Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) Won’t Go Down Without a Fight
The chart on the right belongs to Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) and it could serve as a pretty good example of how easy it is to push a penny stock sky high. In fact, all you need is a landing page, some emails, and a few absurdly optimistic price targets. When someone’s willing to pay $150 thousand for the pump campaign, the odds of success are better still.
Not even the horrifying financial statement proved to be enough to knock the stock off its perch. And it really is horrifying. Here’s a summary:
- cash: $239
- current assets: $7,331
- current liabilities: $20,571
- NO revenue since inception
- quarterly net loss: $34,671
Of course, not everything has been going according to plan. About a month ago, the ticker was flirting with the $2.40 per share mark whereas right now it’s around $1.70. Despite this, many people expected a much heavier crash.
Those people initiated short positions in the stock and they decided to help BLKG on the way down by writing an article about the company and the current promotion. The article in question appeared last week in a popular financial website and it talks about things that we’ve been discussing for more than a month on these pages – the pump, the location of the company’s headquarters, and the involvement of George Drazenovic (BLKG‘s CEO) with a revoked OTC enterprise called Sun Cal Energy (once known as SCEY).
The attack gave the short sellers an opportunity for a profit which is probably what the author intended. On September 4 (the publishing date of the article) BLKG lost about 8%, but it has once again proven to be surprisingly stubborn since then. There’s been a number of re-tweets and re-posts of the negative article, but despite this, BLKG closed yesterday’s session 2.4% in the green at $1.71 and it also logged a dollar volume of about $456 thousand which goes to show that there are still people willing to play the ongoing promotion.
Those people mustn’t forget, however, that BLKG remains a pumped penny stock and as such, its prospects are not brilliant. If the people who acquired 19,872,000 shares for $49,680 two years ago decide to flood the open market with a large amount of discounted stock, for example, BLKG will most likely have some serious problems staying as consistent as it has been so far.
That’s why treading carefully and keeping your eyes peeled is of utmost importance.
