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

It’s been an epic journey, the pump for North American Oil & Gas Corp (OTCBB:NAMG). The first promotional email hit our inbox on July 14 and since then, the ticker has been the subject of virtually constant touting.

Every single weapon in the pumpers’ arsenal has been used – around ninety emails, a few landing pages, and hard mailer brochures have drawn traders’ attention for more than four months now and the volumes from the chart show that the efforts have been, to some extent, successful. Unfortunately, the same thing can’t be said about the stock performance. Some of the people who timed their exits well were indeed presented with the chance of securing some reasonable profits but for most, the slides were just too sudden and violent.

Still, because of the constant touting, NAMG continues to be actively traded which, in turn, means that some of the badly burned investors are able to return at least a part of the losses. As you can see from the chart, there have been several peaks followed by some massive drops and the fact that last week, the share price fell to a low of $0.69, means it should be moving back up again. And it is.

The last four sessions all ended in the green and it would appear that NAMG is now looking at the $1 per share mark once again. The latest email to hit our inbox was sent by Super St0ck Plays shortly before the start of Tuesday’s session but we won’t be at all surprised if the pumpers let out some more alerts, just to be sure that the message is properly spread around.

They certainly have the money to do it. As we mentioned in some of our previous articles, finding out the exact budget for the promotion is rather difficult. Figures in different disclaimers range from less than $100 thousand to more than $2 million but whatever the total budget, the pump is quite expensive.

That doesn’t mean that the ticker will manage to go on a more prolonged run in the right direction, though. In fact the positive results of the last four sessions lead us to believe that a correction is all but inevitable.

Still, the pumpers will, sooner or later, move on to their next pick. Some of you are probably wondering what will happen to NAMG once they do.

Unfortunately, we can’t say that we’re particularly optimistic about the future. The company’s situation was pretty poor when the pump started back in the summer and right now, it’s even worse. Here’s a summary of the most important figures as found in the latest 10-Q:

• cash: $5,440
• current assets: $27 thousand
• current liabilities: $625 thousand
• no revenue since inception
• quarterly net loss: $170 thousand

NAMG did manage to raise around $200 thousand recently when they sold some equity to an entity called Oel und Erdgazforshung AG, but even with those proceeds taken into account, the market cap, which at yesterday’s close is estimated to be around $56 million, seems ridiculous. More worryingly, when you compare the latest 10-Q to the preceding reports, you’ll see that the company’s financial position is deteriorating by the minute and the lack of new press releases over the last couple of months means that there’s very little you can hang on to while making your investment decision.

Another old pump that also registered an eventful session yesterday is Alkaline Water Company Inc (OTCBB:WTER). The ticker seems to be aiming for a break above the $0.40 per share mark but it’s still uncertain if it will be able to do it. Pan Global Corp (OTCMKTS:PGLO), on the other hand is a relatively new promotion, but it’s clear that it’s not doing too well. After registering yet another red session yesterday, it’s sitting at $0.33 which is around 60% below the pump heights.