Centor Energy, Inc. (OTCMKTS:CNTO) Remains Shaky, Pumpers Go Quiet
As you probably know, Centor Energy, Inc. (OTCMKTS:CNTO) was first picked up by the paid pumpers in the summer of 2013. The touting did result in a brief ascend, but the tiny trading volumes meant that the promoters have failed to lure in enough new investors. They left the stock to its own devices in June and, predictably, it plummeted to the ground.
At the end of last year, Code Inc, the third party that paid $350 thousand for the awareness campaign decided to give CNTO another shot. This time, the budget is $500 thousand and just like the first attempt, the pump involves a landing page as well as a few email alerts. The final sessions of 2013 suggested that the stock could actually attract some attention but right now, it still seems rather shaky.
According to the domain name databases, the landing page was set up just a couple of days before Christmas and a quick look at the trading volumes suggests that it had an immediate effect on investors. Interest, aided by a couple of emails from Stock Junction, climbed steadily and it culminated on January 2 when CNTO managed to shift more than $3 million worth of shares in just six and a half hours.
The price has also been on the run. CNTO was hovering around $1 per share before the start of the pump, but it managed to close the first session of 2014 at $2.33. Without a doubt, a nice ascend, but also quite disproportionate.
At $2.33 per share, CNTO‘s market cap exceeds $160 million and this simply is far too much for a company that has the following figures in its latest financial statement:
- cash: $4,530
- current assets: $17,053
- current liabilities: $439,124
- quarterly revenue: $0
- quarterly net loss: $166,019
When you have those figures in mind, you’ll see that the corrections experienced on January 3 and on January 6 aren’t really that surprising. Right now, however, it seems to be on the run once again.
Yesterday’s session ended in the green as CNTO managed to bounce by around 13% and about an hour after today’s opening bell, it’s a further 5% up. Curiously, there have been no new emails to facilitate the impressive bounce, but it seems that the landing page on its own is also able to get traders excited.
Considering the $500 thousand budget, we won’t be surprised to see some more promotional activity and a potential press release from the company could really spice things up. Ultimately, however, we are not convinced that CNTO has what it takes to make a significant surge in the right direction. The financial troubles are obvious and they can only be made worse by the pressure of the pump.
A pump which, as we mentioned in one of our previous articles, is headed by Mr. John Myers. We showed you about a week ago that his promotional efforts on Homeland Resources Ltd. (OTCMKTS:HMLA) ended with a spectacular failure and now, we would like to draw your attention to another one of his picks – AmeriLithium Corp (OTCMKTS:AMEL). Back in 2010, when AMEL was hovering around $1 per share, he said that it could reach as much as $7.65 in the next 6-12 months. The ticker closed yesterday’s session at $0.0017. A more recent disaster created by Mr. Myers is Stratex Oil & Gas (OTCMKTS:STTX) whose chart is available on the right.
With a track record like this, we would be extremely careful while considering the risks of a potential investment. And so should you be.