Black Stallion Oil and Gas Inc (OTCMKTS:BLKG)’s Time to Shine Has Come
Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) went up by around 9% during yesterday’s session. This may not seem like much in Pennyland, but when the share price is nearing the $2 mark (it’s currently sitting at $1.89), it is quite respectable. What’s more, in addition to the gains, BLKG also logged a dollar volume of nearly $540 thousand which means that a lot of people are putting their money on the line. The only problem is, those people might not be aware of just how dangerous BLKG is at the moment.
The company has many problems. A little research on the people behind it, for example, puts quite a lot of pressure on its credibility. Its sole Officer and Director is called George Drazenovic and he was once at the helm of a penny stock enterprise called Sun Cal Energy which was traded under the SCEY symbol. SCEY didn’t really have much of a reputation. In fact, while Mr. Drazenovic was at the helm, it fell victim to a promotional campaign and the emails that were hitting investors’ inboxes were, apparently, unsolicited.
Speaking of promotional campaigns, BLKG is also being pumped. There are no spam emails at the moment, but there is a landing page. It was put together by Wall Street Report who, after receiving $50 thousand, suddenly became convinced that BLKG could potentially reach more than $45 per share.
At that price, BLKG‘s market cap would sit at about $1.9 billion which isn’t really in line with what the company has to show in its latest financial statement. Here’s a summary of the figures logged at the end of Q1:
- cash: $799
- total assets: $9,366
- total liabilities: $11,987
- NO revenue since inception
- quarterly net loss: $24,052
The pump, Mr. Drazenovic’s previous business endeavors, and the nightmare of a 10-Q are all things that you should probably consider before you part with your hard-earned cash. If you reckon that these problems aren’t serious enough, you might also want to check out the SEC filings from years gone by. You’ll certainly find some interesting information in there.
A couple of years ago, the company was called Secure It Corp and although its business plan was different, its balance sheet was very similar to what BLKG has to show today. Secure It was headed by Ofir Ben Arzi and Binyamin Brodman who held an aggregate of 2.2 million shares of common stock or about 87% of the total O/S count. In August 2013, however, they decided to give up on Secure It and Mr. Drazenovic was only too happy to take the helm as well as their shares.
He changed the name and business plan, canceled 1.8 million of his newly acquired shares, and effected a 60 for 1 forward split. As you might have calculated already, immediately after it, Mr. Drazenovic had exactly 24 million BLKG shares which he still seems to be holding to this day.
The thing is, the O/S count according to the latest 10-Q sits at exactly 43,872,000 which means that there should be 19,872,000 shares which are not held by Mr. Drazenovic.
These were bought on September 10, 2012 by forty-six unnamed investors for a grand total of $49,680. At yesterday’s close, these shares are worth about $37.6 million.
