Pump for Eagle Oil Holding Company, Inc. (OTCMKTS:EGOH) Does a Face Plant
After a spectacular volume spike coming in the wake of multiple zero-volume days, Eagle Oil Holding Company Inc (OTCMKTS:EGOH) tripped and fell from its precarious perch at $0.0001 per share, losing another 50% by the closing bell and stopping midway into quadruple zeroes. Close to 1 billion EGOH shares changed hands as the stock slid down.
The reason for EGOH‘s movement is, predictably, a paid stock pump. Obviously paying party Red Tie Financial Inc decided the zero-volume days EGOH was logging were no good and paid a large number of stock promoters varying amounts of money to tout the company’s stock. Compensations disclosed by the pumpers range between $2 thousand and $15 thousand. The first pump emails started coming after hours on Oct 6, with a couple on the next day.
The pump fell through miserably, with EGOH never going over its opening price, but dipping to an intra-day low of $0.00001 (that is four zeroes after the decimal) and ultimately closing a painful 50% in the red. Obviously all the volume in the world can’t do anything to move EGOH up when 999,033,005 shares traded pushed it so far down.
The previous time the company was traded in heavy volume was back in mid-July. Not too surprisingly, back then the volume was caused by another pump job, once again paid for by third party Red Tie Financial Inc. Back in July EGOH managed the impressive feat of shifting over 2.5 billion shares in a single session. On the day that this happened, as well as on the next 15 trading days, EGOH closed flat, but at least nobody lost an awful lot of money in the previous pump.
EGOH‘s balance sheet can be found in the company’s latest quarterly, for those still interested in its contents. The report is full of typical pink sheet sloppiness, with the period covered ending in July 2015, but with outstanding shares reported as of April 30 – a typographical error maybe, but still an unpleasant one. Even if we assume the 8.39 billion OS reported were as of April 30, the extra 4.34 billion shares issued between early May and late June are enough for the company to go over its authorized cap of 10,000,000,000.
How many new shares were issued between June 23 and today is a mystery.
