The Pump for Virtus Oil and Gas Crop f/k/a Curry Gold Corp (OTCMKTS:VOIL) May Be Losing Steam
We have been following the paid promotion targeting the stock of Virtus Oil and Gas Corp f/k/a/ Curry Gold Corp (OTCMKTS:VOIL) for quite a few months by now and surprisingly enough it is still going on in full force. Investors to this day are still receiving the hard mailer published by the Moskowitz Report and the landing page is still online. In the past there were also email touts and even unsolicited phone calls were reported.
After so much time though could investors have become accustomed to various methods used by the pumpers? Well, judging by the chart performance of the company it may indeed be so – out of the last six sessions only 1 ended in the green. Yesterday the negative momentum picked up even more speed and VOIL corrected by 7% sitting at $1.44 when the closing bell rang. Although the drop wasn’t that big it took place on over 1.1 million traded shares; this was only the second time VOIL spiked above 1 million shares since the start of November.
Despite the recent losses the stock is still holding on to its pump-induced price ranges. Currently the company has a market cap of over $70 million. In order to see how ridiculous that valuation is let’s take a look at the latest quarterly report. It covers the period ending August 31 and showed the following results:
• $25 596 cash and total current assets!!!
• $82 thousand total current liabilities
• ZERO revenue
• $531 thousand net loss
Believe it or not the current cash reserves represent a massive improvement over the 632 dollars that the company had at the end of May. With such atrocious financials VOIL has been continually relying on the issuance of common shares.
The company has been selling mullions of shares to a Marshal Island entity called Fieldstone Industries, Inc. with the majority of them priced around 40 cents per share. But there are other people that stand to gain millions in profits from the increased awareness created by the pump – insiders own more than 18 million shares for which they paid just $13 thousand. As we said the pump is still going on so these people might still have more shares to sell at the current market price.
Even if you disregard the paid pump entirely VOIL’s business plan is still surrounded by red flags. The quarterly report revealed that they have postponed the spudding of their test well from February 3, 2015 to September 1, 2015. Maybe these extra months will help the company acquire the $2.5 million that it thinks will be need for the completion of the project. Not to mention that the company from which VOIL bought its current oil leases was forced to declare Chapter 11 bankruptcy.
Despite the myriad of red flags VOIL might be able to hang onto its current prices for a while longer. If the pump stops working though the company may plunge for the bottom of the chart.
