Nelly Shishkova

Precision Petroleum Corp. (OTC:PPTO) Pumped Up Heavily by Promotions and News

by Nelly Shishkova February 8, 2011
Precision Petroleum Corp. (OTC:PPTO) has been advancing up fast since last week. Yesterday, the stock hit the next huge PPTO_chart.pnggain with a 20% price jump and traded volume of over 7 million shares.

According to the records, the climb started last week when PPTO reported it has purchased 58% of the Thompson #2 well located in Oklahoma. Then, yesterday the stock price was pumped up additionally by more optimistic news and promotions.

Precision Petroleum announced it was participating in a development project that was to increase the company's production and its revenue significantly. This news has certainly supported PPTO stock price, however, it wasn't the only reason for the high trade.

Again yesterday, PPTO was promoted by an unknown promoter who has paid $100.000 for the campaign. According to stockpromoters.com, the compensation came from an unrelated third party and the services performed have included profiling the company on the PowerPennyStocks.com website and issuing opinions concerning PPTO in newsletters and press releases. In future, PowerPennyStocks.com expects to receive additional compensation, which will be disclosed. Apparently, someone is trying hard to hold the current up move, though the future cannot be predicted yet.

PPTO_logo.pngPrecision Petroleum Corp. is engaged in the acquisition, exploration and development of oil and natural gas properties in North America. The company's 10-K report shows that as of end-September its cash balance has decreased as compared to the previous year, and the working capital deficiency has exceeded $1 million. Apart from these facts, PPTO has a significant accumulated deficit and a net loss from operations.

Presently, Precision Petroleum expects to receive revenues from the Oklahoma properties, however, the final results will be seen after September 30, 2011. Thus, at this point PPTO is dependent upon obtaining financing to pursue any extensive acquisitions and exploration activities, which however cannot be guaranteed.


Comments 0

Type the characters that you see in the box (5 characters).