The pump for Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) Slides on the Second Day

On Monday Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) was officially announced as the next pick of the pumper StockTips. With the staggering $2.5 million set aside to fund the promotion it was no surprise that TGRO skyrocketed by more than 70% on the first day of touting. Usually such big-budget promotions manage to sustain at least a couple of days of gains but TGRO became quite volatile on the very next day.

Yesterday the ticker opened with a strong momentum and quickly rose above 60 cents per share. In the afternoon though sentiments changed and it rapidly backed down to $0.38 just to recover and at closing time TGRO was only 4% lower than the previous close. The drop might be attributed to some profit taking by investors or the threat of TGRO being added as a defendant in George Sharp’s ongoing lawsuit against promoters.

Whatever the reason was, the stock is still extremely risky on its own. The insiders of the company starting with the CEO Mr. Ken Liebscher are all well known among pennystock investors. In the past they have been involved with a couple of other oil and mineral exploration companies that got aggressively pumped. Just take a look at the chart of Northumberland Resources Inc (OTCMKTS:NHUR) to see what happened when the pump emails stopped coming.

Or take a look at Pan Global Corp. (OTCMKTS:PGLO), StockTips previous pump target. During the duration of the promotion PGLO managed to crash twice in less than twenty days. That however didn’t stop the promoter from getting their $1.1 million compensation. We don’t know if TGRO will have the same fate but the similarities between the two companies continue as the paying party for one pump was Laluna, Inc while for the other is Laluna Services, Inc.

In our previous article we already discussed that TGRO are in a dismal financial state with less than $2000 in total assets. The company wants to participate in one oil well in Kansas but in order to do that they will have to pay $189 thousand, funds that they just don’t have.

Due to the increased activity of the SEC and the record number of suspended companies pumps nowadays tend to progress at much higher speeds so deciding on appropriate time horizons is paramount even if you are an experienced trader.