PetroTerra Corp (OTCMKTS:PTRA) Tries to Stop Deflating Pump Slip
The pump job for PetroTerra Corp (OTCMKTS:PTRA) is now done for and so is the price spike that it caused. In yesterday’s session PTRA did attempt a push up the chart and closed 7% up, at $0.90 per share. However, this is little consolation for the investors who bought shares millions of shares at prices near $1.50 per share.
The pump campaign for PTRA rolled out on October 11, combining email pumps and a special landing page set up by stock promoters Wall Street Report. The disclaimer of both the emails and the landing page lists a compensation of $150,000 paid to tout PTRA stock. Given that sort of money, the pumpers had no problem giving the stock a ridiculous target price of over $4.7 per share. One minor detail worth mentioning is that the disclaimer states the $150 thousand were paid for, among other things, the ‘printing’ of the advertisement, so even if the budget is not in the millions, there may have been a paper mailer in limited circulation.
The pump fizzled out and PTRA is now 44% below its peak prices but it did give those with a higher risk tolerance an opportunity to make a quick and dirty profit. Those who actually bought into the pumpers’s promises and projections learned a lesson the hard way.
PTRA‘s latest reported balance sheet should be enough to persuade traders that the promoters are pulling those target prices completely at random, spurred on by the money they received to advertise the stock:
- $2 thousand in cash
- $129 thousand in current liabilities
- ZERO in revenues to date
- $98 thousand in quarterly net loss
The company did drop a press release disclaiming any sort of association or involvement with the pump but this came a little late, after multiple days of pump-induced price inflation, on the day when the price peaked and the selling started.
In a previous article we covered some of the rather interesting share issuances the company executed in the past and the potential opportunities for profit they open up at the current price levels.
