Norstra Energy, Inc. (OTCMKTS:NORX) Marks Two Days’ Slump
After a strong surge, Norstra Energy, Inc. (OTCMKTS:NORX) is starting to correct, obly a few short days without a reminder from a press release or a promotional email. The ticker, which jumped into visibility on its own, was later taken on by promoters, at least until May 22. On Friday, NORX slid down nearly 15% to $1.14.
Still, NORX is near its peak after a steep climb from 40 cents to above $2. The company entertained investors with regular releases about upcoming drilling in the Bakken formation, a geological stratum of tar sands, also offering natural gas reserves. The company received an estimate of reserves, an educated guess at best of between 9.5 an 16.7 million barrels. It’s unknown if this underground stash will come online and produce revenues soon, but the messages were enough to support the ticker’s drive.
The annual report shows how well NORX is equipped to deal with drilling. The 10-K shows:
- $125,114 total assets
- $114,473 total liabilities
- $99,663 working capital deficit
So far, NORX is not overburdened, but it is still in development, hardly justifying an amazingly high stock price, especially one reached over the course of months. We may expect a deeper correction for NORX, which may come fast or slow, depending on how well press releases work or if another pump materializes.
As a reminder, the pumps for NORX started on April 1st, after the company had already taken off in March. $236,500 were paid for 38 emails, ranging in their separate compensation from $15,000 to $50,000 and more. This is the most worrying piece of news- that all the stock’s moves are more or less disproportionate and unsustainable.
NORX was also carried by a more general trend on the penny stock markets, a surge among companies dealing with fracking and tar sands. These dubious projects gain from an expectation that they would solve some of the energy problems, despite the great potential for pollution and the environmental activists’ opposition.
The latest pumper for NORX is Penny Stock Circle, receiving $35,000 for two emails. This promoter participated in the latest round of promotions for Trulan Resources, Inc. (OTCMKTS:TRLR), causing a doubling of the ticker’s penny price, briefly touching 2 cents before retreating. NORX is at a different price range, but still may offer dramatic climbs, especially if the slump is only temporary. Still, this young oil and gas company is hardly worth losing your whole investment, so stay away if you can’t afford that.