PetroTerra Corp. (OTCMKTS:PTRA) Gets A Pump
PetroTerra Corp. (OTCMKTS:PTRA) exploded more than 50% up the charts yesterday, fueled by a paid pump.
The promoter outfit Wall Street Report did an excellent job touting PTRA. The ticker had been sitting in obscurity for months on end before the e-mails promoting its stock hit inboxes, at which point it jumped to almost a dollar on a dollar volume of $800 thousand.
Still, such results are to be expected, since the pumpers were paid a staggering $150 thousand to tout the company’s stock.
So PTRA definitely had a good run yesterday, opening high and maintaining its altitude throughout the session and gaining even more. But will its run last?
As usual when dealing with paid pumps, there is no way to be sure. Wall Street Report were paid a rather large sum of money, so one could reasonably expect them to continue their promotional campaign for a while more, and if the success they had yesterday is any indication, we may be looking at another jump or two before the ticker’s upward momentum is spent.
Then again, this is a pump jump – which means it will probably end in a horrible crash, as most of them do. Anyone holding onto PTRA shares at that point in time will lose out big time – and it’s important to note that this may occur at ANY point in the near future.
The risk of a crash is made all the more grave by the fact that the company is in the habit of selling shares of its common stock at ridiculous prices. Its latest 10-Q noted that in August 2015 PTRA was selling shares of its common stock for as little as $0.28 a pop. And that’s not the only red flag to be found in that specific report.
Suffice it to say that the financial sheets in it looked like this:
- Cash & current assets – $2 thousand
- Total current liabilities – $129 thousand
- NO REVENUES TO DATE
- Net loss – $94 thousand
What more needs to be said on the matter?
In conclusion – PTRA presented opportunistic traders with an intriguing opportunity for profit yesterday – but investors should treat it with the care that should be afforded to any pump jump, unless they want to reap bitter fruit.