North American Oil & Gas Corp (OTCBB:NAMG) Continues To Drop Despite Pumps
On Dec. 9 North American Oil & Gas Corp (OTCBB:NAMG, NAMG message board) officially announced their financing plans. A letter of agreement for the purchase of 1 million dollars worth of stock by a German investor – Oel und Erdgazforshung AG – was made public. The transaction was scheduled to occur over a period of six months, in five tranches 200 thousand dollars each. The agreement specified that the shares will be sold at a 10% to 15% discount.
What followed the announcement were a couple of consecutive paid pumps all throughout the week by promoters such as SuperSt0ckPlays, BuyPennyStocks and Orbitstocks, with advertisements growing more frequent and aggressive as the weekend grew nearer. Apparently the over-enthusiastic and optimistic e-mails didn’t do much good. All in all, barring the two occasions when NAMG stocks dropped but were able to stabilize by the session’s end, the pattern for NAMG‘s share prices since the beginning of the month is a pitifully rapid descent. The most recent fall occurred on Friday Dec. 13, when share prices opened at $0.75, got as low as $0.65 by mid day and failed to rise above $0.66 by the end of the trading session, registering a 8.97% drop in value.
It is clear now that NAMG will need more than paid pumps to get itself going again. Although it’s been actively traded on the open market, with daily transactions numbering in the hundreds, it just seems to be sinking lower and lower in the penny stocks’ price list.
This is, for the most part, due to the company’s business shrinkage in recent months. In their 10-Q for the quarterly period ended Sept 30 the company reported that it presently had cash and cash equivalents totaling $5,440. A worryingly low amount, if you take into account their report from December last year, when they had almost 10 times that much on hand. Most of their other assets have similarly shrunk.
In its most recent financial report the company has also declared a 1.2 million net loss and a less-than-sparkling asset-liability balance. Their failure to turn a profit is also something worth considering, as is the involvement of Tobin Smith – a well known promoter with a controversial career – whose name can be found in the disclaimer of each of their recent pumps.
