Norstra Energy, Corp. (OTCBB:NORX) Outdid Promoters’ Expectations
Some trees will grow better and faster when pruned, and it seems the Norstra Energy, Corp. (OTCBB:NORX) is following the same laws. After pumpers gave up on the energy stock, a hard week of corrections followed. But NORX managed to pull itself out with a series of press releases, and at the end of last week rested on the peak of a robust climbing trend, with even bigger buying volumes. 
NORX is riding the hype of fracking and oil sands, and is touting its engagement with the so called Bakken geological formation, a hopeful part of North America that is seen as one of the solutions to oil scarcity. Since its last press release on April 15th, and another analyst mention on April 22nd, NORX added more than 50% to its price. Daily volumes are around 1 million shares.
But the winning series was triggered by another promotional effort, this time a full email campaign with a budget of $236,500. Our system counted 33 emails this month, and the constant reminders explain the active volumes. NORX started on an upward journey even before the pumpers took it up, and thus attracted their attention. But let’s see if the stock at 63 cents is justified by the fundamental ownerships of the company, which are as follows:
- $8,000 cash
- Zero revenues in the exploration stage
- $20,000 net loss
With these numbers in mind, it is a boggle how NORX will manage to acquire rights to the valuable plots and start the technologically advanced and expensive production of tar sand resources. The biggest resource a company could rely on is a convertible note for $100,000, which could manage to affect stock levels and cause some dilution if turned into stock, but will hardly provide the funds needed for drilling.
The last email for NORX came from PennyStockProfessor.com. So far, NORX is the last campaign this pumper took up, receiving a payment of $12,500 for it. While NORX was risky when it charted the bullish trend on its own, involvement with a paid promoter is an even worse red flag. Promoted stocks tend to drop sharply once the pumpers back away. NORX already corrected once, by around 20%.
But the other picks of Penny Stock Professor paint a more ominous picture. I Ming Corp. (OTCMKTS:IMNG) jumped sharply on its December 2012 promotions, but later slid down 70%, with the most dramatic losses in the first days after the end of the pump.
The opening of the new week will show what direction NORX takes and if there is enough enthusiasm for this ticker. Be aware that NORX moves in disproportion to its fundamental business success, and if the enthusiasm wanes, you may lose a large part of your investment.
