North American Oil & Gas Corp (OTCBB:NAMG) Loses A Quarter

It was a good run but it had to end somewhere. North American Oil & Gas Corp (OTCBB:NAMG) registered a whopping ten green sessions in a row and jumped from around $0.70 on July 29 all the way up to $1.60. It also registered a new 52-week high of $1.67 during Friday’s trading session. It had to stop somewhere, however, and those who were unaware of that got badly burnt.

Unfortunately for the third parties paying for the expensive promotion, NAMG is a publicly traded company and as such, it is required to file the results for the second quarter of 2013. Instead of telling you how bad the financials are, we’re simply going to summarize the figures and let them do the talking:

• cash: $39 thousand
• current assets: $86 thousand
• current liabilities: $639 thousand
• revenue since inception: $0
• quarterly net loss: $326 thousand

These figures alone don’t do much justice to the way NAMG is performing which means that you have to put them into perspective and compare them with their counterparts from previous quarters. If you do that, you’ll find that in just three months the cash reserves and the current assets have decreased by around 65%.You’ll also see that the liabilities have increased and before you cheer about the shrinkage of the net loss, we would like to point out that the lack of revenues means that the figure in this particular section of the report is not that important.

So, what does the future hold? Well, if you’ve been following our articles closely, we don’t need to tell you that there’s quite a big promotional campaign running for NAMG. It all started about a month ago when the newsletters mentioned the ticker. Their arguments were pretty much the usual promises for technical indicators showing the the stock will explode in the near future and “reports” telling us that the domestic oil production is the next big thing. Then, a few days later, a landing page was set up and it was authored by none other than former FOX commentator, Mr. Tobin Smith. We’ve covered some of his previous pumps before and we’re familiar with his style but even so, we were amazed at how many times he uses the words “real” and “urgent”. We’re also rather baffled by the $5 per share price target since even before the miserable Q2 results, NAMG failed to convince us that they’re going to set Wall Street on fire.

Mr. Smith apparently had a different opinion, but that said, it might have been modified by the $20 thousand that he received for his efforts. His compensation, however, was nothing compared to the initial promotional budget of around $340 thousand. We say “initial” because a few weeks after the pump began, the landing page’s disclaimer was edited and it then stated that the total amount of cash paid for the campaign is around $940 thousand, which officially made it one of the most expensive active pumps in Pennyland.

Now that the horrific 10-Q came out, however, you would expect that the pumpers will run away with tails between their legs or that, at the very least, they’ll wait for the dust to settle a bit. You’d be wrong

Trader Central (TC) sent us a new alert earlier today and it contains the same overly optimistic words written by Tobin Smith as well as links to some reports that contain even more bright promises of wealth and fortune. A quick check at our database reveals that TC have taken part in the pumps for Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII) and Arch Therapeutics Inc (OTCBB:ARTH) and, as you can see from the charts on the right, the performance of the two tickers is less than impressive. But let’s leave XUII and ARTH alone and focus on NAMG.

As always, we opened TC’s email for NAMG as soon as we received it, and we must say that the pumpers have surprised us again. According to the fine print at the bottom of the email the promotional budget now stands at exactly $1,139,444 which goes to show that someone is still spending money on pumping NAMG.

What does that mean? Does it mean that we’ll get another batch of emails really soon? Will the pumpers deploy a paper mailer campaign? Will NAMG‘s stock price score another impressive run? Only time will tell. One thing is for sure – treading carefully and being extremely cautious is absolutely essential if you still decide that playing the pump is worth the risk.