North American Oil & Gas Corp (OTCBB:NAMG) Flying High Again

North American Oil & Gas Corp (OTCBB:NAMG) is not the most active penny stock when it comes to press releases. In fact, until yesterday, the latest headline to greet you on their Yahoo! Finance profile was the Seeking Alpha article that we wrote about in our previous coverages and we were wondering why they are so reluctant to provide their shareholders with an update for so long.

As it turns out, they were probably quite busy doing some research on their properties and when the opening bell rang yesterday, they decided that sharing the information with the people who have their money invested in the ticker will probably be a good thing. Sure enough, things sound as exciting as ever.

NAMG say that they have completed the analysis of the 3-D survey covering the Tejon Area. This will help them prioritize the drilling sights, estimate the costs and the risks and on the whole, they say that they have completed a major step in their effort to finally start making some money. What’s more, they say that they found some traps that they never knew about which means that the oil and gas to be pumped out of the ground is more than anticipated.

Sounds good and a quick look at the chart reveals that traders responded accordingly. In just six and a half hours of trading, NAMG gained as much as 13%. More impressively, the ticker registered a record-breaking trading volume of more than 1 million shares and it would appear that, after the horrific crash caused by the less than impressive figures contained in the latest quarterly report, it’s now ready to get back to its former glory.

Of course, as we mentioned yesterday, NAMG is not moving solely under its own steam. The pumpers are helping as well and a few hours after yesterday’s closing bell, we received a few more emails from the newsletters related to Sherwood Ventures LLC. The landing pages are still as active as ever and it would appear that, instead of slowing down, the promotion is actually starting to pick up steam once again.

The fine print found at the bottom of the pump websites as well as in the email alerts was edited a couple of times throughout the last two months and we witnessed the total budget grow from just $340 thousand all the way up to $2.1 million (as disclosed by some of the emails). A huge affair, you would agree and normally when this much money is being shed on a stock promotion, the conventional methods are just not enough.

We’ve been witnessing Refill Energy, Inc. (OTCMKTS:REFG) being featured on radio commercials over the last couple of weeks but the people trying to inflate the price of NAMG have decided to use the good old hard mailer brochure. At least that is what a user on iHub reports.

Does that mean that the ticker will go back to $1.60 or even higher? Not necessarily. The fact that more and more awareness is being spread around and the increasing amount of money being blown on pumping a stock can not guarantee a surge in the right direction. Media Analytics Corp (OTCBB:MEDA) who got a $3.8 million promotion illustrate the point perfectly. As you can see, the touting did result in four consecutive green sessions, but after that, it all went badly wrong. Alkaline Water Company Inc (OTCBB:WTER) is another example of a multi-million dollar pump gone sour. As you can see, WTER incinerated around 60% of its value in just three sessions and while it’s currently showing some signs of recovery, it will probably never reach its former heights.

NAMG also suffered badly because of the increased awareness already and unfortunately, at this point, there’s nothing to stop the fall from repeating itself. That’s why, carefully considering the risks is absolutely essential.