Citadel Exporation, Inc. (OTCMKTS:COIL) Aims for Historical Peaks with Robust Buying
Another ticker related to oil and energy has reared its head, this time Citadel Exporation, Inc (OTCMKTS:COIL). The ticker is up on robust buying volumes, the highest in the past 10 months, and is getting revved to revisit the $2 heights of 2012. COIL went up more than 43% to $1.26. 
All of this is happening outside any recorded promotion, although the sudden activity and an almost fourfold spike in a month may invite professional pumpers. The company is moderately active with press releases, sharing mostly financial news and latest drilling agreements.
Financially, this newly- presented company stacks up with:
- $1.3 million cash
- $1.6 million total assets
- $202,948 total liabilities
- No revenues
- $418,389 net loss, $1.2 million net loss since inception
The only red flag here are the non-existent revenue streams, although COIL claims to have several drilling arrangements. According to a company’s press release, drilling has just started in one of its plots, Rancho Grande, reportedly to initial success. The company also acquired new acreage, but when that will come online as a potential revenue stream is still questionable.
While COIL seems to be on an upward trend, time will tell if this is sustainable. The company has enough credibility and a potential to go on, but negative sentiment and profit realization may bring the stock down on sales.
The promotional scene is never free of companies promising mining success. For penny stock companies, this is the best combination of a legitimate-sounding promise about unknown factors. One of the noisiest current promotions is for precious and rare metals miner, Trulan Resources, Inc. (OTCMKTS:TRLR). For this ticker, promotions help to bounce up from a bottom of $0.012 and a bit above 2 cents. Here, the trades may be more heated than with the way more expensive COIL. But with most penny stocks, it is sudden investor interest that dictates the trends, rather than reason.
In the past weeks, COIL traded sporadically, and it remains to be seen if high volumes will be preserved. But in any case, it is best to be cautious, especially if a company shows a propensity to large, disproportionate movements.
