Centor Energy, Inc. (OTCBB:CNTO
, CNTO message board
) continues to erupt like an oil well, but be aware that this oil and energy company is just a bait, sweetened by a $500,000 promotion. The last email landed on December 30th, and the exuberance carried over to the new year, and the ticker added more than 26% to stand at $2.33, on buying volumes that bubbled over in the past three days, reaching $3.16 million on Thursday.
The latest reminder came in from The Stock Junction, which renewed the buzz around CNTO from the summer months. Then, a lesser $350,000 campaign boosted the shares, only to see them crash from $1.20 to just 20 cents.
Now, the climb is steeper, and the market value of CNTO, which seemed underpriced, jumped quickly to above $160 million. The sudden revival and the high price indicate that this ticker may be here to stay among the most actively traded, at least for a while, and may also repeat the steep climb, in which it wiped out more than 70% of its value within a few weeks.
The balance sheet reveals that CNTO is nothing more than a skillful spinner of promises. The company holds:
- $127,053 total assets, of which $110,000 mineral property option
- $439,124 total liabilities
- $166,019 quarterly net loss, above $400K total net loss for 31 months
While CNTO seems not too much burdened for now, its prospects remain shaky. The company changed names at the end of last year, from Centor, Inc.
So far, CNTO moves predictably and it is a question of when volumes would reverse and drag the price down.
But to gain a clearer picture, here is what happens to oil companies that fly too high. At the end of last year, a bunch of those tickers sprang to activity, boosted by promoters. One of the picks, Formcap Corp. (OTCMKTS:FRMC) grew from 24 cents to $2, before losing more than 80% of its value in a series of deep cuts in the past days, reaching a mere 14 cents. FRMC was surrounded by optimism, which proved very expensive.
Nevada Gold Corp. (OTCMKTS:NVGC) was yet another mineral claims company that promised gold revenues- but went on to be suspended from trading for more than a week. Later, NVGC resumed transactions, making a large gap between 50 and 13 cents.
For CNTO, investors' opinions vary between the wild optimism kindled by promoters- and the idea that the company does not show true coverage of the claims. We expect that press releases or a new email could keep up the ticker for a while, but inevitably CNTO will fall, so estimate well your preferred time frame and avoid investing unless you can afford to lose the sum in part or in whole.