Todor Pichurov

Petro River Oil Corp. (OTCBB:PTRC) Logs Another Red Day

by Todor Pichurov July 23, 2013
PTRC_chart.pngSince we last covered Petro River Oil Corp. (OTCBB:PTRC, PTRC message board) three weeks ago, the stock has been through a lot. Sadly, most of that has been stepping further down from its July 1 high of $0.50 per share. Yesterday's session sent PTRC another 11% down to a close of $0.28, or 46% down in fourteen sessions.

The company changed names in March this year, to reflect its acquisition agreement with Petro River Oil LLC, a privately held company. The excitement surrounding the acquisition lifted the stock price and PTRC suddenly shuffled out of the $0.10 - $0.15 range it was content to occupy since December 2012.

The original 8-K detailing the final acquisition came through on April 29 but it did not contain the consolidated financial information of the acquired private company. After a brief price surge around the date the document was made public, PTRC went on a bad streak, dropping over 50% over May and most of June. Late June saw the price reverse its movement and go on an explosive run that seems largely unexplainable, as there have been no stock pumps or significant press releases from the company over that time frame.

The consolidated info of what assets, revenues and profits or losses the LLC acquisition brought to PTRC was rather important to investors. The most current information available from before the acquisition was PTRC's quarterly dated January and the financial figures in that did not exactly inspire a lot of optimism. PTRC had under $50 thousand in cash, no revenues and $3.8 million in quarterly net loss.

The consolidated financials for Petro River Oil LLC were made public on July 9 and were as follows:

  • $6 million in cash a/o December 2012
  • $16 thousand in revenues for Feb - Dec 2012
  • $1.9 million in net loss for Feb - Dec 2012

Despite the fairly attractive cash position of the company, this is hardly the shining performance investors had hoped for and it could be that these figures helped push PTRC back down the slope, as the company reversed from $0.49 per share when the consolidated info wad made public and went to drop over 40% in the next ten sessions. On the upside, there are still no stock pumps for PTRC and while the stock remains volatile, at least it doesn't move because someone was paid money to advertise it.

26LBMH_chart.pngThere were other double-digit movers among yesterday's most heavily traded OTC stocks that commanded even greater volume. Montalvo Spirits, Inc. (OTCBB:TQLA) closed 11% up on dollar volume of over $1 million. Liberator Medical Holdings, Inc. (OTCBB:LMBH) were less fortunate and dropped 10% yesterday.

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