Black Stallion Oil and Gas Inc. (OTCMKTS:BLKG) Slumps Further Down
Black Stallion Oil and Gas Inc. (OTCMKTS:BLKG) had a wild ride on Monday, and even managed to retain some of its gains from that session, but it was clear enough that its ascent would not last – and it didn’t. Why?
At this point there could be little doubt that in that particular session, the ticker rose because it was pushed up by optimistic PR. The press release in question announced that BLKG has “engaged Calgary-based Sproule Associates Ltd in connection with the Woodrow Prospect in northwest Montana”.
Seeing a proof that the company is not idle gave hope to dedicated investors that they can reap rewards in the long run if they support it and it gave opportunistic traders a volatile situation that they could exploit for their own profit.
Well, suffice it to say that it may well be that the second group may be more realistic in their expectations of BLKG. Sure, unlike most other OTC Markets companies BLKG actually made an effort to enlighten investors as to the content of its latest agreement by publishing it in an 8-K. However, although that nails the company an A for effort, that doesn’t improve BLKG‘s global outlook much. Why?
Because all the other due diligence that can be done on BLKG shows appalling mediocrity. In its latest financial report, it gave the following numbers:
- Cash – $239 (NUMBER NOT IN THOUSANDS)
- Current assets – $7 thosuand
- Current liabilities – $20 thousand
- NO REVENUES EVER!
- Quarterly net loss – $34 thousand
Add the glaring red flag that the company has been the target of a recent paid pump campaign, and that the pumpers were to be compensated with $150 thousand. Further, two years ago, BLKG sold almost 20 MILLION shares of its common stock for $49 thousand.
With this in mind, is it any wonder that BLKG‘s bounce was so short and ineffectual?
