Octagon 88 Resources Inc (PINK:OCTX) is the latest addition to our list of promoted stocks today. As it seems, OCTX will stay in this list for quite a while because the third party staying behind the promotion has only utilized a fraction of the total budget of $150,000 allocated specifically for this stock. So let's take a closer look at the stock.
Even though OTCX was registered way back in 2008, the company literally spent all this time in hybernation mode. It was on Oct. 15, 2012 that the silence came to a close. On this date, the company got its new major stockholder in the face of the Swiss Zentrum Energie Trust A.G. The latter got a total of 14 million OCTX shares, or 52.7% of the company's total O/S. What followed was a forward 3-for-1 split which increased the O/S from 26.5 million to 79.6 million shares. The corresponding 8-K mentions that none of OCTX's directors own any stakes in the company. However, there is more to it than meets the eye. On the one hand, CEO Guido Hilekes seemingly does not own any shares in the capacity of a CEO. On the other hand, that same Mr. Hilekes is the director of Zentrum Energie Trust A.G.
Since Zentrum Energie Trust is the majority shareholder of OCTX, Mr. Hilekes could potentially make a fortune provided that the company's shares do well on the charts. This is most probably the reason why OCTX has just fallen under a heavy promotional attack. As it is, a promoter known as Myers' Secret Stocks has described OCTX as a major oil company Wall Street is clueless about. While the fact that the big players on Wall Street have no idea about that company is true, the one about how major the company is could easily be questioned. Given the very nature of the mining industry, it is very difficult for whatever company to acquire what it takes to make a breakthrough. Besides a considerable amount of working capital, adequate equipment, total perseverance and incredible luck, it must also have endless patience. Even if money were to be flowing in at a breakneck speed, that would still not be sufficient enough to actually start extracting oil within a fortnight.
The misconception that such a development is conceivable is the main reason why we render Myer's promotional email overly enthusiastic at best. Moreover, until the company commences oil production for real, a market price of approximately $5,00 per share, which is OCTX's current price, is indicative of artificial overvaluation relying upon optimistic claims for a bright future.