VIP Penny Stocks Call New Western Energy Corp. (OTC:NWTR) Flop a “Healthy Pullback”
After enjoying a couple of weeks of running up the charts, New Western Energy Corp. (OTC:NWTR) dropped a good 15% or $0.16 down in yesterday’s trading. Pumpers were unfazed by the slip and sent another round of emails touting the stock.
After NWTR was pumped throughout December to reach nearly $1.10, it went flat on Friday, then dropped in a spectacular manner yesterday. Pumpers VIP Penny Stocks who touted NWTR obviously have bigger plans for the company and did not shrink from touting it again, promising long-term profit even as the price was sliding down.
The new pump email somehow manages to twist the drop and present it as a ‘healthy pullback’. It’s hard to imagine how a significant drop in the price of an artificially inflated pumped stock can be a healthy pullback instead of simply the beginning of a downward slide.
The newest pump also underlines the acquisition of about 1500 acres of land in Oklahoma, supposedly containing over 100 oil wells. The 8-K for this acquisition makes for interesting reading and contains several things the press releases and the pump fail to mention. The acquisition was not paid for in cash as NWTR has a total of $33 thousand in cash. The company paid for the land by issuing 400,000 shares of common stock and undertaking the obligation to issue two convertible notes for another $300 thousand. This is considering the filing concerning the acquisition never mentions what the wells hold or are even expected to hold.
The company has little to show in its latest official financial report as well. The following numbers can be found in their latest quarterly report for Q3 of 2012, which is also their most current one:
- $33 thousand in cash assets
- $283 thousand in current liabilities
- $321 thousand net loss up to Q3 of 2012
VIP Penny Stocks ran other promotions that turned sour for subscribers in the past. One such example is their pump of NSU Resources, Inc. (PINK:NOST) that ended up crashing before traders could so much as sneeze and is currently trading at $0.002, down over 90% from the pump high of about 15 cents per share.
Traders are advised to do their due diligence on any stock they plan to invest in and be very careful around any company that is being targeted by a promotional pump. Those stocks move largely on hype and artificially inflated interest instead of actual performance and solid financials.
