What’s Happening With The Pump On North American Oil & Gas Corp (OTCBB:NAMG)?

The last promotional email on North American Oil & Gas Corp (OTCBB:NAMG) to hit our inbox is dated August 21. It was sent by The Stock Junction and the bright promises and projections found in it were authored by Mr. Tobin Smith. The first sentence is written in an attention-grabbing red typeface and it quotes: “Before I report this to the nation… I’m reporting it to you!“. Then Mr. Smith goes on to say that a certain Southern California Oil boom is going to make investors “incredibly rich“. Really?

Well, let’s look at the facts. Pretty much the same things are quoted in the special landing page designed to tout NAMG. It’s also authored by Mr. Smith and if you check it out closely, you’ll see that he almost threatens the regular investor by saying that he could be “on the news” telling everyone about the great opportunity that NAMG presents. The page went online during the first half of July and right now, more than a month later, he has yet to appear on television praising “the hottest new oil play in America”. There is, of course, a very rational explanation to this. Mr. Smith was fired from Fox not that long ago when he was busy touting Petrosonic Energy Inc (OTCMKTS:PSON) which means that right now, the only ways through which he can inform people about the great small cap investment options, is through landing pages and through his own NBT Equities Research website and newsletter.

As for the “getting incredibly rich” part, that one hasn’t really worked all that well either. Indeed, there was some strong movement between July 29 and August 9 when the ticker skyrocketed from around $0.70 all the way to $1.67 but this is still somewhat shy of the $5 price target set by Mr. Smith. What’s more, it would appear that the stock has settled down a bit since then and after registering daily losses of around 3% on Friday, NAMG finished last week’s trading at $1.27 which is 23% below the 52-week high.

Indeed, the performance might not be as horrific as the ones displayed by GRILLiT, Inc. (OTCMKTS:GRLT) and Wild Craze Inc. (OTCBB:WILD) but it still doesn’t suggest long-term potential.

As a matter of fact, we didn’t manage to find a single thing that could serve as evidence for any sort of continuous growth. On the contrary, the latest financial statement came out on August 12 and it revealed that the cash reserves are running out while the current liabilities are increasing. The company hasn’t managed to generate even a dime in revenue since inception and the only thing that traders should rely on while making their investment decisions is the promoters’ promises and the optimistic press releases.

Speaking of which, if you check out our previous article on NAMG, you’ll see that we were wondering how they’ll manage to raise the money needed to increase the working interest in the Tejon Ranch project and we think that the 8-K filed a week ago might contain the answer.

According to it, they have sold around 280 thousand shares to an entity called Springhouse Investments, Corp. for the total proceeds of $225 thousand. There isn’t much information about Springhouse available on the Internet which is somewhat disconcerting but, more worryingly, the stock was sold with a great discount – $0.80 per share which is around 40% below the then current value.

You might be thinking that these shares alone won’t be enough to make that much of an impact on the ticker’s behavior, but it’s still worth having them in mind when making your decision. Of course, you should also make sure not to forget the fact that an entity called Genius Marketing spent around $1.3 million for the touting of NAMG. They will probably want some returns on their investment which in turn will probably cause some huge losses for the people who bought in on NAMG while the price was artificially inflated.