Blue Fire Equipment Corp (OTCMKTS:BLFR) Wakes Up
Our last article on Blue Fire Equipment Corp (OTCMKTS:BLFR) came out around two weeks ago and it’s fair to say that trading days since then has been rather humdrum. The management team came up with a couple of press releases and, like many other penny stocks involved in the oil and gas industry, they didn’t fail to mention that potential military activities in Syria could give them a much better chance for profit due to the increasing price of black gold.
The ticker, however, was proving reluctant to move without the help of the pumpers. We stopped receiving emails on August 14 and while the landing page set up by Financier Digest is still up and running, the decrease in the trading volumes over the last couple of weeks was suggesting that its effectiveness is fading.
Yesterday, however, BLFR issued a new press release and that, apparently, got investors excited. More than a million shares changed hands meaning that while the difference between the opening and the closing value is minimal, the ticker fluctuated up and down the chart throughout the day and it was fueled by the news of a new purchase order that the company has received. The buyer is an unnamed Wyoming oil and gas corporation and along with the drill bit that they bought yesterday, they might also order equipment for three more wells. Apparently, this means a whole new market for BLFR and the management team seem so fired up by the progress, that they spent several more paragraphs explaining the advantages of their revolutionary cutter head. The future reports will show us how greatly the new purchase orders will affect the company’s financial situation, but in the meantime, we wanted to see if there’s anything else that has changed during the last couple of weeks.
If you have a look at our previous article, you’ll see that we weren’t particularly sure about the $1 million line of credit that BLFR secured recently. The thing that raised our eyebrows the most is the fact that Levantera SA, the Marshall Islands-based entity providing the capital, appears to have absolutely no internet presence outside BLFR‘s SEC filings. That’s no longer the case.
Levantera’s name popped up in the 10-K filed by another penny stock – GankIt Corp (OTCBB:GANK). GANK is a relatively new company, trading of its stock is pretty much non-existent (which was the case for BLFR a couple of months ago), their balance sheet reveals some pretty depressing number (which was also the case for BLFR) and while they are generating some revenues, the figures are hardly awe-inspiring (same for BLFR). We can see that the CEO and sole employee is called John Arnold, but the person that caught our attention is GANK‘s largest shareholder – Mr. Clark Rohde. Why?
Well, BLFR‘s former CEO is called Tyson Rohde. The same person was once at the helm of Go Solar USA, Inc. (OTCMKTS:GSLO), a company that received a trading suspension from the SEC back in 2011 due to some questions around the accuracy and adequacy of their press announcements. Mr. Rohde and his family also took part in the 2012 private placement when they bought a total of 7.5 million pre-split BLFR shares valued at $0.01 per share.
Some of you might say that this is all a bit of a conspiracy theory and that the whole thing could be just an unlucky coincidence and you might be right. Still, the ticker’s recent performance and the threat of future promotions certainly call for 
some extra caution which means that having all the facts in mind is absolutely crucial.
BLFR managed to close yesterday’s session in the green (albeit with only 1.7% in gains) which is more than can be said about other pumped companies like Xumanii International Holdings Corp (OTCMKTS:XUII) and North American Oil & Gas Corp (OTCBB:NAMG). Will BLFR put up a similar sort of performance in the coming sessions? We’re about the find out.
