Petron Energy II (OTCBB:PEII) Ran Too High For Its Own Good
More than 730% in just two days – that’s the performance displayed by Petron Energy II (OTCBB:PEII) during the last two sessions of last week. The volume was also pretty impressive but when it comes to penny stocks, such runs often turn out to be a double-edged sword and if you’ve read through our previous articles, you’ll probably notice that we were not sure if PEII‘s ascend will stand the test of time and prove to be consistent enough.
Unfortunately, the ticker slipped yesterday losing 36% of its value during the six and a half hours of trading which means that we’re even more uncertain as to where PEII is going next. The short trading history means that even past performance probably isn’t the best place to search for suggestions considering the future behavior of the ticker, but since we have nothing more to work with, we should point out that this is not the first time that PEII has been in a similar position.
In fact, when active trading began back in June, the ticker made a run (albeit not as impressive as the one from last week) from around $0.01 per share all the way up to more than $0.04. Unfortunately, it didn’t remain there for too long and within less than a month it was back in double-zero territory. Does that mean that the 700%+ run from last week will be wiped out in a hurry once again?
The performance during the next few sessions will give us a definitive answer to that question, but a way to stop that from happening is by issuing some news and, as we mentioned yesterday, there are rumors around the message boards that some new and exciting figures are about to hit the websites this week.
We checked the forums today and there is one poster who claims that he talked to a person called Gill Steedley who assured him that production results are about to be released really soon. That apparently caused some confusion among other forumers and, truth be told, it got us a bit perplexed as well.
Mr. Steedley is not featured on PEII‘s website and his name is absent from the company profile on the OTC Markets as well as the official filings. In fact, the only thing that connects him to PEII is a line under each and every press release from the last couple of months stating that he is the man to contact in case you have any questions.
A bit more research reveals that a person by the same name also acts as the CEO of another mineral exploration penny stock venture called Strategic Mng Corp. (OTCMKTS:SMNG). We’ve covered SMNG a fair few times and if you check out our articles on them, you’ll see that we aren’t ready to consider them the best place for your money. Apparently, the SEC tend to agree with us since we see that SMNG‘s shares have received a temporary suspension order not once, but twice. The second ban was due to questions regarding the accuracy of the information that they provided in their press releases as well as in their filings and the result of all this is that SMNG is currently traded on the Grey Market tier.
Before you panic and sell all your positions at PEII (which will probably depress the price further) because of Mr. Steedley’s possible affiliations with SMNG, we should point out that he took the helm there after the suspension order was dropped, which means that he wasn’t around when the SEC were questioning the credibility of the statements.
Still, putting his name and email as the contact coordinates for PEII and not disclosing what his position in the company is, certainly raises some eyebrows. In the meantime, some people believe that PEII will run to new heights while others are convinced that crashes such as the one seen yesterday are not a coincidence. Whatever happens, PEII‘s stock performance is anything but consistent which is why, although the news looks good, a potential investment still hides its risks and considering them carefully might just save you a lot of sleepless nights.
