Centor Energy Inc (OTCBB:CNTO) Taking In Water as the Promotional Budget Grows

Our latest article on Centor Energy Inc (OTCBB:CNTO) came out shortly after the opening bell on January 22. A few minutes later, the company itself decided to issue a press release and, having read through it, we can see that the optimism spurring out of it is plentiful.

It was an update from CNTO‘s CEO, James Sullivan, who said that the acquisition of the 55% working interest in the Pasquia Hills Shale Project has been one of the most exciting developments around the company. He also announced that a resource report from December 2013 has suggested that the profit margins, once drilling begins, will be huge and informed us that another study has began.

Perhaps more importantly, he told his shareholders that the company is on track with the payments necessary under the acquisition agreement and that he expects the purchase to be closed on February 16.

All in all, plenty of good news and we can see that because of the promising PR, some traders around message boards predicted that CNTO could reach $3 per share by the end of last week. At first, it seemed like they might be onto something.

The ticker registered two consecutive days in the green and closed January 23’s session at $2.95 per share. Then, suddenly, the tides turned and CNTO started sliding towards the bottom. Four days of heavy volume and massive losses followed and, after the 18% drop from yesterday, the ticker stands at $2.18. Early trading today seems gloomy as well. Half an hour after the opening bell, the stock is another 8% down, but we should note that there’s still time for a miraculous recovery.

And while CNTO is sinking, someone is splashing out more and more money on the pump. If you take a look at our previous articles, you’ll see that not more than a week ago, the total promotional budget stood at $500 thousand. When we opened the landing page today, however, we saw that it has grown to $2,145,000.

This means that CNTO‘s promotion is now officially one of the most expensive active pumps on the OTC Markets. But what will happen to the stock?

Having the bigger budget in mind, we won’t be surprised if we see some more touting. As you probably know, the newsletters who are, traditionally, one of the main methods of promoting stocks have been pretty inactive during CNTO‘s pump. Now that there’s more money to be spent, they might be able to get a piece of the action. That doesn’t necessarily mean that the ticker will be capable of recovering though. On the contrary, more pressure from the pumpers could prove quite catastrophic.

As for the company itself, they do say that they will be able to close the acquisition of the Pasquia property and we’re quite sure that the shareholders will be happy if the profit margins are indeed as impressive as the press releases suggest.

There is one problem though. According to the latest 10-Q, CNTO have less than $5 thousand in the bank and they haven’t announced any fresh financing. The lack of cash could put a rather big spanner in the works which is why, considering the risks carefully and thinking through every single move is absolutely crucial.

CNTO wasn’t the only pumped stock to take a plunge yesterday. Konared Corp (OTCBB:KRED) registered its second red session in a row and managed to rack up a dollar volume of around $6 million. Gray Fox Petroleum Corp (OTCBB:GFOX) faltered as well. It lost 17% while shifting more than $1.2 million worth of shares.