Yesterday, the shares of Legend Oil and Gas, Ltd (OTC:LOGL) experienced a massive sell-off and a substantial value loss on probably the most dramatic session the stock ever had. Two publications have appeared this week dedicated to the management of the company and are obviously the reason for the catastrophic performance of LOGL. 
LOGL closed the last trading session with a 64.92% loss from the previous close at $0.621, while the trading volume exceeded 1.8 million shares. RSI indicator shows that LOGL shares are now in the oversold area, but a further decline could be expected. Thus, the session yesterday is marked with two tragic record – the lowest value for the share price and the highest trading volume ever.
The first two out of three parts of a publication describing the dubious past of LOGL current CFO and President have occurred on Sunday and Monday, respectively. The author claims that these two, and only, members of LOGL management have been also in the management of other public companies in the past. Those companies have all had minor assets and no real business, but have paid large amounts of money to various stock promoters, making thus their stock the subject of so called “pump-and dump” schemes.
According to the two articles, the stocks of those companies have as of today all lost around 90% of their value from the time when LOGL managers had managed them, and had ordered the expensive promotions. It looks like traders got well convinced that LOGL would share the same negative performance over time, as there is enough of evidence for LOGL being also involved in stock promotions in the past months.
Our database shows that LOGL has been promoted every month between March 2011 and September 2011, whereby the promotions were mostly paid by an unknown third party. LOGL latest balance sheet shows, however, that the company had $4.3 million in cash at the end of September, raised through the sale of restricted common stock or convertible preferred stock between February and August this year. LOGL report also “Proven Properties” for $684,000 and no long-term debt.
