It is not a delightful week for Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) investors as the stock has been continuously moving down on the chart. The stock has moved from less than $1 to over $1.5 per share in a matter of few weeks.
Black Stallion recently made news by engaging Michael L Pinnell, a renowned figure in the industry, to the role of VP of Exploration. The company’s prime focus appears to be on the probable yields in basins based in Montana that are believed to harbor substantial quantity of natural gas.
Black Stallion stock momentum in last one month highlights a popular trend of OTC penny market. These penny stocks tend to move higher once they become a target of paid pumps. A creation of dedicated landing page, promotional letters and shining hard mailers and optimistic price targets are seen successful in impressing investors.
As a result, people tend to overlook the various problems associated with the company. Here, it is worthwhile to mention that the outfit promoting Black Stallion has received hefty compensation of as much as $150,000.
One thing that investors should not forget is that the stocks targeted by pumps tend to decline as sharply as they moved up once the pump ends. This week’s Black Stallion stock movement can be the first indication of the upcoming decline.
The financial report of the company do not supports positive momentum of BLKG stock. As per the latest filing, the company is almost with no cash in its book. Its current assets are close to $7,000 while current liabilities surpassed $20,000. Black Stallion has failed to record any revenue in the quarter while net loss was $34,671.
Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) experienced a quiet day after the continuous decline of the last few days and finished the last trading session with a loss of 1.49%. The volume of the day at 420,000 was almost the same as the daily average of 438,000 but none of the figures were noteworthy. The intraday range of $1.21-$1.41 was contained in the range of the previous session, making it an Inside Day bar. This pattern generally indicates a collapse of volatility or a mean reversion in the short time frame and gives the trend a pause.