Petrotech Oil & Gas Inc (OTCMKTS:PTOG) Falters, Pump Continues

Petrotech Oil & Gas Inc (OTCMKTS:PTOG)’s reputation on the OTC Markets isn’t exactly spotless. The company has gone through no less than six incarnations and has been dealing with everything from beverages to auto parts. None of the business plans worked and they decided to switch to the oil and gas industry in March 2013.

In terms of operations, we might just be seeing a light at the end of the tunnel. The revenue generation started during the third quarter of 2013 and since then, they have announced the completion of quite a lot of work on their oil and gas properties which could suggest that the future reports might actually have some significant figures in them.

There is, however, another problem. PTOG has been (and still is) one of the most heavily promoted penny stocks out there. The first batch of emails hit our inbox back in May 2013 and since then, we have received nearly 160 alerts from a range of outfits.

Predictably, they are all very optimistic and at the very beginning, some of the newsletters were even putting incredible price targets on the ticker. Penny Stock General, for example, said back in June that PTOG could be traded at $0.18 per share. Not only did it fail to reach this benchmark, but it slipped hard and fell below the $0.02 mark just a couple of months later. The slide continued and during the first sessions of December, PTOG officially became a sub-penny stock.

Neither the pumpers, nor the management team seem too bothered about that. The coverage from the newsletters has been virtually constant with more and more players jumping in almost every day. Today, for example, we’re seeing some emails from Jet-Life who have apparently received $3 thousand for touting PTOG. They pocketed the same compensation a couple of months ago when they tried to pump Rising India Inc (OTCMKTS:RSII), but, as you can see from the chart on the right, it hasn’t really worked.

At least the pumpers can’t complain about being starved for news coming out of PTOG‘s HQ. As you probably know, the management team recently announced that they are looking into the opportunities presented by the marijuana industry and it’s clear from the chart at the beginning of the article that this has had a dramatic effect on the stock performance.

The ticker surged last week when the new business plan was announced, but it then showed some serious corrections. A second cannabis related PR sent the ticker on another run during Wednesday’s session, but yesterday, it slipped again and lost a fifth of its value while logging a dollar volume of more than $1.3 million.

It would appear that the management team saw the drop and decided to do something about it. About an hour before today’s opening bell, they issued a press release and this time, it’s not related to the new pot business. They told us that they have completed some tests at a well called Brown 29-1 located in Nowata Oklahoma. Apparently, the results are good and production should begin soon.

Predictably, the pumpers are jumping in with some alerts and about forty-five minutes after the opening bell, the results are evident. At the moment, PTOG is standing at $0.0348 which is around 10% above yesterday’s close. If the trend continues, it will probably close the session in the green. It might even break through the $0.04 barrier. But will it be able to sustain the higher prices?

Looking at the past performance, we have some doubts. Extensive research and careful consideration of all the risks is absolutely essential before putting any money on the line.