Virtus Oil and Gas Corp. f/k/a Curry Gold Corp (OTCBB:VOIL) Sheds a Quarter of its Value
Yesterday Virtus Oil and Gas Corp. f/k/a Curry Gold Corp (OTCBB:VOIL) lost 25% of its value. This was the fifth consecutive red session for the ticker and it’s currently sitting below the $0.90 per share mark for the first time since June 20. All this despite the fact that less than three months ago, VOIL was comfortably hovering above the $2 barrier.
You might be wondering right now: “What’s the reason for the terrible performance?”. Plenty of people will be willing to answer your question.
Some would probably say that the current drop has something to do with the price of crude oil. As you may have heard already, the black gold is not doing too well at the moment and this is affecting numerous industries. Since VOIL is in the business of pumping oil out of the ground, the impact should be even more severe.
Others will argue that the price of crude oil has nothing to do with VOIL‘s devastating crash. They will tell you that the company’s fundamentals are simply too flimsy to support the overblown market cap. You can take a look at the figures as recorded on August 31 and decide for yourself whether that’s the case or not:
- current assets: $25,596 in cash
- current liabilities: $82,220
- NO revenue since inception
- quarterly net loss: $531,372
If you are talking to some of the more observant investors, they might point out a few other problems from the 10-Q. Like, for example, the fact that the drilling of VOIL‘s initial test well has been postponed. It was supposed to start in February 2015, but thanks to a certain amendment to the agreement, it should now start in September 2015. And that’s nine months from now which means that even if VOIL manage to patch up the balance sheet, the stock will remain volatile and unpredictable.
Some people might also tell you that the recent steep depreciation is caused by the lack of any news. It’s no secret that penny stocks often run primarily on hype which means that when there are no optimistic press releases to keep the fire going, tickers tend to tumble down a steep slope. And VOIL hasn’t announced anything since November 7.
You can see for yourself that all of the above listed arguments sound logical and it’s fair to say that they might have contributed to the appalling performance. We’re sure that many more potential causes for the horrific crash can be found if you dig deeper.
The thing is, the drop was never going to occur if the stock wasn’t above the $2 per share mark a couple of months ago. And we reckon that the people who put it there are the ones to blame.
If you’ve been following the world of penny stocks over the last few months, you’ll know that VOIL has been one of the most heavily promoted OTC companies of 2014. Millions of dollars was spent on artificially inflating the share price and touting was done through a host of mediums, including landing pages, emails, glossy brochures, and even phone calls.
Various people were saying that VOIL can reach $7 or even $49 per share. Many investors fell for the promises of wealth and fortune and ended up waving goodbye to a huge amount of money.
They now know that in the vicious world of penny stocks, listening to advice could prove costly and that an investment decision should only be based on extensive due diligence. And we reckon that you should be aware of this too.
