Bayside Petroleum, Co. (OTCMKTS:BYSD) Loses Ground

The last two days were a see-saw of buying and selling for the stock of Bayside Petroleum, Co. (OTCMKTS:BYSD). The double-zero ticker is now at $0.0077, after losing more than 42%. Trading volumes exceeded $700,000, revealing a ticker made for quick movers. BYSD0726.png

Strange thing is, despite 35 emails this month and a campaign upward of $45,000, this ticker remained mostly inactive, trading in choppy moves, not making a trend or breaking through the 1-cent levels. On July 24th, a pairing of a promotional email and a press release caused extremely active buying, only to be corrected on the next day. The latest pumpers were Prime Time Stocks, and The OTC Professor. USEI0726.png

The last time we looked at BYSD, we noticed it flew, though we came in with heavy warnings that materialized just a day later. The first red flag to base our prediction on was the dismal financial record of BYSD:

  • cash: $0
  • total assets: $2.5 million
  • total liabilities: $765 thousand
  • revenue: $0
  • net loss: $0

Just in the last couple of days the company announced it could start to export actual oil, heavy crude in this case. However, at double-zero prices, BSYD will most probably move on the effect of promotional emails and general sentiment, rather than on true support from oil trading. With Friday’s trade looming, BYSD will have to show where the increased activity takes it. 

Double-zero stocks tend to be unpredictable, spiking sharply and slashing their value in half in close trading sessions. One recent mover is US Energy Initiatives, Corp. (OTCMKTS:USEI), which for a while shot up, but went on to lose 80% of its value. For such sub-penny stocks, the low price is never a guarantee of a big climb, and there is plenty of room to burrow, even into the triple-zero level where defunct small cap companies stay until they decide on another pump campaign. 

Another double-zero that reared its head again is Tranzbyte Corp. (OTCMKTS:ERBB), an old acquaintance that cost investors a lot when the underpriced ticker refused to jump as well as expected. 

So if BYSD attracts your attention, keep in mind the speed of transactions and the great potential downside. Don’t get caught in the promises of future oil trading, as this will have little bearing on how this stock behaves day by day and minute by minute.

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