How Much Lower Will Black Stallion Oil and Gas Inc. (OTCMKTS:BLKG) Drop?

Black Stallion Oil and Gas Inc. (OTCMKTS:BLKG) managed to shed another 7.27% of its market cap in yesterday’s session, ending up on the dollar threshold. So how low can it go?

About four weeks ago, SeekingAlpha published an article warning investors to stay clear of BLKG, because it could lose 80% of its market value. Although such a verdict seemed a bit harsh at first glance, that turn of events certainly did not look impossible, and in fact it appears more probable with each passing day.

The fact that the company has already lost almost 50% of the market cap it had at the peak of its September 2015 climb speaks loudly enough in and of itself. Such a slide is anything but unexpected. We have discussed the company’s horrible financials on multiple occasions in the past. That enough should be sufficient to keep investors on their toes.

Add the fact that two years ago, BLKG sold almost 20 MILLION shares of its common stock for $49 thousand. If the shareholders owning that stock haven’t taken their profits yet, they could be sorely tempted to do so at this point in time – before the ticker crashes to under a dollar.

All things considered, BLKG had a good explosive run. $150 thousand worth of paid pumps can, and most often do manage to give a ticker that, at the very least. However, experience teaches that even the most persistent pumps inevitably fail, and when they do, the results are more often than not disastrous for anyone that’s still hanging on to shares of the company in question at the time.

Investors are advise to note well that this does not mean that there is no money to be made from BLKG. Quite the opposite – one may still find opportunities for profit, should the ticker stabilize or bounce like a dead cat. However, trying to capitalize on such opportunities is extremely risky to say the least. All who attempt such a thing should be extremely careful and vigilant.