PetroTerra Corp. (OTCMKTS:PTRA) Inches Higher
On October 15 the stock of PetroTerra Corp (OTCMKTS:PTRA) reached a high of $1.63 per share. Such highs proved to be unsustainable and following a rapid decline the ticker closed at $0.841 on October 21. Now the company is trying to recover its losses and for the past three sessions it has been inching towards the $1 mark. Will it be able to pass it once more though?
In the world of pennystocks almost anything is possible especially when there is an active pump for the stock. This is exactly the case with PTRA. Two weeks ago the Wall Street Report began touting the stock of the company. The campaign included the creation of a landing page and the distribution of email alerts. In them the pumper gave PTRA a near term price target of $4.73 per share. Is this valuation even remotely realistic?
Opening the latest financial report filed by PTRA you will see that the company finished the second quarter of the year with:
• $2,322 cash and total current assets!!!
• $129 thousand total current liabilities
• ZERO revenues
• $93 thousand net loss
Even at the current price of the stock PTRA commands a ridiculously over-inflated market cap of $25.8 million.
The dire financial state of the company and the ongoing pump turn PTRA into an extremely risky choice. After all prior to the start of the promotion the company was extremely illiquid closing multiple sessions with absolutely no traded shares. If you miss the right time to shed your holdings the losses could be devastating.
In early trading today PTRA is sitting 1.04% higher at $0.97.
