Oro East Mining, Inc. (OTCBB:OROE) Wracked by Pump Aftershocks
Yesterday the share price of Oro East Mining, Inc. (OTCBB:OROE) logged its first double-digit green session in a long while, closing 50% up at $0.09 per share. Share volume increased even further, at over 4 million shares traded yesterday. There was no obvious trigger for the surge save for the dying aftershocks of a short pump job targeting the company.
Shortly before the closing bell last Monday OROE published its first PR in a while, announcing that a division of California’s EPA reclassified the company’s ore waste material as Group C, an environmentally friendly grading compared to its previous Group B designation. The news prompted paid promoters to issue alerts for OROE stock, with three emails sent out. All three emails disclosed compensation of $25 thousand paid by third party Douro Capital to promote OROE. The pumps were full of the usual pumper drivel about ‘monster runs’, ‘momentum’ and the rest of the tried and tested stock promoter staple words.
OROE obviously had so much momentum that after trading a total of zero shares on the two days leading up to the October 10 PR, it went to crash 80% within two sessions in the wake of the pump emails.
The last financial report OROE furnished for public viewing is a 10-Q covering the three months ended June 2014. The report contains the following:
- $22 thousand in cash
- $2.2 million in current liabilities
- ZERO in quarterly revenues
- $673 thousand in quarterly net loss
Those underwhelming financials are underpinned by $1.4 million in outstanding convertible debt and an extra, new $1.3 million in convertible debt issued between mid-July and early August. The company had an outstanding share count of 560 million common shares as of August 11 this year.
With long stretches of zero daily volume in the past few months and pumps that lured many into losing a lot of money on OROE seeing how they panned out, investors are advised to be extra careful and do their own research before investing in any stock.
