Dragni Dragnev

Sabine Oil & Gas Corp. (OTCMKTS:SOGC) Bounces Like A Dead Cat

by Dragni Dragnev March 19, 2015

Sabine Oil & Gas Corp. (OTCMKTS:SOGC, SOGC message board) bounced back to $0.12 after nearly 10 million shares of its common stock changed hands yesterday.

Evidently investors saw the company's latest dip all the way down to $0.043 as an opportunity to load up on cheap SOGC stock. The ticker started out with a sizable bounce and picked up the pace even further mid session and ended up jumping 177% before the final bell caught it.

In hindsight, this jump was probably not impossible to predict – it's only natural for a stock's price to rise if it becomes severely over-sold. However, there were also serious reasons to doubt that the ascent would continue for much longer - and true to fact, it didn't. SOGC stock prices are already 30% down in early trading today.

As the old saying about the stock market goes – even a dead cat can bounce if it is thrown from high enough. Unfortunately, SOGC's current state of affairs and its charts reveal that it may have a lot in common with the proverbial deceased feline.

To say that the oil crash hasn't been good for business is a severe understatement if there ever was one. Add the de-listing from NYSE to the horrible losses SOGC keeps suffering and you certainly don't get a pretty picture. And, as we've said before, it doesn't seem like said state of developments is going to change for the better any time soon, either. Not until the oil crash is over, anyway - but by that point it may very well be too late for SOGC.

In any case, investors would do well to consider this. Although SOGC has been very careful not to mention bankruptcy, investors on the OTC Markets have seen companies in better shape file under Chapter 11.

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