Stratex Oil and Gas Holdings, Inc. (OTCMKTS:STTX) Recovers Lost Ground
A rising tide lifts all boats, and since the talk of the Bakken geological resource in North America, many penny stocks burst in activity, promising to deliver gains on the new oil bonanza. This mass hype helped Stratex Oil and Gas Holdings, Inc. (OTCMKTS:STTX) to rise even without a recorded promotion, but on a very active press release campaign. 
STTX burst forward at the end of April, gaining to nearly $1.70 and then drifting mostly sideways. On Tuesday, STTX went up on more lively buying volumes, reaching $1.29 on a gain of 5.74%. Braver buying resumed after the stock drifted for a few days at $1.10 and did not dig down to lower levels. 
Penny stocks attempting oil and gas fracking in the Bakken formation show various resources, some well-heeled, some just using the business model for hype. STTX shows the following ability to provide real drilling:
- $460,617 cash
- $3.7 million total assets
- $2 million current liabilities
- $266,778 revenues
- $561,407 net loss for the March 31 quarter
While STTX is losing, it is still in a position to continue operations. It seems seriously involved in drilling, attracting investors on it’s own merit. According to recent news, revenues in the last quarter were 21% higher than the same period of last year.
At $1.29, the ticker promises less volatility, and the lack of a promotion means avoiding disproportionate movements. Currently in more active promotion is MultiCorp, Inc. (OTCMKTS:MULI), another oil and gas contender that recently burst forward from a few cents to $1.16. The company also relies on drilling news releases to further boost interest. MULI was mentioned again on June 11th, for an ongoing campaign propping up prices in the past weeks.
While many penny stock companies manage to run a lucrative well or buy and sell plots, it is best to stay away from suddenly active tickers unless you are also prepared to absorb losses. The fracking hype is creating conditions for many small cap companies to gain fame, or even become newcomers to the game, so while the sector is a promising business, the ride may be uneven and cost you a large part of your investment.
