Duma Energy Corp. (OTCBB:DUMA) Heads For The Sky
Despite the high price levels of Duma Energy Corp. (OTCBB:DUMA) they made a remarkable run during yesterdays session. They gained more than 18% or around $0.4 to close at $2.43. The 200 thousand traded shares were also quite significant at these price ranges.
A major reason that sparked such widespread interest in the stock must have been the newly started pump campaign. The sums involved in the promotion are quite substantial with TooNiceStocks pocketing the whopping $350 000 for a month-long usage of their services. Stock Appeal, llc. also joined in for the considerably smaller compensation of $25000 and it immediatley started touting DUMA through its affiliates StockHunter, LiquidPennies and HeroStocks. The paying party for the whole pump is Cambridge Consultants, an entity that became active just this month with this being its second promotion.Back in February HeroStocks took part in the pump for Maxwell Resources, Inc. (OTCBB:MAXE). Despite the horrific results and the massive losses they still bagged $100 000.
In all the alert emails DUMA was praised for its outstanding financial foundations and that;s why we decided to check them for ourselves. Their latest report is a 10-Q form for the period ending January 31 and it contained:
- $790 thousand cash
- $1.7 million total current assets
- $5 million total current liabilities
- $1.6 million revenue
- $481 thousand net loss
The company has a lot going on for them. Unlike almost all of the other pynnt stock companies operating in the sector, DUMA have real business operations and are producing oil and gas thus generating impressive revenues. Another rarely seen sight is the formal application for NASDAQ listing submitter on April 2.
A big point of concern though is the net loss of $38 million listed for the six months prior to January. This is mainly attributed to the recent acquisition of Namibia Exploration, Inc. (NEI) and according to the terms of the deal they may issue up to 22,4 million common shares to them in the next 10 years.
The curious part about this deal is that it is a related party transaction meaning that NEI was directly and indirectly owned and controlled by DUMA‘s CEO, his brother-in-law and his father-in-law. The outcome of all this is that now the company has 39% working interest in a 5.3 million-acre concession in the Republic of Namibia with no proven or probable reserves of oil or gas for now. This goes for atnother much talked about property of theirs – the Galveston Bay.
DUMA may continue climbing even higher with the support of PR news and alert emails. But even experienced traders may find it difficult to play the ticker due to its high volatility even at these prices. If you are considering making an investment in the company be sure to do your own due diligence beforehand and decide on an acceptable time horizon.
