Pacific Oil Company f/k/a Kat Racing, Inc. (OTCMKTS:POIL) Gets the Pump Treatment

POIL.pngThe whole thing started back in February when Wall Street Surfers as well as a few other smaller outfits started sending in alerts on Pacific Oil Company f/k/a Kat Racing, Inc. (OTCMKTS:POIL). Touting has been pretty much constant since then and even Goldman Small Cap Research jumped in at one point with an optimistic research report and a $1.25 per share price target.

Despite the pumpers’ enthusiasm, POIL didn’t really seem too keen on performing. In fact, between February 20 and April 11, it managed to wipe out half of its market cap while registering some disappointing volumes. Yesterday’s performance wasn’t perfect either. The ticker opened with a gap up at nearly $0.37, it briefly touched $0.38, but then slipped and fell down. When the closing bell rang, POIL was sitting at $0.33 per share which is 10% above Friday’s value.

Clearly, the behavior is far from consistent, but the dollar volume (which stands at around $600 thousand) suggests that investors are finally paying attention. So, should they be interested? Or should they simply walk away?

At yesterday’s close, POIL‘s market cap stands at around $18 million and for that sort of money, you’ll get a company that has three full-time employees and a balance sheet that looks like this:

  • total assets: $782
  • total liabilities: $49 thousand
  • revenue: $0
  • quarterly net loss: $354 thousand

Of course, it should be noted that the figures above are found in the latest 10-Q which covers the period ended December 31, 2013 and if the press releases are to be believed, many things have changed since then.

The company has announced numerous acquisitions of producing (or producible) oil and gas wells, a $1 million financing deal, and negotiations for the acquisition of a private company that works in the nano technology sector. The press releases (which, by the way, are suspiciously well-timed with the pump alerts) certainly sound optimistic, but they aren’t accompanied by 8-K forms announcing the actual completion of the deals.

08AHII.pngOne more thing that you probably need to consider is the fact that POIL is currently run by a person called Anthony Sarvucci. A quick check reveals that he is also at the helm of another penny stock: American Heritage International Inc (OTCBB:AHII). In case you haven’t heard, AHII became the target of a multi-million dollar promotion about a month ago and, as you can see from the chart on the right, the pump isn’t really doing the stock any favors.

Will POIL behave any differently? We’re about to find out. You should, however, be sure to do your due diligence and consider the risks carefully before putting any money on the line.

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