It seems that Fortune Oil & Gas Inc (PINK:FOGC) aims to get into the Guinness World Records as the most promoted company ever. So far the Hotstocked newsletter section has recorded eight pages with promotions on the company this month.
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The campaign started on May 7 and is still going on. A whole host of promoters has taken part in the promotion, which makes it difficult to determine the different pumping groups. I managed to count 11 different promoting groups who received different compensation throughout this month.
Some of the promoters didn’t disclose the names of the paying parties, but others did. Among the third parties that took part in FOGC campaign were Oceanic Consulting, Mina Mar Group and Garden State Resources. The total amount of compensation that was spent on this month’s promotion is $670 thousand.
Paradoxically, despite the huge promoting efforts, the campaign was not able to produce any significant volume surge this month. The most active trading day happened on the fatal Friday 13 when FOGC hit a volume of 4 million shares and rose 22% to $0.05. [BANNER]
This fortunate day for the longs was predisposed by a very bullish MACD configuration. No sooner had the MACD line made a bullish cross with its moving average on May 9, than MACD headed back down on the next day. However, just before Friday 13, the MACD moving average turned into a resistance line for the MACD, which bounced thereof. For the refined day trader this is a rare bullish configuration by the MACD whose effect was immediately felt on the martinet.
No matter whether the surge was caused by the chart or by the promotion, it seems that the efforts to squeeze out a major gain from the company was crowned with failure at this stage. Despite the extravagant promotion and the incessant flood of press releases by FOGC, it became apparent that the market resists to let the stock repeat the huge gains from the past. Maybe investors expect the company to replace the air that comes from the promotions with something meaningful.
