Octagon 88 Resources Inc. (OTCMKTS:OCTX)’s PR News Lifts Them By a Third
Since the start of the pump for Octagon 88 Resources Inc. (OTCMKTSL:OCTX) back on March 11 we have been following them. The company is focused on oil and gas exploration and like so many other pennystocks in the same industry displays some of the typical traits for a pump scheme. We discussed the people running OCTX in depth and also covered some of the deals they made in order to boost their balance sheet.
Now lest take a look at the entities standing behind the $1.1 million paid for the promotion. It all started with the landing page created by John Myers’ Secret Stocks that nonchalantly said that OCTX might reach $190 price per share. The disclosed paying party was Morgarten Financial who own around a million shares acquired during the second shares exchange agreement between OCTX and CEC North Star Energy Ltd.
Another financial report covering the company had been created by the swiss entity SISM research. Although they received no money for this particular promotional service on two separate occasions in the past they have been compensated by the same Morgarten Financial to promote other companies.
Despite all the red flags last Friday OCTX not only managed to stop their drop but also added nearly dollar and a half to their value. The reason for this dramatic 37% increase was a fluff PR news that became public in early trading. In it they proudly announced that recent tests have confirmed “the company’s expectations for the possibilities…” Well, at least they said the final report will come out later this week so maybe it will contain more reliable information.
The chart movement of the ticker cannot in the slightest be supported by the fundamentals OCTX has. For the quarter ending March 31, they declared:
- $7233 cash and total current assets
- $31 thousand total current liabilities
- ZERO revenues since inception
- $18 thousand net loss
It is important to do your own due diligence and weigh in all the risks if you are planning to trade a promoted stock. The risks become even bigger at the current levels of the ticker. In early trading today it is 9% up after briefly touching on $6 and retreating immediately.
Another company that had significant gains at the end of last week is ImageWare Systems, Inc. (OTCMKTS:IWSY). They have been climbing higher and higher without the help of any artificially created hype. The stock of Fuse Science, Inc (OTCMKTS:DROP) isn’t doing so well though. The company is posting increasingly better revenues and have been testing new products but the massive amounts of dilution are discouraging potential investments.
