More Emails Help North American Oil & Gas Corp (OTCBB:NAMG) Get Back On The Map
The pump for North American Oil & Gas Corp (OTCBB:NAMG) was going along pretty well until August 12. Mr. Tobin Smith’s optimism had been spread around emails and landing pages and the chart movement suggested that it was quite contagious. The ticker had gained more than 130% in just over two weeks and the more inexperienced traders believed that the only way from there was up.
Unfortunately, NAMG had to file the results for the second quarter of 2013 and as soon as they did it, the proverbial penny dropped. We’ve covered the company a fair few times since then and if you are a frequent visitor of our website, you probably know how dreadful NAMG‘s situation is. Predictably, the horrific figures wreaked havoc with the chart movement and in a matter of just six and a half hours, the ticker managed to lose around a quarter of its value.
Quite a lot of people got burned during the drop and the disappointment was hard to swallow. The pumpers, however, showed an enviable degree of persistence and instead of moving on to the next penny stock with questionable long term potential, they continued to spread Mr. Tobin Smith’s optimistic price targets. That said, they probably wouldn’t have done it if it wasn’t for the fact that the third parties were shedding more and more money on the promotion. As we mentioned, the budget disclosed was edited a few times and after the latest correction, it stands at a whopping $2.1 million.
Some erratic stock movements followed and although the waves of alerts over the email managed to entice the ticker into registering a few green sessions, the overall direction was south. This really shouldn’t have been that much of a surprise since any value of over $1 per share brings NAMG‘s market cap above the $60 million mark and that really is too much for a company that has less than $40 thousand in the bank, no revenue, a negative working capital of $542 thousand and an accumulated deficit of more than $1.4 million.
On September 11, NAMG closed below the $1 per share mark for the first time since the beginning of the promotion and many people thought that the pump is done for and that the ticker will never manage to get back up again. Reality, however, turned out to be a little bit different.
On Sunday, Haywire Viral Marketing sent out a couple of alerts and yesterday, Investor Soup, Stock Hideout as well as the rest of the Sherwood Ventures LLC owned newsletters also jumped in. Of course they didn’t do it for free. Haywire disclosed a $4 thousand compensation from Genius Marketing, the third party mentioned in the fine print found on the landing page. Sherwood received a more substantial $20 thousand from an entity called Think Ink Marketing LLC. Whether Think Ink and Genius are in one way or another connected remains unknown, but the possibility of even more people paying to hype the ticker is certainly disturbing.
The effects on the price movement yesterday were not that dramatic as the ticker had already begun to bounce, but the increased trading volume suggests that quite a lot of people trusted the emails and jumped in. Does this mean that the upward trend will continue?
Time will tell, but if the promoters’ track records are anything to go by, the ticker could be in for another drop. Before taking on NAMG, Haywire sent out a couple of emails about Axxess Pharma Inc (OTCMKTS:AXXE) on September 3. Since then, AXXE has lost around 60% of its value.
The Sherwood Ventures newsletters’ latest pick also went disastrously wrong. They tried to tout Petrotech Oil & Gas Inc (OTCMKTS:PTOG) on September 17 and right now, five trading sessions later, PTOG‘s shares are around 43% cheaper.
