Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) Can’t Keep to Gains Despite Promotion, PR

Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) will have to mull over the long weekend weighed down by Friday’s setback. TGRO was starting to make a cheerful little upward trend when it bucked on Friday, losing more than 13% to stand at $0.601, on selling volumes above $762,000. The ticker was promoted at the beginning of January, and the whole campaign cost a whooping $2.6 million. This caused an almost 500% growth at the start of the campaign, but the ticker went on to lose more than 50% since then.

Now, the latest upward move looks more like a dead cat bounce as emails come in less often. The latest promotional email is from January 17th, and it may give some boost as the markets reopen, especially if the lower price is seen as a buying opportunity.

In addition, TGRO came with a fresh PR message touting $600K in attracted financing, but unfotunately the financing would be in the form of a convertible note that could cause dilution. The note converts at 50 cents, so any price above that threatens with insider selling once the debt matures.

But all of those events may happen way beyond the horizon of the short-term volatility, and TGRO certainly has to offer a lot of volatility. Investors’ forums show awareness of this, considering TGRO little more than a short-term bet. So far, none of the company’s drilling promises has come true, though the PR is quite effective when it comes to causing short-term spikes based on new naïve investors.

Oil and energy companies surfaced in the past week as marijuana stocks became more subdued. Sadly, the end of the promotions also meant a deep correction for most tickers.

First Titan Corp. (OTCBB:FTTN) started off respectably, but is now losing some steam, gaining less and less each day toward the 80-cent levels. At the peak of the promotion, FTTN reached $1.80 and investors were confident the ticker could go way above the two-dollar mark, even to $2.50, but the drop came fast and unexpected.

Formcap Corp. (OTCMKTS:FRMC) had a similar run and touched the two-dollar mark, only to fall nearly 75%. The company also promised drilling would happen any time now- just like it promised in seasons past, as it tried to boost its OTC trading positions.

Oil and gas companies are often falling in the hands of pumpers, but not even 35 emails in January could ensure a sustainable growth for TGRO. Keep this in mind if you like the sector, and avoid investing if a trend looks too good to be true- usually the party is over sooner rather than later.