Tiger Oil and Energy, Inc. (OTCMKTS:TGRO): Absolutely Lost Without Pumpers
At first the deterioration of Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) started off slow, with a few days of almost no change. But Monday came as a day of reckoning, as the ticker corrected in earnest, dropping by more than 42% to 68 cents on dollar volumes above $6 million. The amazing volumes in the past month are the result of no other factor than a series of promotional emails. 
Unfortunately, the last email landed on January 3rd, with little indication that the inflow would continue. The whole campaign for now rounded off 35 emails, worth a total of $2.6 million, so it is no wonder it could lift TGRO from almost no activity to sudden fresh buying. Also, TGRO has scrubbed its PR headlines from its Yahoo profile landing page, at least temporarily. 
Now, at a relatively respectable price, TGRO is almost certainly headed for the unwinding that befalls overhyped oil and energy companies. We’ve seen several similar cases in the past weeks, as usually several penny stocks bid for fame by promising oil drilling results just any minute now.
TGRO may have announced plans to find financing, but its financial report shows little to root for:
- $1,700 cash-like assets and deposits
- $117,442 total current liabilities
- $3.9 million loss since 2009, the inception of exploration
While TGRO is not buried in debt unlike other oil explorers, there is little to indicate that the company holds any longer-term potential.
In the past couple of trading days, Petrotech Oil and Gas, Inc. (OTCMKTS:PTOG) also came into the spotlight with a new brief promotion, but very quickly reversed the buying trend. After a record day of buying and a breakthrough to 1 cent, PTOG returned to $0.007.
Much like PTOG, TGRO sports several changes in tickers and business activity in the past years, the latest one in 2010. While TGRO is not so keen on constantly switching identities, this is still a red flag, as the latest oil exploration has not proven itself to be a serious and viable attempt.
Formcap, Org. (OTCMKTS:FRMC), an older promotion, had a rebound on Monday as it sank by nearly 90%. Now, about 2 million shares were mopped up, propping up the oil company to 21 cents.
In the case of TGRO, the fallout is already intercepted by investors’ forums, with some opinions spelling doom and a rock-bottom price. Yet even the steepest drops may at a certain point offer a minor, or bigger rebounce. Just don’t get too caught with TGRO, unless you can afford the pressures of the serious downside risks that this company shows.
