North American Oil & Gas Corp (OTCBB:NAMG) On The Rise Once Again
Last month was an eventful one for North American Oil & Gas Corp (OTCBB:NAMG). Active trading started around July 12 and after a few green sessions, the ticker reached $1.07 per share. Then, on July 17 it started to slide down and despite the odd green session, by July 29 it was already at $0.69. What followed, however, was quite impressive. NAMG registered a total of five days all ending in the green and when Friday’s closing bell rang, the price was standing at $1.17.
This means that the performance is not what you’d call “steady”, but, more importantly, it also means that NAMG‘s market cap stands at around $70 million. That’s rather a lot for a company that has the following numbers in its latest quarterly report:
- cash: $113 thousand
- current assets: $250 thousand
- total assets: $481 thousand
- current liabilities: $587 thousand
- no revenue since inception
- net loss (first quarter of 2013): $716 thousand
- net loss since inception: $1.1 million
It’s pretty clear that NAMG are still deep in the development stage and although they seem quite optimistic about the future, there can be absolutely no guarantees that anything significant will happen any time soon. Is that the biggest problem however?
It isn’t. The most worrying thing about a potential NAMG investment is, in fact, the large-scale pump that’s been running for the past three weeks. The emails started arriving in our inbox around July 14 and, initially, the newsletters involved were Penny Stock Circle as well as the rest of the Global Marketing Media LLC controlled pumpers. During the next couple of days other promoters like Surfs Up Stocks, Penny Stock Crowd as well as a few smaller outfits joined the party and the latest email that we have managed to intercept was sent on July 29 by The Stock Junction.
Compensations range from $7 thousand all the way to $35 thousand and most of the newsletters received their checks from an entity called Lake Group Media, Inc. This is not the first time this company pays for a stock promotion and a quick look at our database reveals that they have shed some money on the March pump for Sovereign Lithium Inc (OTCMKTS:SRBLD) f/k/a Great American Energy, Inc. As you can see from the chart on the right, the performance has been rather disappointing.
Still, the newsletters have been keeping quiet for a week now and you might be thinking that the performance NAMG displayed over the last couple of sessions is actually due to something more than artificial hype. That’s not exactly the case.
The promoters have not limited themselves to using only the emails as a pumping vehicle. A special landing page with a disclaimer revealing a $340 thousand budget was set up around the second week of July and it’s still live which means that it 
still gets inexperienced investors excited.
What’s more interesting, the report featured on the aforementioned website was written by our old friend, Mr. Tobin Smith. In case you haven’t been following our articles closely, we should point out that the same person touted Petrosonic Energy Inc (OTCMKTS:PSON) for quite some time. When Fox Business Network, Mr. Smith’s former employer found out about it, they fired him which turned PSON‘s disappointing performance into a disastrous one.
Brazil Minerals Inc (OTCBB:BMIX) whose stock also got pumped by Mr. Smith and his NBT Equities Research, suffered pretty much the same fate, which puts some additional question marks around NAMG‘s future performance.
PSON and BMIX were also touted through some paper brochures distributed over the snail mail and while we haven’t seen evidence of a similar campaign being set up for NAMG, we wouldn’t be at all surprised if that happens soon. Even if it doesn’t, the risks of a potential investment are getting higher and higher by the minute and it’s absolutely vital that you consider them carefully before making your final decision.
