Game Over for New Western Energy Corp. (OTC:NWTR)
Yesterday New Western Energy Corp. (OTC:NWTR) was supposed to recover from a ‘healthy pullback’, or so pumpers wanted to believe. However, reality caught up with the company and the stock went crashing down. NWTR closed $0.33 or over 37% down, obliterating hundreds of thousands of hopeful investor dollars.
The company was targeted by promotional emails repeatedly, the latest round starting in early December. The pumps drove the price up to the inflated values of over a dollar that NWTR reached for a couple of days before the drop. The most amusing among promoters went so far as to say that Monday’s 15% drop in price was a ‘healthy pullback’, implying the stock would go up again after a momentary hiccup. Obviously, that is not the case.
Investors are now looking at a NWTR that has been deflated below its pre-pump levels. Anyone who bought at the start of the brief run and walked away in the first few days of 2013 may be sitting on some profit right now. However, all those who got in a little later, believing the pumpers’ promises of long term gains and a sustained rise in price due to the hyped acquisition of land in Oklahoma, are now looking at losses of about 50%.
The company had little to show in its books that could excite investors in the first place. The latest official figures provided by the company are dated September 2012 – hardly much of an additional incentive due to their outdated nature:
- $33 thousand in cash assets
- $283 thousand in current liabilities
- $321 thousand net loss up to Q3 of 2012
Obviously the acquisition of the 150 acres in Oklahoma didn’t manage to win investor support. That could have partly been due the dilutive payment consisting of 400,000 newly issued common shares plus two convertible notes for another $300 thousand. Combined with the fact that neither the press release, nor the official 8-K filing for the acquisition included any estimation of how much oil the new plot of land holds, the news seems to have done NWTR a disservice.
Pumpers VIP Penny Stocks seem to have abandoned NWTR, now that the stock has been crushed on a record-volume day. We tried to warn investors as early as Jan. 2 that this giant was trudging along on feet of clay. Everyone who did not get out of this on time despite the warning signs will probably be a lot more careful when trading penny stocks in the future, especially when they are promoted.
