A New Pump for New Western Energy Corp (OTCMKTS:NWTR)

4NWTR.pngWe last covered New Western Energy Corp (OTCMKTS:NWTR) back in mid-July when they were once again starting to garner some attention from the market. The reason for it was the same as the reason behind yesterday’s record session – a paid pump.

It seems that in the absence of an active promotion investors quickly forget about the gas and oil company but after just a couple of email alerts they rush in to buy the stock. As we said, yesterday nearly 2 million shares were traded, an absolute record for NWTR. The increase in price per share was also significant with the ticker closing at $0.24 or 22% above the previous close.

The majority of touts were sent by Penny Picks, Penny Stock Newsletters and Damn Good Penny Picks for no disclosed compensation. On the other hand 1st News and Stockpalooza received $20 thousand for their services. And in a lone tout sent on October 22 the Stock Brainiac said that someone associated with them has bought 30 thousand shares.

NWTRchart2.pngLeft on their own NWTR quickly starts to correct though. And taking a look at the company’s fundamentals makes it quite obvious why. Despite being able to generate revenue, something that most of the other pennystock oil development companies are only dreaming of, the amount of sales is nowhere near enough. According to the financial report for the quarter ending June 30, NTWR had:

  • $212 thousand cash
  • $345 thousand total current assets
  • $773 thousand total current liabilities
  • $11 thousand revenues
  • $713 thousand net loss

The latest press release form them dates back to October 10 and announced that the company is going to open additional payzones on two of its Fredonia Gas Wells. If this is going to bring some much needed boost to their balance sheet remains to be seen. Whether or not the $2 per share issued to the company as a six-month target price by Zakcs Small-Cap Research are realistic is up to you to decide. Just be sure to do your own due diligence and never take the email touts at face value.

Yesterday Infinity Energy Resources, Inc. (OTCMKTS:IFNY) bombed by losing nearly 30% of its value and barely stopped its descent at $2.05. At the same time Pan Global Corp. (OTCMKTS:PGLO) is still climbing higher backed by a $1.1 million paid promotion. Traders should be extremely careful and should take into account all the red flags surrounding the company before making any decisions.

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