Gray Fox Petroleum Corp (OTCBB:GFOX)’s Relentless Run Continues
It’s been nearly two months since the promotion for Gray Fox Petroleum Corp (OTCBB:GFOX) started and we should note that it hasn’t been all plain sailing. Back in December, it looked like the whole thing might be a dud as GFOX slid heavily throughout the whole month and hit a 52-week low on January 10.
Since then, however, it has been on an absolutely terrific run. It took GFOX just eight sessions to reverse the fall, break through the $1 per share barrier again, and hit a 52-week high of $1.65. It closed yesterday’s trading at $1.63 commanding a market cap of just under $58 million. The substantial trading volumes that we’ve seen over the recent week or so suggest that investors aren’t really too bothered about the numerous red flags surrounding the company.
They don’t seem scared by the fact that, according to the latest SEC filings, GFOX is in a rather big financial mess, for example. Here’s a summary of the most important figures as of September 30, 2013 once again:
- cash: $6,289
- current assets: $14 thousand
- current liabilities: $36 thousand
- no revenue since inception
- quarterly net loss: $317 thousand
GFOX‘s management team did succeed in securing some additional financing by selling 80 thousand shares of common stock at $1 per share, but it should be clear that this amount is far from enough to drag the company out of the development stage.
Investors also seem undeterred by the past of the people who are currently pumping GFOX. As we mentioned in our previous articles, touting is primarily done through a couple of landing pages written by Mr. Tobin Smith – the Fox Commentator who got fired from the media giant after his former employers found out that he’s been paid to tout the stock of another oil and gas company – Petrosonic Energy Inc (OTCMKTS:PSON).
Just to remind you, PSON‘s pump started in April 2013 when the ticker was hovering around $0.90 per share. Mr. Smith said back then that it could reach $3.50 to $4 within the next six months. Six months later, it was fluctuating around $0.35 and right now, it’s barely hanging on to $0.16.
He has set a near target for GFOX of no less than $6.20 and although the ticker has been putting on quite a show over the last couple of weeks, sooner or later, the enthusiasm will die down and it will take the plunge.
If that happens, many investors who are now buying in on the hype and optimism will get caught off-guard. Make sure you are not one of them.
There are two other pumps that are also doing surprisingly well. Konared Corp (OTCBB:KRED) gained another 3.78% while shifting nearly $1.5 million worth of shares yesterday. Centor Energy Inc (OTCBB:CNTO) registered a similar volume, but its ascend was even more impressive – the share price went up by 7.2% and closed the day at $2.68.
