North American Oil & Gas Corp (OTCBB:NAMG) Drops Below $1

North American Oil & Gas Corp (OTCBB:NAMG) has been on the decline for quite a while. On August 9, just over a month ago, it was comfortably sitting around the $1.50 – $1.60 range and it seemed like everyone was quite happy with the way things were shaping up. Then, the 10-Q covering the second quarter of 2013 came out and it revealed some painful truths.

Most importantly, it showed us that NAMG is in a deep financial mess and it illustrated us just how ridiculous the $95 million market cap was. Predictably, the share price suffered big time. Nevertheless, the pumpers persisted and although the additional boost was not enough to bring the ticker back up to its former heights, it did manage to soften the fall somewhat, keeping the value above the $1 per share barrier.

On August 26, however, NAMG took another blow and this time, the consequences appear to be more severe. A Seeking Alpha contributor under the nickname Penny Stock Realist published an article in which he expresses his opinion on the ticker. As you can see for yourself, he’s not particularly fond of it and, sure enough, the price took a beating once again. The pumpers saw that things are turning pear-shaped really quickly and they engaged a counter-attack. Surprisingly enough, although most of the traders were already aware of what’s going on, NAMG managed to log a couple of green sessions. Despite the promoters’ best efforts, however, the overall direction has been down. Yesterday, NAMG lost a further 11% of its value meaning that it closed below the $1 per share mark for the first time in over a month. The question now is: “What happens next?”.

Unfortunately, we can only speculate. Tobin Smith, a former Fox Commentator, has urged us many times to get in on NAMG before he tells the whole nation about it. If he does go on television and start talking about the company’s enormous potential, the price might make another run. Then again, we doubt that Mr. Smith will ever mention NAMG on TV. Not least because he got fired from Fox when his former employers found out that he’s been receiving money for pumping Petrosonic Energy Inc (OTCMKTS:PSON).

With TV touting out of the way, it’s up to the Internet promoters and today’s alert from Investor Planet proves that they are not ready to throw in the towel. Just like so many other promotional emails on NAMG, it contains the same old optimistic projections from Tobin Smith and it gives us no new information whatsoever. When we checked out the annoyingly fine print at the bottom of the page, however, we were rather surprised. It would appear that the promotional budget has grown once more.

When we wrote our last article a couple of weeks ago, the amount of money shed on the pump was hovering around $1.3 million. According to Investor Planet’s email, the budget is now $1.9 million. Peculiarly, the landing page that was set up quite a while ago discloses a compensation of around $1.75 million. Whatever the actual budget, the fact that the amount of cash splashed out on the campaign is growing suggests that we might see a bit more touting in the future.

Whether this will give the price another boost, however, is another matter. We can see that despite the increased mailing activity over the last few days, NAMG is refusing to break the downward trend. Other tickers like Kleangas Energy Technologies Inc (OTCMKTS:KGET), on the other hand, didn’t give traders even a glimmer of hope for a profit, despite a rather sizable promotion.

This goes to show that you should be extremely careful when you are dealing with pumped penny stocks. And when the budget is as big as the one for NAMG, the risks are even more substantial. Make sure you have this in mind while making your investment decision.