The Stock of Par Petroleum Corp. (OTCBB:PARR) Remains Indifferent To Massive Buying
Last Friday the stock of Par Petroleum Corp. (OTCBB:PARR) attracted unprecedented attention from the market. The company that has an average traded volume of 65 thousand and on June 17 traded the meager 200 shares suddenly saw nearly 6 million of its shares changing hands. The extraordinary number didn’t result in elevation of the price level though. On the contrary the stock slid 1 cent downwards to close $1.63.
The NASDAQ-delisted company has had its fair share of problems. Back in 2011 the company was called Delta Petroleum Corporation and was forced to declare bankruptcy. Since then they have been able to largely stabilize their financial situation. Under new name and moving forward with the reorganization and restructuring PARR posted some impressive results for the first quarter of 2013:
- $14.6 million cash
- $65 million total current assets
- $61 million total current liabilities
- $64 million revenues
- $4.8 million net loss
Most of the revenues come from PARR‘s oil transportation, distribution and marketing activities through their subsidiary – Texadian Energy, Inc. Some financial troubles are still plaguing the company. Last month a pipeline transportation contract accounting for 2.1 million in revenues expired. Additionally PARR have 53 claims for approximately $53.9 million that remain to be resolved as part of their bankruptcy.
What really got investors excited was the news that went public two weeks ago – PARR had signed a definitive agreement for the purchase of Tesoro Hawaii, LLC. Accoding to the terms of the deal the company will have to pay $75 million in cash and issue stock amounting to another $200 million. The real effects of the deal won’t be seen until the next financial report has been filed. PARR also successfully amended its Delayed Draw Term Loan and now has access to funds in the aggregate amount of $65 million.
With the recent developments some minor newsletters have began touting the company but their effect on the stock should be negligible. Still investors should be cautions if some of the bigger pumpers decide to join in because just last week we had a number of disastrous pump attempts. The stock of African Copper Corp. (OTCBB:ACCS) is still bleeding and has fallen under the 1 cent mark, currently sitting at $0.009. As a stark contrast ImageWare Systems, Inc. (OTCMKTS:IWSY) are climbing higher and higher reaching some disproportionate price levels, receiving no support from paid promoters.
