Stock Tips Won’t Give Up on Tiger Oil and Energy Inc (OTCMKTS:TGRO)
Tiger Oil and Energy Inc (OTCMKTS:TGRO) has been a risky investment sice the very beginning. Even six years ago, when the company was called UTEC, Inc (the ticker symbol was UTEI), there were some rather big red flags surrounding it.
UTEI was providing state-of-the-art testing an analysis services to clients worldwide and although it had an established source of revenues, profitability was nothing but a distant dream. The company was headed by Dr. Fortunato Villamagna (who is now at the helm of one of 2013’s worst promotional disasters – Northumberland Resources Inc. (soon to be known as Supernova Energy Inc (OTCMKTS:NHUR)) and this press release suggests that the ticker had become the target of a pump which involved unsolicited emails and text messages.
That, of course, was a long time ago, but how is TGRO doing right now?
Unfortunately, the company is not flourishing. In fact, if you compare the financial statements from years gone by with the current ones, you’ll see that TGRO is in an even bigger mess. Here’s a quick rundown of the most important figures as of September 30:
- cash: $1,527
- total assets: $1,727
- total liabilities: $131 thousand
- no quarterly revenue
- accumulated deficit: $3.9 million
The $600 thousand financing commitment that they secured recently should stabilize things a little bit, but we’re still not sure if the fresh cash injection will be enough to secure any sort of long-term growth. What’s more, as we mentioned in our previous article, the notes can be converted into common stock at a rate of $0.50 per share which is quite a discount compared to the current levels.
Speaking of which, the share price which, after the 1.65% correction from Friday, stands at $1.19 per share is the result of a $2.5 million promotion which, in turn, raises the risks even further. Just like the spam campaign from 2007, the majority of touting is done through the email, with infamous outfit, Stock Tips, leading the pack. An advertorial called invests.com has also published an overly optimistic article on TGRO and Stock Tips have even gone through the trouble of putting together a 
video about the enormous potential that, according to them, is to be found in the ticker.
They were quite optimistic about another penny stock a couple of months ago. They led the pump for Pan Global Corp (OTCMKTS:PGLO) but, as you can see from the chart on the right, their promises of wealth and fortune resulted in nothing more than a few short spikes.
That alone is enough of a red flag, but when you dig a bit further and see who’s running TGRO at the moment, things get even more scary. Dr. Villamagna is now busy with NHUR, but he was replaced by a person called Kenneth Liebscher whose reputation isn’t exactly spotless either. As we mentioned in our previous articles, he is involved with numerous shady penny stocks and he even had some problems with the SEC back in 2003 when one of his older companies, ThermoElastic Technologies Inc, became the target of an FBI operation called Bermuda Short.
All in all, at the moment at least, there is very little to stop TGRO from taking a dive similar to the one displayed by PGLO. The risks surrounding the company are bigger than ever which means that you should consider all the options carefully before making any rash decisions.
