The chart of Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) highlights how easy it is to push a OTC penny stock up on the chart. In fact, all what is needed is a landing page, promotional emails, and absurdly optimistic price targets. Moreover, when a party is willing to pay $150,000 for the pump, the chances of success are still better.
In such cases, not even the dismal financial statement can halt the stock up movement on the chart. As per the latest report, Black Stallion had hardly any cash in its book. The current assets were no more than $7,331 while current liabilities exceeded $20,000. For record, the company has failed to generate any revenue since inception. The net loss came at $34,671.
Of course, not all the things have been moving according to plan. Almost a month ago, the stock price was flirting with $2.40 mark whereas now it is trading around $1.70. Despite this, there are people who expected a sharper decline. These traders initiated short positions in BLKG stock and they even wrote an article about Black Stallion performance and the current promotion.
The article mentioned here appeared on a popular financial site and it highlights many things: the pump, the office location and the involvement of CEO George Drazenovic with a revoked OTC company known as Sun Cal Energy.
The article provided the short sellers an opportunity to earn a profit. On September 4, Black Stallion eroded about 8% of its market value, but it has again proven to be stubborn since then. There have been numerous re-posts of the negative article, but ignoring this, BLKG kept on moving higher on chart.
After a series of narrow range days, finally Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) saw an expansion of volatility as it ended the last trading session with a large loss of 11.32%. The volume of 563,000 was higher than the daily average of 450,000 but none of the figures were very noteworthy from the larger perspective. The stock is not highly liquid and that has a certain effect on its price action too. The price rejection has come from a support turned resistance and that is capable of pushing the price further down.