Centor Energy Inc (OTCBB:CNTO) Gets a Second Pump
Centor Energy Inc (OTCBB:CNTO) received a pump back in May 2013, but it’s fair to say that the campaign turned out to be a rather big flop. The ticker did manage to register some green sessions and it did break through the $1 per share barrier, but the trading volumes were dismal and on the whole, it looked like nobody was paying attention. Not surprisingly, as soon as the touting stopped, CNTO started plummeting towards the ground and on July 31, it registered a 52-week low of just $0.10.
The people who stand behind Code Inc, the third party that spent $350 thousand for the pump were probably pretty disappointed and we’re quite sure that the same goes for the few investors that jumped in, lured by the promoters’ promises of wealth and fortune.
In reality, however, CNTO‘s financial reports show us that the terrible stock performance isn’t really all that surprising. The company has been around for almost three years now, but revenues are nowhere in sight and the balance sheet reveals some serious financial problems. Here’s a summary of the most important figures as of September 30:
- cash: $4,530
- current assets: $17 thousand
- current liabilities: $439 thousand
- quarterly net loss: $166 thousand
- accumulated deficit: $429 thousand
It’s no wonder that few people showed any sort of interest in the ticker between July and November. A quick look at the chart, however, shows that right now, things are starting to change. CNTO finished the year on a positive note registering three consecutive green sessions and cumulative gains of around 76%. On Tuesday, it even managed to log a record-breaking $1.94 million in dollar volume. So, what’s all the commotion about?
It would appear that December was quite an eventful month for CNTO. The name was changed from Centron Inc. to Centron Energy Inc, the management team went through an overhaul, and they completed a purchase agreement for a 55% working interest at a property which, supposedly, contains over 1 billion barrels of recoverable oil. No details around the deal are revealed and we reckon that they’re quite important, considering the figures found in CNTO‘s 10-Q, but even so, the vast amount of oil has proven to be a sure-fire way to grab investors’ attention.
It has also caught the eye of the pumpers who are now carrying out a second promotion on the ticker. Once again, the paying party is called Code Inc, the pump involves a landing page as well as a few email alerts but this time, at $500 thousand, the budget is even bigger. So far, it’s proving to be attracting a lot more buzz when compared to the first campaign but can this stop CNTO from repeating the drop that it experienced during the summer?
The terrible financial state, the horrific promotional history, and the numerous unknowns around the company suggest that consistent growth will be really hard to achieve.
There is one more thing worth bearing in mind. The landing page (which sports an initial price target of $8 per share) was put together by a person called John Myers who said back in the summer that Homeland Resources Ltd. (OTCMKTS:HMLA) could be one of the best picks of his career. We reckon that the chart on the right speaks volumes about his track record.
Make sure you tread carefully and exercise extreme caution when considering the risks of a potential investment in CNTO.
