Gray Fox Petroleum Corp. (OTCMKTS:GFOX) Bombs After Record Dumping of Shares
We have been following the pump campaign for the stock of Gray Fox petroleum Corp. (OTCMKTS:GFOX) ever since it began more than two months ago. Despite failing to influence the performance of the stock for most of this time the artificial hype finally started to yield results with the start of 2014. The January 10 session saw a sudden change in investors’ sentiment and the stock started to form a truly impressive climb. In the next eleven sessions GFOX closed in the red only once and it managed to rise from share prices below 80 cents to more than $2.2.
As we said in our previous articles the climb was supported by a couple of rounds of email alerts from various newsletters. They revealed that the total promotional budget paid by Cenad, Ltd. had increased to $531 thousand. And yesterday the people behind the promotion might have decided to take their profits at the current overly-inflated prices.
The session began extremely positive once again. The stock was steadily climbing up and it almost reached $2.75 per share when the dumping of stock began. In less than an hour GFOX wiped a full dollar of its price and ended the day at $1.81. As a whole more than 2.5 million shares were sold on the market nearly tripling the volume from the previous session. In early trading today the stock is falling further down losing another 20% and dropping to $1.41 per share.
Taking even one look at the financial state of the company will make it quite obvious that GFOX‘s current prices are grossly disconnected from the reality of the company. In the quarterly report filed last Friday they revealed the following numbers:
• $29 thousand cash
• $41 thousand current assets
• $23 thousand current liabilities
• no revenue
• $526 thousand net loss
Even the recent sell of 80 thousand shares priced at 1 dollar each to Rooftop Investments Ltd will do little to help them avoid even harsher corrections when the pump ends.
Currently the market is still being dominated by the hype around the marijuana industry which is even now attracting new companies. Yesterday Rightscorp, Inc. (OTCMKTS:RIGH) added 212% to its share price closing at $0.0025 and joining other extremely cheap marijuana plays like Latteno Food Corp. (OTCMKTS:LATF) and Alternative Energy Partners. (OTCBB:AEGY). Kepp in mind that at such low price levels the stocks are capable of correcting equally as fast.
