PetroTech Oil and Gas, Inc. (OTCMKTS:PTOG) Skyrockets
PetroTech Oil and Gas, Inc. (OTCMKTS:PTOG) is yet another company that has decided to branch out into the medical marijuana industry and we are not really amazed anymore, because at this time there are at least 1-2 similar announcements coming from all sorts of businesses.
Yesterday, they announced that their subsiduary LegalizedPot.US Management Group, Inc. will start producing hemp in Washington and Colorado for all sorts of uses. Apart from medical marijuana they also plan on utilizing the hemp plant for oil and fiber.
They will not be abandoning their oil and gas leases that have allegedly started production since the beginning of the year, which means that they might finally be able to finance their operations. The worries came from their latest financial report, covering the period ended September 30, 2013, which looked rather grim.
- cash: $36
- total assets: $319 thousand
- total current liabilities: $1.5 million
- revenues: $5 thousand
- net loss: $667 thousand
Looking at these financials, the market cap that PTOG has of $1 million, however small it may seem, looks a bit overpriced. Furthermore, it is not a surprise that they have decided to step in the medical marijuana industry as they have changed their ticker symbol and business direction at least 5 times since 2007, dealing in stuff from beverages and laboratories to auto parts, which all failed.
That, however, didn’t stop PTOG from doing a massive 234% jump yesterday, closing at $0.0164 on the biggest volume in its trading history. At the end of the day there were more than 167.4 million traded shares that generated some $2.9 million in dollar volume. And just so this was ensured there was also a paid promotion worth $9 thousand.
Still, PTOG remains a very risky stock of a company in a dire financial state, with a history of failures. This is the exact reason for which we would advise you to do your due diligence and weigh out the risks if you are having any thoughts of making a play with their stock.
In the meantime, tickers in the mmj industry like Medical Marijuana, Inc. (OTCMKTS:MJNA), Cannabis Science, Inc. (OTCMKTS:CBIS) and Growlife, Inc. (OTCBB:PHOT) have began sinking at a slow rate.
