The Promotion for New Western Energy Corp(OTCMKTS:NWTR) Yields Minimal Results
Yesterday’s session was a turbulent one for the stock of New Western Energy Corp. (OTCMKTS:NWTR). Right from the start it spiked, and dropped, spiked again and dropped again, went as high as $0.30 and dropped as low as $0.20 and at closing time it settled somewhere in between at $0.24. Despite the small gain in value of 4.35% traded volume exploded with more than 800 thousand shares compared to the meager 46 thousand from the previous day.
The increased activity around the stock was due to the freshly started pump campaign. One of the major contributors were TooNiceStocks who agreed to participate for the sum of $25000. The other – Damn Good Penny Picks operating through its affiliates PennyStockNewsletters, DamnGoodPennyPicks and PrepumpStocks bagged the larger sum of $35000. This is the second paid promotion for NWTR the first one dating back to mid-December and continuing to February. The ticker has lost more than 70% of its values since the height of the promotion.
And looking at the financials of the company it becomes quite clear that they could have never supported such levels of dollar per share. Their newest report is a 10-Q form for the period ending March 31:
- $792 thousand cash
- $874 thousand total current assets
- $520 thousand total current liabilities
- $19 thousand revenue
- $180 thousand net loss
NWTR is getting closer and closer to the maximum amount of 100 million authorized shares with 68.9 million issued at the end of the period.
The company is currently engaged in the drilling of the first of a 3 well exploration and development program in their B&W Ranch Lease located in Chautauqua County, Kansas which may or may not be profitable. On the other hand their wholly-owned subsidiary New Western Gas Corporation has just completed the acquisition of a property with 9 producing gas wells. So if NWTR will manage a positive balance sheet remains a mystery until the next financial report.
A good example of the risks involved in pump plays was one of the earlier picks of DamnGoodPennyPicks. On April 19 they tried to revive the stock of Premier Brands, Inc. (OTCMKTS:BRND). The ticker bombed by more than 40% on the first day but that didn’t stop the newsletter from getting $35 000.
It is best to avoid playing stocks undergoing active paid promotions unless you are confident in you trading prowess and are prepared to bear the possible losses.
