Anastas Gegov

Omagine Inc (OTCMKTS:OMAG) Takes A Hit

by Anastas Gegov July 13, 2015

The last time we wrote about Omagine Inc (OTCMKTS:OMAG, OMAG message board) was back in the beginning of October last year when the company stock became quite volatile for a short period of time. The reason behind the increased investor attention was a $2.5 billion development project on the coast of the Sultanate of Oman.

 

The short-lived hype was followed by a return to illiquidity, as well as a steady descent down the charts. Then, suddenly, OMAG began climbing the charts in the final sessions of last month, despite the depressing numbers that were contained in the company’s financial statement for the first quarter of the year.

 

  • cash: $529 thousand
  • current assets: $563 thousand
  • current liabilities: $1.5 million
  • quarterly revenues: ZERO
  • quarterly net loss: $723 thousand

 

Those are certainly not the numbers you would expect to see in the report of a company that is valued at over $40 million. Still, that seems to not be a reason for which the stock would hold its ascent and we saw OMAG climb all the way to the $3 per share mark on July 9.

 

Despite the update that came from the company that same day, however, we saw the ticker drop 18.67% in the final session of last week and close at $2.44. Even though investor interest was higher than the average the 34 thousand shares that were traded at that price generated only $94 thousand in daily dollar volume.

 

OMAG seems stable in the beginning of this week as the ticker has barely moved since today’s market open. Doing your due diligence and weighing out all the risks before putting any money on the line is absolutely crucial.

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