Last Thursday, the stock price of Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) recorded a strong trading session and closed well above the $1 mark. However, it cannot extend the gains in following trading sessions and in fact has retreated back to the level from where it jumped on Thursday. In last trading session, BLKG declined more than 4% to close the day at $1.
Last week, Black Stallion reported that they have concluded the acquisition deal of the remaining stake of the Woodrow Prospect based in Montana. After obtaining a report pertaining to the reserves of the property, it unveiled a working plan that contains four stages, the first stage of which is expected to finish before the end of next month.
It definitely appears like the news that will encourage people to consider a potential investment. However, it should be worth noting that despite the promising press release, it would be wise to stay away from the stock.
The people who put in their funds in Black Stallion stock a couple of months ago are well acquainted with the problems surrounding the company. They invested back then as an outfit firm had created an optimistic and colorful landing page along with a unnecessarily long but optimistic video.
At that time, many people were impressed by the promotional campaign and therefore, they ignored the various red flags associated with the company. They didn’t consider disclaimer at the bottom of the landing page, which informed the outfit Wall Street Report was managing a budget of $150,000 set aside for touting the stock.
As per the latest 10-Q, Black Stallion posted cash of $239, total assets of $7,331 and total liabilities of $20,571. The company has not recorded any revenue since inception while net loss in the reported quarter stood at $34,671.
The larger trend of Black Stallion Oil and Gas Inc (OTCMKTS:BLKG) has been down for a long time now and the last session was just the latest display of that as the stock ended the day with another loss of 4.76%. The volume of the day 289,000 was much lower than the daily average of 399,000 though considering the price of the stock, both the numbers could easily be taken as unremarkable. The probability of a retest of the long term support area around $0.80 looks pretty strong and may take place soon enough.