The Pump for Gray Fox Petroleum Corp. (OTCBB:GFOX) Suffers Another Crash

After wiping nearly a fifth of its value on Tuesday the stock of Gray Fox Petroleum Corp. (OTCBB:GFOX) was unable to recover during yesterday’s trading and only plunged further down. GFOX slashed a bit more of 17% from its share price and closed the session at $1.50. This time the drop occurred right after the opening bell and traded volume was less than half of the 2.5 million shares that got dumped on the market the previous session.

Last Friday Investor Planet sent an email alert that contained the same report created by Tobin Smith. This time though its disclaimer revealed that the promotional budget had reached more than half a million dollars. This morning just as the opening bell rang another tout was distributed among investors. The pumper was InvestorsSoup, an affiliate of Sherwood Ventures. As is to be expected the service was not done for free and a compensation of $20 thousand was paid by Think Ink Marketing. GFOX has not been actively publishing PR articles. The latest one was an 8-K filed on January 29 regarding the employment of Gaffney, Cline & Associates, an oil and gas consulting firm.

In early trading today GFOX are trying to recover at least some of its losses by climbing 16% up and trading for $1.74. Even if the stock manages to bounce it won’t change the fact that such share prices are grossly disconnected from the fundamentals of the company. As we have said in our previous articles GFOX finished the latest quarter with less than $30 thousand in cash and a net loss of $526 thousand. Currently the company has a market cap of more than $53 million when their total assets amount to $41 thousand.

At such inflated price levels GFOX is not among the most accessible investment choices. Even without the continued involvement of the paid pumpers the company has enough red flags on its own. Be sure to weigh in all the risks and decide on appropriate time horizons before making any trades with the stock.

This week the market is still dominated by the hype around the marijuana industry. After closing nearly 10% in the red yesterday the stock of Cannabis Science, Inc. (OTCMKTS:CBIS) is having a hesitant start of the day currently 4% up at $0.185. The industry leader Medical Marijuana Inc. (OTCMKTS:MJNA) is making a similar performance trading for $0.358, just 5% above its previous close.