Jovita Baltrusaityte

Avalon Oil and Gas Inc. (OTCBB: AOGN) Wasted $50,000. Did you Get Any?

by Jovita Baltrusaityte June 3, 2009

aogn.jpgYesterday Avalon Oil and Gas Inc. (AOGN.ob or OTCBB: AOGN), a company, which acquires producing oil and gas properties in the United States, paid $50,000 to Quality Stocks for 30 days of stock promotional services. Let’s take a look at the company in more detail.

Comparing the first and last quarterly reports from 2008, it is seen that current assets of AOGN have fallen 55%, while current liabilities jumped up from $220,000 in March to $983,000, a more than four times increase, in December. From the present numbers, it can be stated that the company is unable to pay all the debts. In addition, there is an operating loss of $419,000 which has sprouted almost twice in a single year.

In addition to the financial analysis, it should be mentioned that Avalon Oil and Gas has issued over 50 million shares during 2008. In March the number of shares was about 31 million, while now it has reached 83,838,943. It looks like the company was using its shares to pay for all kinds of services.

Looking at the stock chart, it is observed that the stock price has been trapped in the range between $0.00 and $0.05 for half a year already. However, personally, I am unable to find any reasons for the breakout of the stock regarding the facts that the company is releasing shares at the alarming speed of 150% per year, their debts keep mounting, and AOGN has never generated profits of a single penny.



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