Anastas Gegov

Omagine, Inc. (OTCMKTS:OMAG) On The Rise Once Again

by Anastas Gegov October 13, 2014

 October has started as quite an interesting month for the stock of Omagine, Inc. (OTCMKTS:OMAG, OMAG message board), which has gone up and down the charts, while managing to attract significant investor attention.

The news from October 2 about the $2.5 billion Omagine Project for which Omagine LLC signed a development agreement with the Government of the Sultanate of Oman made OMAG skyrocket and climb 100% in a single session while generating $1.82 million in dollar volume in a single day.

 

Things, however, turned red quite fast and the ticker lost more than a quarter in the next session, while the amount of traded shares remained significantly high, considering the average volumes that OMAG records.

 

Still, the numbers that are contained in OMAG’s balance sheet aren’t that impressive and such a project seems a bit far-fetched. Here’s what was contained in the report for the second quarter of this year.

 

  • cash: $486 thousand
  • current assets: $504 thousand
  • total assets: $543 thousand
  • current liabilities: $1.66 million
  • quarterly revenues: $0
  • quarterly net loss: $702 thousand

 

This was most probably the reason for the volatility of the stock that brought some serious corrections to OMAG and briefly brought the ticker below the $2mark after it had reached $3.29 per share in the beginning of the month.

 

The ticker managed to return to an upward course after a day of hesitation and another red session and has been climbing since Wednesday last week. It currently sits at $2.80 per share after adding 3.70% in Friday. The volumes, on the other hand, have become smaller and OMAG recorded only $99 thousand in daily trade value.

 

In any case, it would be wise to do your due diligence and weigh out the risks, considering the fact that OMAG is yet to prove it can generate any revenue.

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