Conquest Petroleum, Inc. (PINK:CQPT) exploded on the market yesterday with a remarkable jump in both price and volume. The stock surged 140% to $0.12, while the volume reached 81 thousand shares, which is much higher than the 90-day average.
Yesterday, in the middle of the session, CQPT popped up in a newsletter from Nebula Stocks. The promoter presented the stock as a “play of your lifetime” and even stated that it could triple the current gain.[BANNER]
However, it was impossible to determine whether the promoter was compensated or not for the advertisement.
Contrary to the newsletter’s statement, CQPT doesn’t have the fundamental prerequisites to create excitement of such a scale around its stock:
- Liabilities are ten times higher than assets
- $131 million accumulated deficit
- $2.3 million net loss for the three months ended Sept. 30, 2010
In this situation, it is apparent that if CQPT accomplishes the presumable triple gain it won’t be because of its financial situation. The stock’s liquidity drastically declined since 2010 and now it seems that an attempt will be made to revive the interest in CQPT. However, it will take a herculean effort to overcome the counterweight of the company’s fundamental status quo.
