Gray Fox Petroleum Corp (OTCBB:GFOX)’s Pump is Picking Up Speed

As you probably know already, Gray Fox Petroleum Corp (OTCBB:GFOX) became the target of a promotional campaign last month when some newsletters along with Mr. Tobin Smith started touting the ticker, giving it abnormally large price targets. The budget exceeds $270 thousand which is a relatively high amount of money for a paid pump and yet, the stock performance isn’t really perfect. There’s been ups and downs and although the ticker is still hanging to the $1+ levels, small trading volumes suggest that not a whole lot of people are paying attention. Is that about to change though?

Well, it seems that the pumpers want to spread the word around. We last wrote about GFOX last week and since then, quite a few new players have joined the promotional team. Awesome Stocks pocketed $20 thousand, The Bull Report received $15 thousand, David Cohen was compensated $25 thousand and they are all sending alerts over the email as we speak. We can even read reports around the message boards about a hard mailer campaign.

We have yet to confirm if this is indeed the case, but it’s clear that someone is desperate to create some hype around GFOX which, in turn, raises the risk even further. We’ve already mentioned in our articles that the SEC has been hard on the heels of large scale penny stock promotions and many people are currently speculating on the possibilities of more tickers getting the axe.

The regulatory organ’s recent actions might be making some of the traders (even the ones who love to play a paid pump every once in a while) a bit nervous and, we reckon, rightly so. On the other hand, there are also quite a few red flags that can deter potential investors.

For one, as we mentioned last week, GFOX‘s financial situation is quite horrific. They have just $6 thousand in cash, no revenues, and current liabilities of around $36 thousand. They have managed to complete a couple of private placements, but most of the proceeds will be spent on the acquisition of the Nevada oil and gas leases Tobin Smith is so excited about. This means that if explorations is to start at all, GFOX will need to raise some more money.

What’s more, as we also mentioned in our previous article, more than 14 million (post-split) shares were issued to unnamed investors for next to nothing back in October 2012. The discounted stock presents a massive opportunity for a profit at the moment and the people who got the shares can take advantage of it at any time.

When you check out the filings, you’ll see that the administrative office at 3333 Lee Parkway in Dallas, Texas is provided by the new CEO and President at no cost, which wouldn’t have been so bad if it was a real office. If you check out this link, however, you’ll see that the same exact address (including the number of the suite) is offered as a virtual solution.

And since we mentioned the new CEO, we should also probably give you a small detail that, if overlooked, might cause some confusion. The person currently steering GFOX is called Lawrence Pemble and if you look him up on Google, you will most likely find out that a person by the same name is the COO of a NASDAQ-listed healthcare company called Chindex International, Inc. (NASDAQ:CHDX).

The name might be identical, but CHDX‘s COO has absolutely nothing to do with GFOX. In fact, the filings inform us that “the multi-billion dollar energy play of 2014” as the pumpers like to call GFOX, is run by a twenty-five year old who, according to the documents, has worked for some unnamed mineral exploration companies and lives in the UK.

And while GFOX is struggling to gather attention from the investing public, Makism 3D Corp (OTCBB:MDDD) is certainly the talk of the town. As you can see from the chart on the right, trading volumes have been absolutely huge ever since the first day of the $2.75 million promotion. That said, the stock performance has left much to be desired.