After registering decline of more than 50% on the chart, the stock price of Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) attempted a pullback and gained more than 14% to close at $1.41 in Friday’s trading session. The pullback came on the back of a new paid email that stated as the sharp decline of 55% as a minor technical pullback. After the recent decline, the market cap of Black Stallion stands at $61.86 million.
The details
The paid email’s disclaimer stated that the outfit has received compensation of $100,000 for touting Black Stallion’s stock. It should serve as a warning as it would be the promoters who would be at the receiving side after the pump ends. The company reported its financial report for the quarter ending June 2015 recently. The cash reserve came at $239 while total tangible assets stood at $4,000.
In the report, Black Stallion highlighted that the company have generated $0 since inception. The net loss came at $34,000 in the three-months period ended June 2015. Investors should think on their own whether a firm that doesn’t have adequate cash can materialize the promising land exploration plans. After all it needs funds to turn the concepts into reality.
The problem
Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) reported in the quarterly report that it has not recorded profitable operations so far. It suggests that the company have to seek financing to complete its development plans. The investors who still believe that Black Stallion pullback is not an aftermath of a pump job should note the various paid emails sent by Wall Street Report.
Also, there is a landing page that outfit Wall Street Report has set up on its website. It is promoting Black Stallion stock and ludicrous stock price targets of more than $40. The paid emails revealed compensation of $50,000 while the landing page stated compensation of $100,000 to tout company’s stock.
