Centor Energy Inc (OTCBB:CNTO) Hits New Heights

15CNTO.pngAfter some hesitation last week, Centor Energy Inc (OTCBB:CNTO) is going strong once again. The ticker made a remarkable recovery after the two red sessions on January 14 and January 15 and yesterday, it finished the day at $2.50 while registering a dollar volume of around $1.5 million.

A pretty impressive performance for a stock that seemed all but dormant until a month ago. But what are the chances of a more continuous run up the charts?

That’s a really tricky question. As impressive as CNTO‘s chart movement is, it doesn’t seem to be the direct result of some interesting developments around the company. There have been no new press releases since January 3 and the latest SEC filing was published two weeks ago. Even the message boards seem deserted. This means that the only possible reason for the ticker’s ascend is the hype created by the paid promoters.

The thing is, even they seem eerily quiet at the moment. The latest email alert that we received is dated December 30 and although the landing page written by John Myers still seems active, we’re not sure that it alone is enough to cause such intense trading. Considering the $500 thousand budget, we won’t be too surprised to see a paper mailer campaign in the coming days, but, as of right now, we can find no such thing.

All in all, the ticker seems to be moving along under its own steam. And it’s doing rather well. But how long will this last?

Unfortunately, there are one or two things that could put a spanner in the works.

Let’s take the market cap, for example, which, at yesterday’s close, hovers around $171 million. There aren’t many penny stocks that deserve such a high evaluation and we’re not convinced that CNTO is among the few exceptions. According to their latest quarterly report, they have:

  • $4,530 in cash
  • $127,053 in total assets
  • $439,124 in total liabilities
  • no revenues since inception
  • an accumulated deficit of around $430 thousand

Hardly the figures you expect to see from a company that (at least according to the pumpers) is heading for an initial price target of $8 per share.

CNTO_old.pngStill, the hype (wherever it’s coming from) is so far supporting CNTO. Bear in mind, however, that things looked pretty similar back in June 2013 when the ticker was put through its first promotional campaign. Lots of enthusiasm managed to propel the price to over $1, but the momentum slowly died down and by August, it had dropped under the $0.20 mark.

Will it experience a similar crash this time around? Time will tell, but there aren’t many things that could prevent it.

CNTO isn’t the only paid pump that is performing admirably at the moment. Fresh Healthy Vending International Inc (OTCBB:VEND) and Konared Corp (OTCBB:KRED) also managed to register a few green sessions on the trot over the last couple of days. They too, however, might have run too high for their own good.

As we have often said on these pages, doing a lot of due diligence and carefully considering all the risks is absolutely essential when dealing with promoted penny stocks.

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