Gediminas Jasionis

Cobra Oil & Gas Company (OTC: CGCA) on the move! What comes of it?

by Gediminas Jasionis August 27, 2009
cobra_logo.jpgFrom the first sight this appears like just another company using stock promotion services. On paper Cobra Oil & Gas Company (CGCA.ob or OTCBB: CGCA) currently has neither a significant amount of cash nor other means of funding. But they have some potential leases, which have brought in interest from parties capable of providing the capital.


Their stock price was really rolling since Tuesday, supported by some news reporting updates on the possible drilling sites. This was a rebound after the price had rolled down for over half a month.

Apparently their latest SEC filing fails to mention the $10 million equity funding Cobra secured on July 8, 2009. This is far greater than the $530 thousand working capital deficit Cobra has accumulated to date. It also solves the company's future requirement for cash. Their estimates show the next 12 months will require somewhat $180 thousand if they want to continue their operations. That's only a fraction of the funding they've secured.

Investors' interest in the company is further driven by various researchers putting up price targets of $3 and above. Some even claim the company will be worth $9.5 per share by the end of the year. While that may not actually happen, I still have to hand it to these folks for going forward without having much to start from.

Reference:

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