PostRock Energy Corporation (OTCMKTS:PSTR) Drops Below 50 Cents Per Share

[[tagnumber 0]][[tagnumber 1]]The performance of PostRock Energy Corporation (OTCMKTS:PSTR) in the latest months has declined quite a lot. After two attempts to run up the charts in the beginning of the year we saw [[tagnumber 2]]PSTR[[tagnumber 3]] embark on a prolonged downward run that is constantly leading it to new 52–week lows.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]The company stock rarely receives a lot of investor attention, as it can be seen by the daily volumes. The fundamentals certainly don’t suggest anything different. Here is a quick look at the numbers of prime interest contained in [[tagnumber 2]]PSTR’s[[tagnumber 3]] balance sheet for the second quarter of the year.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 13]] [[tagnumber 14]]cash: $3.05 million[[tagnumber 15]] [[tagnumber 14]]total assets: $139.5 million[[tagnumber 15]] [[tagnumber 14]]total liabilities: $178.16 million[[tagnumber 15]] [[tagnumber 14]]quarterly revenues: $11.17 million[[tagnumber 15]] [[tagnumber 14]]quarterly net loss: $53.31 million[[tagnumber 15]] [[tagnumber 24]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]Those are certainly some impressive numbers for a company listed on the OTC marketplace, but things aren’t going well looking at the overall picture and the de–listing of the company stock from the NASDAQ earlier this month clearly show that. We see that the first half of this year has been disastrous when it comes to revenues, which have fallen by nearly 50% compared to the same period last year.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]The net loss has also greatly increased, while the total assets of the company have steeply declined. We see that in the six months ended June 30 the assets under the oil and natural gas properties, full cost method of accounting, net have dropped by $40 million, while the revenues generated in the same period is only $23.66 million, a thing that suggests that [[tagnumber 2]]PSTR’s[[tagnumber 3]] accounting practices can be a bit misleading.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]Still, the market cap of the company seems low, considering the numbers contained in its reports. That, however, didn’t stop [[tagnumber 2]]PSTR[[tagnumber 3]] from dropping another 20.33% in yesterday’s trading to close the day at $0.49 with a daily dollar volume of a mere $87 thousand.[[tagnumber 4]] [[tagnumber 0]] [[tagnumber 4]] [[tagnumber 0]]That didn’t stop the ticker from gapping down at $0.40 today. Doing your due diligence and weighing out the risks before attempting any trades with [[tagnumber 2]]PSTR[[tagnumber 3]] is crucial.[[tagnumber 4]]