North American Oil & Gas Corp (OTCBB:NAMG) On An Unstoppable Winning Spree

If we were to delete the name from the chart on the right and let you have a guess which company it belongs to, you would probably say that the venture whose stock is moving so consistently in the green direction has issued a new and exciting press release. Or maybe you would guess that the enterprise in question has published the next 10-Q and it’s full of great financials. You might also suggest that the company whose shares jumped from $0.70 all the way to $1.58 in less than two weeks has been approached by a major corporation and negotiations of a buyout are in progress. Whatever your guess is, you’ll probably think that the enterprise whose ticker moves in such a hurry towards the sky has some pretty bright future in store for it. You should be happy that we didn’t let you play that game, because you would never have guessed that the chart actually represents the stock movement of North American Oil & Gas Corp (OTCBB:NAMG).

That’s correct. Eleven days, nine green sessions, 126% in potential profits and many happy traders. You might even think that jumping in now, in case you missed the train earlier, is the most logical thing in the world. Before you get too excited, however, there are a couple of things to be considered.

First, a quick history lesson. NAMG‘s chart, as it is now, is starting to look suspiciously familiar to the one for Biozoom Inc (OTCMKTS:BIZM) from the second half of May and the first two weeks of June. You can see that BIZM started at $1 per share and in record time it reached $4, which just like the one displayed from NAMG is an astonishing run. Then, however, there were some corrections and at one point, trading stopped. Who stopped it? It was the SEC. Why did they suspend it? Well, that’s a more complicated question. The official documents say that the cause was an unlawful distribution of securities and a violation of Rule 144. It is rumored, however, that BIZM‘s stock was suspended temporarily because of the huge promotional campaign for them. You can have a look at our articles and you’ll find that they got pumped through emails, paper mailers, landing pages and you’re probably wondering why we’re telling you all this.

It’s really rather simple. NAMG is also being pumped at the moment. The campaign started in mid-July with some emails flying around and a few days later a landing page was deployed which gave the efforts an additional boost. The mailing activity died down a couple of weeks ago, but the touting website is still live and, looking at the chart, it seems to be attracting quite a lot of traffic.

Why are we so sure that the stock movement is caused by nothing more than artificial hype? Well, try as we might, we couldn’t find a single piece of evidence that could suggest future success for NAMG. We wrote a couple of articles on them already and if you check them out, you’ll see that what we have on our hands is a company with very little in terms of financial security. The latest 10-Q covers the first three months of 2013 and, in case you’ve missed them, here are the most important figures once again:

• cash: $113 thousand
• current assets: $250 thousand
• current liabilities: $587 thousand
• no revenue since inception
• quarterly net loss: $1.1 million

At yesterday’s close the market cap is estimated to be around $95 million and when you have all this in mind, you’ll see how inflated the price is at the moment. It probably won’t stay like that in the long run, and we have even more reasons to believe this.

Namely, the pumping campaign. We spend every day covering all sorts of stock promotions and we know that the bigger the budget, the riskier the pump becomes. At $939 thousand, NAMG‘s campaign becomes quite a big one and while it’s not as huge as the ones for Arch Therapeutics Inc (OTCBB:ARTH), Sanborn Resources Ltd (OTCBB:SANB) and, Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII) it does seem to be having a greater effect on the stock performance. The higher the share price goes, however, the higher the chances of the bubble bursting is. The SEC stepping in and putting an end to whole thing (just like they did with BIZM) is also a possibility, albeit, rather gloomy. That’s why proceeding with caution, doing your due diligence and weighing all the risks is essential in case you’re considering a potential investment in any of the aforementioned tickers.