Midwest Oil and Gas Inc. (OTCMKTS:MWOG) Explodes On Pumps
Midwest Oil and Gas Inc. (OTCMKTS:MWOG) made an astonishing 645% jump yesterday, fueled by a massive paid pump promotion by Topline Marketing.
Without a doubt, this is the biggest paid promotion that the OTC Markets has seen in moths, with a ticker being taken from illiquidity to the list of the top traded companies virtually overnight. But how long could this state of developments last?
While we can’t really know that for certain, there are quite a few unsubtle clues that hint that the ticker is not likely to maintain its pump-gains for long. And how could it?
After all, crashing after a sudden rush at the charts is what pumped-up OTC Markets tickers do – and, after some due diligence is done, it becomes readily apparent that MWOG has all the characteristics of a classic textbook pumpjob.
We’re looking at a company with almost nothing but debt to its name:
- Total current assets – $0
- Total current liabilities – $1.2 million
- NO REVENUES EVER
- Loss for the period – $235 thousand
A surprising enough detail that can be found in the company’s reports is the lack of any sort of toxic debt. However, diligent and perceptive investors would have also noticed that in 2014, the company paid for an acquisition with 15 MILLION shares of common stock, each worth $0.2. Those shares are still unaccounted for, and for all we know, they may still be a threat to investor value.
Investors should really take that into consideration whey eyeing MWOG. This is, without a doubt, one of the most volatile jumps that we have seen in a long while, and it could turn disastrously wrong at any moment – which is why due caution is doubly advised.
