Norstra Energy Corp. (OTCBB:NORX) Keeps Climbing
Yesterday Norstra Energy Corp. (OTCBB:NORX) closed 7% up, marking a fourth green close. The daily share volume was comparable to the previous session and above their monthly average. The move happened on zero new announcements from the company.
We have already covered NORX many times, warning potential hopeful investors for the red flags flying in their face. Those include the convenient combination of a split that increased the number of outstanding shares before active trading of the stock had begun, followed by the selling of large amount of post-split shares to unnamed parties at prices incomparably lower than the current market price. This was all followed by a stock pump for NORX carried out through emails and landing pages on domains registered exclusively for pumping the stock. The landing pages included the usual hilarious pump claims, including a ridiculous target price of $25 per share.
There were no new press announcement coming from NORX yesterday to assist their move up, with the most recent news release concerning the finalization of the surveying stage of the Bakken property they intend to work. The three wells NORX is supposed to drill will bring an estimated expense of $15 million total, $3 per well. The company had $99.5 thousand cash on hand as of its last financial report, and with no announcement of financing, it’s not at all clear how NORX intends to find even the first $3 million needed for the first well. Additionally, the 45 million barrels of oil NORX claims to be located at the drill site are labeled as ‘unproven’ even in the company’s press release.
Other stocks that generated heavy dollar volume in yesterday’s session included the tremendous crash of recent pump Prince Mexico S.A., Inc. (OTCMKTS:LUVE) who dropped 60%, evaporating over $1 million in investor money in the process. Petrosonic Energy, Inc. (OTCMKTS:PSON) continued the drop it started charting near the close of Tuesday’s session and closed 19% down yesterday.
Traders seem unfazed by the first pump crash that sent NORX shares down to $0.64 from a high of $1.56, or about 60% down. The current climb of the share price may continue for a while, as the press announcements from NORX continue but traders should keep in mind this run may cave in just like the climb from late May and early June.