Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) Slips Again

Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) is sliding. At the end of last week, it lost almost a tenth of its value in a matter of a single session and yesterday, it slipped some more. 4% were wiped out and BLKG managed to hang on to the $1 per share mark, but only just. The question now is: Will it be able to bounce?

As you can see from the chart, BLKG has been a rather wild ride over the last few months. There have been more than a few ups and downs, but the thing that might strike some of you is the fact that after every drop, there is a bounce. While it will never be a millionaire factory, if the historical performance is anything to go by, BLKG could go back up and it could give you an opportunity for a tidy profit.

But what are the odds of the stock repeating the pattern for the umpteenth time? There are a few very important things you need to consider before you can answer this question.

First of all, you need to be aware of the market cap which, at yesterday’s close sits at just under $44 million. It’s certainly not there because of BLKG‘s financial results. The ones for Q2 look like this:

• cash: $239
• total assets: $7,331
• total liabilities: $20,571
• NO revenue since inception
• quarterly net loss: $10,619

The reason for the current market cap and the increased trading volumes lies with a paid pump that has been going on for quite a while. It began way back in August when a landing page was set up and some emails started flying around. The outfit responsible for the pump is called Wall Street Report and it initially reported a compensation of $150 thousand.

Two months is an extremely long time for a paid pump, but a quick glance will leave you with the impression that Wall Street Report haven’t given up on BLKG just yet. The landing page is still alive and kicking and the disclaimer was recently revised. It now says that the budget sits at $1 million.

Based on this, you’d be forgiven for thinking that BLKG is in for some more promotional action. Unfortunately, you might be wrong. Yesterday, Wall Street Report started sending out emails regarding a new pick of theirs – PetroTerra Corp. (OTCMKTS:PTRA). Just like with BLKG, they also put together a landing page and produced a video which goes to show that they have probably moved on.

And that really makes a potential trade extremely dangerous because, as we’ve established already, apart from the paid pump, there’s nothing else supporting BLKG at the levels it is currently occupying.

As for a long term investment, you’ll need to stock up on those brave pills if you’re even contemplating it. Especially when you have in mind the fact that a vast portion of the currently issued and outstanding shares were acquired for peanuts a couple of years ago. More details can be found in our previous articles.

About twenty minutes after the opening bell, BLKG is sitting at $0.98 per share (2% in the red).