Borislav Tonev

Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) Still Has Some Juice Left

by Borislav Tonev October 8, 2015

Yesterday, Black Stallion Oil and Gas Inc (OTCMKTS:BLKG, BLKG message board) announced that they have completed the acquisition of the remaining 50% of the Woodrow Prospect in Montana. After receiving a report regarding the reserves of the property, the company came up with a working plan that comprises of four stages, the first of which should be completed before the end of next month.

This definitely sounds like the sort of news that will make quite a lot of people contemplate a potential investment. We know for a fact, however, that despite the optimistic press release, some wouldn't go even close to the stock.

The people who invested in BLKG a couple of months ago will certainly think twice before throwing any more money at the ticker. They placed their buy orders back then because a certain Chris Porter from an entity called Wall Street Report had made a colorful and optimistic landing page which was accompanied by an unnecessarily long but equally optimistic video.

A lot of people fell for the promises of wealth and fortune and they failed to notice a few major red flags. They didn't pay attention to the annoyingly fine print at the bottom of the landing page, for example, which told them that Wall Street Report was managing a budget of $150 thousand which was set aside for pumping the stock.

They also didn't open the latest 10-Q to see what BLKG's financial situation looks like. It's not pretty:

  • cash: $239
  • total assets: $7,331
  • total liabilities: $20,571
  • NO revenues since inception
  • quarterly net loss: $34,671

People failed to notice the fact that Mr. George Drazenovic, BLKG's CEO, has some experience with penny stock companies. Unfortunately, it would appear that wherever he goes, he is followed by the nasty promoters. The story of Sun Cal Energy, one of the enterprises Mr. Drazenovic has been involved with in the past is particularly painful. The company in question was traded under the SCEY ticker symbol and in 2007, it fell victim to a rather big pump campaign. The promotion was cut short by an SEC suspension and SCEY was later revoked which eliminated the chances of getting any sort of returns on your investment.

Even if you decide to disregard Mr. Drazenovic's past, you mustn't disregard BLKG's history. That's because once you delve deep into it, you'll see that some people could be holding nearly 20 million shares which were originally acquired for less than $50 thousand.

The investors who failed to notice all these facts and the ones who ignored our warnings got seriously burned when BLKG dropped from almost $2.30 per share all the way to $0.92 in a matter of a little over a month and a half. They are the ones who are probably not that ecstatic about yesterday's press release.

Others, however, are buying. Thanks to them, BLKG gained 9% yesterday, and they are pushing the stock further up in early trading today. About twenty-five minutes after the opening bell, BLKG is traded at $1.21 per share which is an impressive 12% above yesterday's close.

These investors are buying both because of the press release, and because of the pump which is still active. In fact, if the disclaimer is to be believed, the budget has miraculously grown over the last few weeks and it now sits at $1 million. The campaign is still pretty effective, but will the astronomical budget make the future stock performance more stable?

It's up to you to weigh the odds. Don't forget, however, that all the problems we outlined above still stand.

Comments 7

1. Guest
October 28, 2015, 01:28PM

Quotes Oil=UP, BUY GDP to profit.

GDP is an oil company.
Oil is up, BUY GDP to profit.

Go GDP Go **********************

2. Guest
October 28, 2015, 01:27PM

Quotes Oil=UP, BUY GDP to profit.

GDP is an oil company.
Oil is up, BUY GDP to profit.

Go GDP Go **********************

3. Guest
October 24, 2015, 12:02PM

Quotes SELL NBG to BUY EGFEY.
NBG and EGFEY are both Greek banks.
EGFEY has more upside potential than NBG because EGFEY pps is the lowest(Only $0.0178 per shars on 10/23/15).

EGFEY is a STRONG BUY.

4. Guest
October 17, 2015, 08:33PM

Quotes NBG is National Bank of Greece.
NBG=$0.81, UP 15.71% on 10/16/2015 because NBG is doing better,
Greek economy is getting better.
NBG is Greece's most prestigious bank stock, NBG is the largest bank in Greece.
NBG is a STRONG BUY.

NBG is a NYSE big board stock, NOT an OTC stock.

NBG stock is at super bargain price.
BUY NBG stock to profit.

5. Guest
October 14, 2015, 10:17AM

Quotes YGE=UP because it repaid $110ml debt on 10/13/15
(SOURCE: Yahoo.finance, Type in YGE, Read the 10/13/15 PR)
BAODING, China, Oct. 13, 2015 /PRNewswire/ -- Yingli Green Energy Holding Company Limited ("Yingli Green Energy" or "the Company") (YGE), one of the world's leading solar panel manufacturers, today announced that its holding subsidiary, Baoding Tianwei Yingli New Energy Company Limited ("Tianwei Yingli"), has substantially repaid the Mid-Term Notes ("MTNs") due today, which was previously restructured to be paid by the end of 2015. Approximately 70% of the MTNs including interest totaling $110 million USD .

YGE is a solar energy company. It owns four(4) solar panel manufacturing facilities.

Its website is YINGLISOLAR.com, visit its website, clicking on "products" to views its manufacturing facilities.
YGE is UNDERVALUED. YGE=STRONG BUY.
BUY YGE to profit.

6. Guest
October 10, 2015, 01:44PM

Quotes REN is an oil & gas stock. It's time to buy REN.

(Note: 1)REN pps=$0.5629 as of 10/9/15
2)REN is a NYSE big board stock, NOT an OTC stock
3)BLKG is an OTC stock.
3)REN is bigger than BLKG.)

REN= a strong buy BECAUSE:

1)Oil prices have hit bottom(Oil prices have been UP).

2)REN sold one(1) of its properties for $55ml on 10/8/15.

(SOURCE: Yahoo.finance, Type in REN, Read the 10/8/15 PR)
Denver, Colorado – October 8, 2015 – Resolute Energy Corporation (“Resolute” or the “Company”) (NYSE: REN) announced today that it has closed the sale of its Hilight Field assets in the Powder River Basin to a private party for a purchase price of $55 million. The transaction has an effective date of July 1, 2015. The net proceeds of the sale have been used to pay down amounts outstanding under the Company’s revolving credit facility.

3)Oil stocks are HOT again. REN is a STRONG BUY.
BUY REN to profit.

7. Guest
October 09, 2015, 08:59PM

Quotes REN is an oil & gas stock. It's time to buy REN.

REN= a strong buy BECAUSE:

1)Oil prices have hit bottom(Oil prices have been UP).

2)REN sold one(1) of its properties for $55ml on 10/8/15.
(SOURCE: Yahoo.finance, Type in REN, Read the 10/8/15 PR)
Denver, Colorado – October 8, 2015 – Resolute Energy Corporation (“Resolute” or the “Company”) (NYSE: REN) announced today that it has closed the sale of its Hilight Field assets in the Powder River Basin to a private party for a purchase price of $55 million. The transaction has an effective date of July 1, 2015. The net proceeds of the sale have been used to pay down amounts outstanding under the Company’s revolving credit facility.

3)Oil stocks are HOT again. REN is a STRONG BUY.
BUY REN to profit.

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