closing price of the day at $1.34 was almost 16% higher from the day low of $1.15, shaping the daily candle a lot like a Bullish Hammer though a lot of confirmation is still required. Any bullish scenario can be considered only on a break above the band of $1.60-$1.70.

Pin It

Leave a Reply

Your email address will not be published. Required fields are marked *