Gray Fox Petroleum Corp (OTCBB:GFOX)’s Pump Seems to Have Run Its Course

We received the last promotional email about Gray Fox Petroleum Corp (OTCBB:GFOX) on February 21 and at first, it looked like the ticker might actually be doing a lot better without the help from the promoters, than with it. GFOX logged a couple of red sessions, but the losses were minimal while the jumps in the right direction proved to be much more substantial. In a matter of just one week, the ticker climbed from $2.15 all the way to $2.51, all the while registering some consistent volumes.

A wild session followed on March 3 when GFOX managed to shift more than 1 million shares while drawing an erratic movement on the chart. In just six and a half hours it managed to gap up, hit a 52-week high of $2.71, and close in the red. Unfortunately, it’s all been pretty much downhill since then. GFOX slipped below the $2 mark on March 4 and right now, a recovery seems highly unlikely.

Yesterday’s session was particularly painful. More than 750 thousand shares changed hands bringing the dollar volume up to around $930 thousand. In the meantime, GFOX was taking hit after hit. About an hour after the opening bell, it logged a 52-week low of $1.01 per share and although it managed to claw back some of the lost ground, it still finished the day around 22% below Monday’s close. So, what do the pumpers make of the drop?

We don’t really know because, by the looks of things, the promotion is well and truly over. As we mentioned in the first paragraph, we haven’t received any email alert for almost a month. Tobin Smith, the ex-Fox commentator who led the promotion has now moved on to another penny stock – HydroPhi Technologies Group, Inc f/k/a Big Clix Corp (OTCMKTS:HPTG) and he is showing no signs of getting back to GFOX.

The message boards seem eerily quiet as well and the only people talking about the company at the moment are traders who claim to have made some healthy profits by short selling the stock during the drop.

A Seeking Alpha article appeared on March 4 and according to its authors, the ticker was under serious threat of being suspended by the SEC. So far, the regulatory organ is letting GFOX run along and over the last three weeks it has put a stop on other promoted penny stocks like Petrotech Oil & Gas Inc (OTCMKTS:PTOG), Global Earth Energy Inc (OTCMKTS:GLER), and Suburban Minerals Corp (OTCMKTS:SUBB). That said, an abrupt end could come at any time, which makes trading even riskier.

As for the long run, GFOX don’t seem too keen on updating their shareholders. In fact, they haven’t issued any press releases since December and, as you probably know, that is an awful lot of time in the world of penny stocks. In addition to this, their company headquarters seems to be located in a virtual office, their latest 10-Q doesn’t look like much and although they did manage to raise some money through a securities purchase agreement with a Marshall Islands-based entity called Rooftop Investments, no one can guarantee that the fresh capital will be sufficient.

GFOX‘s performance over the last few months showed just how dangerous promoted penny stocks can be. Other tickers that are currently in the pumpers’ sights include American Heritage International Inc (OTCBB:AHII), Well Power Inc (OTCBB:WPWR), and Konared Corp (OTCBB:KRED).

Carefully considering the risks and doing a lot of due diligence before investing in any of these companies is, as always, absolutely essential.