Horizon Energy Corp (OTCBB:HORI) Gets Pumped Yet Again
If you click on this link, you might be a bit confused by our article’s headline. Our database actually shows that this is the first promotional campaign for Horizon Energy Corp (OTCBB:HORI). That, however, is not strictly the case.
The company was called Solar America Corp. until nine months ago and it was traded under the symbol SOLX. SOLX became the target of numerous paid pumps and it’s fair to say that the results were less than impressive.
Now, the promoters are all over the company once again. SixFigureStockPicks, along with their affiliated newsletters received $12 thousand to tout HORI and they say that it could be the “most exciting oil & gas play ever“. OpeningBellReport (who pocketed $1,000) also jumped in and tried to draw some attention.
The volume spikes seen over the last couple of days show that the awareness campaign is having an effect on the stock performance. Yesterday’s session, for example, ended with a 12% jump and $667 thousand in dollar volume. Currently HORI stands at $0.37 per share which results in a market cap of nearly $18 million. The question is: “Does it really deserve it?“.
The press releases coming out of the company headquarters don’t sound too bad. On March 20, HORI said that they’re looking for partnerships in the oil and gas industry, a week later, they engaged the services of a consulting company, and on April 4, they announced the signing of an option agreement for an oil and gas lease located in Webb County, Texas.
Clearly, there’s no shortage of optimism spurring out of the press releases and if you go through the promotional emails, you’ll see that the pumpers are taking full advantage of it. Read the latest 10-Q, however, and you’ll see that things might not be quite so bright. Here’s a summary of the most important figures as of September 30, 2013:
- cash: $20 thousand
- current assets: $27 thousand
- current liabilities: $121 thousand
- no revenues
- quarterly net loss: $67 thousand
Of course, the financials above are now more than six months old and things might have changed since then. Unfortunately, HORI were not able to publish their 2013 10-K on time which means that investors are left in the dark for now.
The annual report should give us a better understanding of what the company’s situation is at the moment. Until then, considering the paid pump and the risks associated with it is absolutely essential.
As we mentioned already, HORI (albeit under its previous name) has a history of caving in under the promotional pressure. The pumpers’ track records aren’t exactly confidence-inspiring either.
SixFigureStockPicks, for example, promoted Suburban Minerals Corp (OTCMKTS:SUBB) on February 27. The touting did result in one or two green sessions, but on March 7, just eight days after the emails, the SEC decided to step in and put an end to the pump. Trading was suspended for two weeks after which it resumed on the Grey Market. Currently, SUBB is sitting at $0.06 per share which is around 65% below the levels achieved during the pump.
