The Pump For Polar Petroleum Corp (OTCBB:POLR) Gets Bigger And Bigger

There are several ways through which you can raise some awareness around the shares of a publicly traded company. The first one involves quite a lot of work for the management team. They need to put in some effort and get the whole thing going, persuade investors that they really are onto something and finally come up with a solid financial statement that will serve as proof that all is well. If, however, the management team is in no hurry of completing all the tasks above, there is the way of the paid pumps. You can do it through the newsletters, through hard-mailer campaigns or you can just set up a website full of far-fetched claims and hope that investors will believe you. The people who want to raise awareness around Polar Petroleum Corp (OTCBB:POLR)’s stock have done just that. But has it worked?

So far, yes, it most certainly has. POLR closed last week’s trading at $5.75 per share which means that the market cap at this value amounts to more than $246 million. So, what do you get for that sort of money?

The only people who can give you the answer to that question are probably POLR, themselves. It really is a shame that they can’t be bothered to put the whole information together in a quarterly report and put it up for everyone to see. As we mentioned in our previous articles, the latest financial statement covers the three months that ended on December 31, 2012, which means that there can be no sure way of knowing how they have been doing financially for the last six months.

The people running POLR are probably way too busy making new acquisitions and signing new agreements. On June 4. they published the next in a long line of 8-K forms in which they explain that they have closed the agreement with Mr. Daniel Donkel and Mr. Samuel Cade according to which POLR will be acquiring some additional wells in Alaska in exchange for a total of $1.1 million.

Sounds good, but will they be able to develop the properties and start making money out of them? Well, they won’t be the first trying to drill into some wells sold by Mr. Donkel and Mr. Cade. After some time spent digging around SEC filings, we managed to find this 8-K form filed by Bald Eagle Energy Inc. (OTCMKTS:BEEI) f/k/a Columbus Ventures according to which BEEI acquired some properties in the same Alaskan region from the aforementioned gentlemen. Unfortunately, back in 2009, BEEI stopped filing their reports altogether because of the high costs associated with being a company on OTCBB tier. We haven’t heard from them since and that is enough to raise some doubts around their success.

It’s much the same story with POLR. There’s absolutely no official documents that could give us an information on how (and if) the drilling process is going. We can’t even see any deadlines in the press releases.

Nevertheless, the pumping action continues and while there were some hesitations around May 15 and May 16, POLR are still going strong. The same can also be said about the numbers quoted in the disclaimers. As we mentioned in our previous articles, the pumpers first said that they have received $700 thousand for their efforts. A day later, the fine print read that the total budget is $1.15 million and now, a month later, it’s already gone to $2.66 million. This is indeed one of the biggest pumps currently running and the huge amount spent should be enough of a warning in its own right. The people who shed that much money on a pump will surely want to get some of it back which means that you should be extremely careful when considering POLR as an investment option.

If you’re still not convinced, you might want to take a look at the chart for Cloud Security Corp (OTCBB:CLDS). The pump for them started around the middle of March when the stock was traded around $0.30 per share. Once again, a website full of ridiculous claims was set up and $2.5 million was paid for the campaign. The hyping managed to push the ticker to its 52-week high of $1.47 for a while, but it soon started its descend and right now its stands at $0.40. Looking at the cold hard facts, there really is nothing to stop POLR from following the exact same curve.