PetroTerra Corp. (OTCMKTS:PTRA) Is Trying To Stabilize
At the start of the month the stock of PetroTerra Corp. (OTCMKTS:PTRA) was sitting at $0.33 per share on almost non-existent trade volume. Just two weeks later, however, the ticker found itself hitting a high of $1.63 with more than 1.8 million shares changing hands in a single day. What could possibly explain the drastic increase in both the trade activity and the share price?
Well, you don’t have to dig deep to find the answer -a paid pump was launched for PTRA. The outfit Wall Street Report created a landing page touting the stock of the company while also sending out several alert emails. Although the whole budget for the promotion hasn’t been revealed the disclaimers at the bottom the landing page and the emails state that Wall Street Report is managing a weekly budget of $150 thousand provided by Mass Peak Ltd.
So, was the choice to believe the words of the Wall Street Report and Mr. Chris Porter who gave PTRA a near term price target of $4.73 per share the right one? Those investors who timed their trades just right may have indeed walked away with sizable gains but the others that decided to wait for a bit longer have not been that lucky – PTRA crashed hard wiping huge chunks of its recent gains. For the past couple of sessions the stock is trying to stabilize and after moving 2% higher last Friday PTRA are trading at $0.92 per share at the moment.
The current price ranges remain ridiculously unrealistic though. A single glance at the latest financial report filed by PetroTerra is enough to make that quite obvious – as of June 30 the company had:
• $2,322 cash and total current assets!!!
• $129 thousand total current liabilities
• ZERO revenues
• $93 thousand net loss
The balance sheet is nothing short of atrocious while at the moment the company commands a market cap of more than $24 million.
In a PR from October 16 PTRA‘s management team acknowledged the ongoing pump and stated that they have nothing to do it encouraging investors to rely solely on the company’s official PRs and filings when doing their due diligence.
Or, you might want to put your trust in the $4.73 price target that was issued by a entity receiving $150 thousand per month and by a fictitious character – “The name Chris Porter is a pseudonym for the writer who was paid $5000 for his/her contributions to the report”. Ultimately it is up to you to decide.
