Pumpers Try to Revive North American Oil & Gas Corp (OTCBB:NAMG)

You don’t need to be an experienced stock analyst to know that North American Oil & Gas Corp (OTCBB:NAMG)’s performance over the last couple of months has been absolutely atrocious. There were a few peaks during which a brief profit opportunity was presented, but on the whole, the ticker has been on a slide which has so far culminated in the 52-week low of $0.285 registered on Friday. It seems that the pumpers aren’t particularly happy with NAMG‘s behavior.

And they shouldn’t be. Millions of dollars has been spent on artificially inflating the company’s market cap but, as we mentioned, the whole touting (which was done through emails, hard mailer brochures, and landing pages) has resulted in nothing more than a few short spikes in price and volume. Even so, they still seem convinced that they can do it.

We, on the other hand, are not so sure.

For one, the promoters haven’t changed their tactics at all. Buy Penny Stocks and Super St0ck Plays sent us a couple of emails yesterday claiming that the current low is a “huge buying opportunity” (something they have said many times in the past) while Haywire Viral Marketing are still sending in reports written by Tobin Smith who tries to teach you “How to play the new California Oil Boom” (something he started doing back in the summer of 2013). At nearly $2.2 million, the promotional budget remains the same, but is there anything to suggest that this time, NAMG‘s performance might be different?

As of right now, there’s very little to support such claims. The company’s latest quarterly report, for example, shows that during the three months ended September 30, 2013, NAMG managed to:

• burn through 86% of their cash reserves
• decrease the current assets by around 68%
• increase the current portion of the debt by 3.6%
• generate no revenue
• rack up a net loss of around $170 thousand

The company did manage to secure additional equity financing back in December, but, as we mentioned in one of our previous articles, the terms of the agreement sound far too favorable for Oel und Erdgazforshung AG – the entity providing the cash. Who, by the way, seem to have absolutely no internet presence outside NAMG‘s filings.

This, coupled with the fact that the company hasn’t issued any press releases for the last three and a half months leads us to believe that a potential elevation in the share price will be due to nothing more than hype and unnecessary optimism.

Ultimately, you should be extremely careful when considering the risks of a potential investment in NAMG and a quick look at the pumpers’ track record reveals why. As you can see from our database, Haywire Viral Marketing, Super St0ck Plays and Buy Penny Stocks all took part in huge promotional disasters like Gray Fox Petroleum Corp (OTCBB:GFOX) and Arch Therapeutics Inc (OTCBB:ARTH). The aforementioned campaigns ended badly wrong and so far, the same thing can be said about NAMG. There is still plenty of room to fall though.