New Western Energy Corp. (OTCMKTS:NWTR) Pump Turns Red
The ongoing pump campaign for New Western Energy Corp. (OTCMKTS:NWTR), one which comes in a long line of pumps and which opened last Sunday, took a sour turn yesterday. NWTR closed 15% down on heavy volume, dropping to $0.22 per share.
The new round of pumps opened with several emails arriving over the weekend. More touts came through over the next few two and helped NWTR‘s price climb nearly 50% in two sessions. The pumpers used a research report issued by Zacks Small Cap Research that set a price target for NWTR almost ten times above its current levels.
Traders may want to keep in mind that Zacks & Company and Zacks Small Cap Research are separate entities and the report’s disclaimer specifically states that the information contained in it is “not guaranteed as to accuracy” or tailored to meet the needs of “any investor”.
NWTR is a company drilling for natural fuels in several locations across the United States. The company recently announced the completion of the drilling works on its second of three wells in its B&W Ranch Lease located in Kansas. The drilling showed resource formations that are known to be commercially viable within the area. Despite the broad and non-specific formulation of this information in NWTR‘s press release dating back to Monday, traders hopped onboard and the buying sent the stock 25% up. After another day of climbing, yesterday NWTR was once again pressed towards the $0.20 mark where it has been fluctuating over the last couple of months. The drop was not too surprising, considering some of the promoters announced a new pick coming.
Here is what NWTR had in its latest financial report for the quarter ended March this year:
- $792 thousand in cash
- $520 thousand current liabilities
- $19 thousand in quarterly revenues
- $180 thousand in quarterly net loss
While the company may be onto something in case the exploration of its land leases yields sufficient resources, the previous stock pumps for NWTR that either sent the stock crashing after a quick climb or didn’t manage to move the price by much don’t inspire a lot of confidence that this time around things will be any different.
Yesterday’s most heavily traded OTC companies included other names that moved in double-digits. Among those were Arch Therapeutics, Inc. (OTCBB:ARTH) – another recent pump that closed another 22% down. Premier Brands, Inc. (OTCMKTS:BRND) closed the session 36% up, almost making up for Monday’s hiccup.
