Petrotech Oil & Gas Inc (OTCMKTS:PTOG)’s Pump Comes to an Abrupt End
As you probably know already, Petrotech Oil & Gas Inc (OTCMKTS:PTOG)’s management team decided to take advantage of the excitement around the marijuana industry and on February 19, they informed everyone that they’re entering the pot business through a newly-formed subsidiary. The chart on the right shows that this has had an absolutely dramatic effect on the stock performance. But was it only cannabis hype that pushed the ticker so high?
The pumpers played their part as well. We have received around forty email alerts since the announcement of the new business from a range of outfits. The last newsletter to join the crew is called Awesome Stocks and the people who stand behind it received $10 thousand for their efforts. But emails alone are, apparently, not enough to properly spread the word around.
Yesterday, an entity called Financial News Media wrote a report in which they tried to comment on the movement displayed by some of the newly-born “pot stocks” like PTOG, OSL Holdings Inc (OTCMKTS:OSLH), and Cannabusiness Group (OTCMKTS:CBGI). They admit in their disclaimer that a third party has paid $1,500 for the dissemination of the information. On March 10, another outfit called BrokerBank Securities Inc announced that they’ve compiled a report of their own and gave us a link to it. Although they disclose no compensation, they seem generally optimistic about the company’s future and they put a $1.875 per share price target on PTOG.
$1.875 per share would have been quite optimistic at the best of times, but, considering the events that occurred a few minutes before today’s opening bell, this sort of valuation now borders on the impossible.
Just as everyone was preparing for today’s trading, the SEC announced that they’re placing a temporary suspension order on PTOG. Apparently, the regulatory organ reckons that there are some questions around “the accuracy and adequacy of publicly disseminated information concerning, among other things, the company’s operations“. In other words, the SEC got fed up with the overly optimistic claims coming out of email alerts and press releases. So, what are the results of this?
About an hour before the suspension, Awesome Stocks said that “PTOG Looks Primed & Ready For a Strong Move This Morning” and we can imagine that the experience for them is quite embarrassing.
The people around message boards who, just a few hours ago, were convinced that the stock is heading for the $1 per share mark are certainly quite shocked as well. But the investors who have their money locked in the stock are the ones who will feel the full impact of today’s decision. Certainly, the action was unexpected for most people, but was it really that surprising for the ones who have been following the company for some time?
Well, we’ve written numerous articles on PTOG and we can safely say that it’s been one of the most heavily pumped companies in Pennyland over the last twelve months. As you can see from our database, even when it wasn’t a pot stock, the ticker was the target of numerous paid pumps.
There wasn’t anything immediately obvious to suggest that, out of all the big stock promotions like Well Power Inc (OTCBB:WPWR) and Great East Energy Inc (OTCBB:GASE), it will be PTOG that will get the axe, but we have warned our readers numerous times about the risks associated with the fact that someone has been spending tens of thousands of dollars on touting the ticker. Hopefully, the majority of people following our coverages have managed to get out on time.
Trading will resume on March 27. PTOG will be quoted on the Grey Market and the company profile will most likely carry a Caveat Emptor badge.