North American Oil & Gas Corp (OTCBB:NAMG) Slips Below $1 in Silence
It took North American Oil & Gas Corp (OTCBB:NAMG) seven sessions to get from $1 to $1.50. In just four more, it’s back down below the $1 mark.
Investors who still believe NAMG is the real deal and just a pump job, assuming there are such, had another painful day yesterday, as they watched the price drop another 7.48% to a close at $0.99 per share. The volume was just over a million shares.
The company has been silent, since the press release last Tuesday. Seeing how the optimistic update may have triggered the massive selling, silence maybe one of the few options NAMG has.
On the other hand, NAMG has been pumped for nearly three months now, and unless the company manages to provide some actual results, or at least some solid financing, paid pumps may not be enough to support the current price.
In August, NAMG agreed to sell Springhouse Investments Corp. 281,250 NAMG common shares at $0.80 per share. The company should have received $225 thousand at the closing.
Equity financing is common for development stage companies, but in this case shareholders were hurt. At the time of the agreement NAMG was trading around $1.20 per share. It should also be noted that $225 thousand doesn’t even cover the expenses NAMG recorded for the previous quarter.
The next quarterly report won’t be due for about a month and a half, but it won’t look much better than the previous one. The suggestion in the pump report of Tobin Smith that NAMG could get to $30 or better in the “not-too-distant future” is nothing more than a pumper trying to tout the stock of a junior oil & gas with next to nothing in assets.
