Virtus Oil and Gas Corp f/k/a Curry Gold Corp. (OTCBB:VOIL) Bounces After the Crash
Ten minutes before the end of yesterday’s short session, they announced that they are aware of the paid pump currently running for VOIL. They mentioned that the promotional materials contain “a number of subjective conclusions and value assessments“, but for reasons that are not very well explained, they refused to comment on them. The press release did say, however, that shareholders and potential investors should open the company’s SEC filings and look for information there. Naturally enough, that’s exactly what we did.
From the reports, we found out that the current CEO, Rupert Ireland, owns 28 million shares of common stock (57% of the total O/S count). He recently acquired them for $2 million which brings the price per share down to just $0.07.
Yesterday, VOIL bounced and gained 11.7% which means that it will spend the July 4 weekend at $1.05 per share. And that means that Mr. Ireland has a great opportunity to sell some of his holdings and make some quick and easy money. Will he do it, though?
In yesterday’s press release, he explained once again what his company’s business plan is and said that he is mightily optimistic about it. He never mentioned his position in the stock, but he certainly doesn’t sound like a person who is willing to get rid of a large amount of shares right now. In any case, if he decides to sell his holdings, he’ll need to file Form 4’s with the SEC. Really soon, we should find out if Mr. Ireland is truly loyal to his company or not. And that brings us on to an interesting question: “Who owns the rest of VOIL‘s outstanding shares?“.
The answer can also be found in the filings. There was a 14-for-1 forwards split back in August 2013. About a month before it became effective, an entity called Fieldstone Industries Inc. (which, by the way, appears to have absolutely no internet presence outside VOIL‘s filings) received 150,000 common shares for just $50 thousand ($0.33 per share). Immediately after the split, they held 2,100,000 share each of which cost them just over $0.02.
If you rewind the tape further back, you’ll see that in October 2009, twenty-two investors acquired 1,300,000 shares at just $0.01 a piece. Immediately after the split, they too held a significant position in VOIL – 18,200,000 shares costing just $13,000 ($0.0007 per share).
Here’s a couple of questions to ponder while considering the risks of a potential investment: Are these people still holding on to their positions? And if they are, will they be keeping their discounted shares close to their chest, or will they unleash them on the open market and make some quick profits?
You need to weigh the odds for yourself. Be sure, however, to do it before reaching your final decision.
VOIL wasn’t the only pumped stock to bounce during yesterday’s session. After wiping out nearly 60% of its value in no more than three days, Windstream Technolog (OTCBB:WSTI) finally managed to reverse the trend and jumped up by an impressive 31%. VoIP-Pal.com Inc (OTCMKTS:VPLM), on the other hand, managed to erase nearly a quarter of its market cap in no just three and a half hours.
