Sun River Energy, Inc. (OTCMKTS:SNRV) Transforms into Speculative, Choppy Ride
Sun River Energy, Inc. (OTCMKTS:SNRV) has been revving up its engines the whole of 2013, trying to come up from a deep valley. The ticker slid down from $10 in 2012 to reach 35 cents now, but trading in the past six months has been much more active. The ticker is not promoted, and holds some secrets in its “no information” status on the OTC markets.
Still, SNRV attracts much attention with regular press releases, and even offers some outdated financial filings, the last ones from the end of 2012. The company slipped back into the development stage to pursue oil and gas revenues in 2010. Until 2006, it went under the name Dynadapt Systems, Inc.
Perhaps the somehow wide range between 5 and 40 cents made CNRV a self-driven ticker, allowing enough spikes, but also deep corrections. The attempt at bouncing at the beginning of 2012 was just a brief spike in what turned into a long-term downward trend. What we are seeing in 2013 may be a bid for a sideways drift or even a bigger growth, although 35 cents is quite a large price for an otherwise risky and uncertain bid.
The financial reports we have could speak at best of the company’s old glory, so let’s see how it did before it went silent with reports:
- $399,000 cash
- $443,000 total current assets
- $14.2 million total current liabilities
- $21,000 revenues
- $3 million quarterly net loss as of June 2012
Those data appeared a bit late, in November last year. It seems switching to oil and gas has not helped the company much, with limited revenues added to a high debt burden. On top of all, a stockholder started a lawsuit against SNRV, expecting to receive direct value from an oil field in Mexico, instead of allowing directors to foreclose on the property and take it away from the company. The lawsuit demands better investors’ value and corporate governance of the energy assets.
It is unknown if SNRV is attractive enough for pumpers, or if it will be left to its own devices. So far, promoters have had enough other energy tickers, both established companies and development-stage newcomers. One of the loudest promotions for the moment is MineralRite Corporation (OTCMKTS:RITE), until recently known as Royal Quantum Group, Inc. The added interest so far does little to move the stock in a well-established direction. So while both SNRV and RITE look curious, it is best not to try to profit from those stocks unless you can afford the losses.