PetroTerra Corp. (OTCMKTS:PTRA) Fizzles Out Completely
It’s been a while since the second pump for PetroTerra Corp. (OTCMKTS:PTRA) started. As you probably know, a total of $150 thousand was set aside which means that Wall Street Report, the promotional outfit tasked with carrying out the pump, had enough cash to use both emails and a landing page in an attempt to convince anyone who was listening that PTRA could reach a near target of $4.73 per share. There were plenty of things to suggest that these sort of valuations simply aren’t realistic.
The previous promotion from March, for example, should have served as a good enough hint. In case you don’t know, PTRA was pumped by a different landing page seven months ago and although the hype did bring a little bit of volume and one or two spikes, the overall results were pretty terrible.
The latest 10-Q isn’t that convincing, either. In fact, it paints a rather grim picture:
- current assets: $2,322 in cash
- current liabilities: $129,088
- NO revenue
- quarterly net loss: $93,803
Considering the appalling figures you see above, it’s probably not too much of a surprise that even PTRA‘s own management team told you not to put too much trust in what the promoters say. They put out a press release last week, saying that they are not in any way connected to the ongoing promotion and that instead of relying on emails and landing pages, you should base your investment decision solely on your own due diligence. So, let’s do the said due diligence and see if we will find some more spicy details from the company’s history.
The truth is, researching PTRA is not the easiest thing in the world. The company has gone through a change in the name, the business plan and the management team, and it has also undergone not one, not two, but three stock splits, the latest of which occurred in July. If you are persistent enough, however, you’ll find out that between December 10, 2008 and March 19, 2009, the company (then known as Loran Connection) sold a grand total of 1,890,000 shares at a price of $0.01 apiece.
The lucky individuals who got to take part in this private placement are listed on Page 12 of this S-1 registration form and, of course, we have no way of knowing whether they are still holding on to their shares. If they are, however, they have a rather massive profit opportunity on their hands.
Thanks to all the splits and the name changes, the 1,890,000 Loran Connection shares sold several years ago were turned into 12,096,000 PetroTerra shares. Curiously enough, on July 20, mere days after the latest split, the float was sitting at 12,096,028 shares.
We don’t know whether that has anything to do with it, but PTRA‘s fall has been quite steep over the last few sessions. The pump peak was reached on October 14 when the stock briefly touched $1.48 per share, but since then, it has taken a few massive hits which means that yesterday, after losing about 7%, it closed the session at a hair over $0.84. It’s experiencing a small resurgence in early trading today, but at just 2%, the bounce is not that substantial. The risks, however, are.
