New Western Energy Corp. (OTC:NWTR) Closes Flat Amid VIP Penny Stocks Pumping
On Friday New Western Energy Corp. (OTC:NWTR) hit a bump along its run up the charts and closed the day flat at $1.04 per share. Despite the numerous pumpers who promoted the stock over December and resumed their efforts in early January, the stock stopped its advance.
The NWTR pumps resurfaced as early as the first week of December and went on throughout the month. VIP Penny Stocks, a pumper outfit, picked up where other pumpers stopped and started touting NWTR this weekend. There is little to be excited about with NWTR if you read their filings and see what’s really going on.
The company’s financials are anything but exciting. NWTR had the following numbers to show as of the date of their latest official financial report from Sept. 2012:
- $33 thousand in cash assets
- $283 thousand in current liabilities
- $321 thousand net loss up to Q3 of 2012
In addition to that, NWTR came out with a new filing since we last covered the stock last week. The document in question is an 8-K detailing the acquisition of another 1500 acres of land in Oklahoma. The deal supposedly encompasses a number of oil wells with ‘proven reserves’, none of which is described in scope or volume. NWTR is obviously in no position to pay for this acquisition in cash, so the company issued an additional 400,000 shares to the lessor party, as well as undertook the obligation to issue two promissory notes for a total of $300 thousand.
The shares issued as payment have been duly restricted, which at the very least shelters shareholders from a possible massive dump but it will hardly shelter them from the inevitable dilution. The promissory notes don’t really help the situation.
VIP Penny Stocks have a track record of previous promotions including some woeful missteps. In September they pumped Gunther Grant, Inc. (PINK:GNGR). The stock is currently over 90% down, having burned through the cash of investors who bought the pump and then got dragged down.
Investors are advised to avoid trading on recommendations by promoter parties who often receive monetary compensation for their ‘awareness campaigns’. Promoted stocks may have a shot at a short run and may offer a small profit window to the more adventurous among traders but are generally a risky venture.
