Pump for Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) Crashes and Burns

It was a beautiful story to sell to less experienced traders but it seems it has come to its end now. Yesterday Black Stallion Oil and Gas Inc. (OTCMKTS:BLKG) – one of the more expensive pump jobs of recent months – crashed 26% and stopped at $1.50 per share. The stock is down 37% from its recent pumped 52-week high at $2.39 per share.

After months of virtually zero trading, BLKG started shifting consistent daily volumes in late June. The increase in investor interest was nicely compounded by a paid pump run by outfit Wall Street Report who bagged $50,000 for their efforts. The money was paid by third party Pansino Investment Ltd.

The email pumps were backed by an even more expensive landing page set up on Wall Street Report’s website, which disclosed $100,000 in compensation in its disclaimer. The materials published on the landing page consist of the usual baseless pumper blabber, giving BLKG a price target of $45 per share, promising a “triple-digit winner” and the typical promoter nonsense about how the government has been keeping potentially lucrative secrets from the public and the pumper is going to reveal those secrets to traders, for free.

We have previously explored a lot of what is very wrong with this promoter perspective on BLKG, but it can’t hurt to go through the checklist once again. For starters, here is what BLKG last reported in its Q1 report:

• $799 in cash (seven hundred and ninety-nine US dollars)
• $4 thousand in total current company assets
• ZERO revenues since inception
• $24 thousand in quarterly net loss

Those abysmal figures are underpinned by the fact that back in 2012 BLKG managed to issue 19.8 million split-adjusted shares to “46 stockholders”, at $0.0025 per share. With the stock peeling off from its zero-volume days and making waves thanks to the pump, it is not too hard to imagine those stockholders offloading their incredibly cheap shares into the open market.

A filing put up on Monday informs BLKG issued another 1.1 million shares to a “non-US person”.

With BLKG crashing the way it is, the pumper promises of dozens of dollars per share and triple-digit winner picks seem even more hilarious. Whether the promotion has any fight left in it or BLKG will return back to its price levels before the pump remains to be seen.