The pump for Bison Petroleum Corp. (OTCMKTS:BISN) Goes Sour
We have been following the stock of Bison Petroleum Corp. (OTCMKTS:BISN) ever since the company burst onto the scene last Monday. After seeing only sporadic trading for the past 3 months suddenly BISN started shifting serious volumes of its stock, at least for their relatively high price per share for a penny stock of above a dollar. On Thursday the daily trade value for the company almost reached $800 thousand dollars.
We warned you that the reason for the sudden activity was a pump campaign with the first email touts sent out by Townhall Spotlight. Later The Stock Junction joined in for a compensation of $6500. Reading their disclaimer though revealed that the promotion had a total budget of $500 thousand paid by Chennai Media LTD for the creation, printing and distribution of the report, hinting that a paper mailer might also be launched into circulation.
Pumps with such large budgets usually run for a prolonged period of time but that might not be the case with BISN because right before the weekend the stock already started to crash. The ticker plummeted right from the start leaving little possibility for investors to mitigate their losses. At closing time BISN had lost around 16% of its value and was trading for $1.39.
This price per share is still highly overpriced and further corrections are to be expected. Without the artificial hype the company can rely only on its fundamentals and they are rather pessimistic. BISN finished the quarter ending July 31 with the following results:
- $30 thousand total assets
- $36 thousand total liabilities
- ZERO revenues
- $339 thousand net loss
Investors should also keep in mind that most of the outstanding shares of company were issued at extremely cheap prices and in July they underwent a 1-for-8 forward stock split. In 2011 millions of shares were sold for just $0.00125 while in 2013 the price was bumped up to $0.0375. In early trading today the stock is going nowhere but down losing another 12%.
On the other hand the $1.1 million pump for Pand Global Corp. (OTCMKTS:PGLO) is heading further up closing in on $0.90. Just be warned that chasing after stocks is always risky especially if they are currently being actively promoted.
