Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) Takes a Hit Right After Christmas
The pump for Tiger Energy and Oil, Inc. (OTCMKTS:TGRO) had two extremely positive sessions right before Christmas. The stock rose by 34% and 17%, respectively, soared past the 1 dollar mark and closed at $1.43. When trading resumed after the holiday things seemed rather calm with TGRO managing to reach a new 52-week high of $1.59 in early trading.
Then just minutes after 11 o’clock the stock took a sudden plunge towards the bottom and quickly fell to just 70 cents per share. Still thanks to the artificial hype created by the pumpers and the momentum that had already built behind it TGRO managed to recover rapidly and return to price ranges above $1.20. When the closing bell rang the stock was sitting at $1.21 or 15% lower than the previous close. The traded volume of 12.3 million shares was just a few thousand shares short of being a new absolute record for the company.
The pump newsletter StockTips are continuing with their extremely positive email alerts that are released at least once a day and are likely to continue doing so for a while longer judging by their previous pump campaign for the stock of Pan Global Corp. (OTCMKTS:PGLO). Back then they touted the company for nearly a month before the inevitable crash of the pump forced them to move on. Now they are managing a budget of $2.5 million which more than doubles the $1.1 million used for PGLO.On December 24 TGRO filed an 8-K form that revealed more details about their new funding source. Apparently Chancery Lane Investment Group, Inc. is going to provide $600 000 to the company. The money will come in the form of three tranches of $200 000 each covered by a 5% convertible note. The negotiated conversion price of just $0.50 per share is nearly 60% lower than the market price.
Investors should thread carefully when dealing with the stock of TGRO. The current market cap of $61 million is grossly overpriced when compared to the $1727 in total assets seen in the last quarterly report. The management of the company adds its own layer of risks due to their past involvement with pumped companies. In order to avoid any unpleasant surprises during the holiday season be sure to do your own due diligence and never take anything said by the pumpers at face value.
