Anastas Gegov

Up And Down The Charts With Omagine, Inc. (OTCMKTS:OMAG)

by Anastas Gegov October 6, 2014

The stock of Omagine, Inc. (OTCMKTS:OMAG, OMAG message board) is usually thinly traded and the daily dollar volumes rarely exceed $10 thousand, while the company is holding a pretty decent price for an entity listed on the OTC markets.


The company rarely managed to attract decent investor attention, even when it was pumped back in October, 2013. The balance sheet of OMAG doesn’t suggest anything different. Here is what the company recorded in 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


The interesting thing is that the company hasn’t managed to generate any revenues since its inception back in 2005, while in the same time accumulating a total net loss of over $19 million.


And yet, here we see that on October 2 the company made a press release with which it announced that it has signed a multi-billion dollar agreement with the Government of the Sultanate of Oman for the development of a tourism and real-estate project.


This sparked a lot of investor attention and the company immediately began climbing the charts, going up 100.61% during the same session, closing at $3.29. The total amount of traded shares also sky-rocketed and the 586 thousand that changed their owners during the day generated some $1.82 million in daily dollar volume.


The final day before the weekend didn’t go exactly as planned and OMAG lost 27.05% of the value it had gained while still being able to generate a significant amount of daily trade value, which was estimated at $1.39 million at the final bell.


Still, and OTC company that has generated $0 in revenue for over 9 years, doesn’t have a lot to show in its balance sheet, has already went through bankruptcy once and issuing press releases concerning billion dollar contracts might very well attract the SEC’s attention. And if things turn out to be different from what OMAG is telling us it can get pretty ugly pretty fast.


We might even see a halt of the ticker, so be sure to do your due diligence and weigh out the risks before jumping in on hype.

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