Last Friday, the huge explosion of Global NuTech Inc (OTC:BOCL) on the stock market ended up on the verge of getting out of control. By the end of the session, BOCL stock had gained staggering 200%, marking a three-fold increase in value over the day before and hitting a three-month high. What is more, its volume also went through the roof, shifting more than 78 million shares.
What we have got here is not only some news, but also an active promotional campaign behind BOCL stock.
First, BOCL issued a press release on Thursday informing its shareholders about the successful conclusion of a recently announced JV. As it seems, the company had now got a grip on at least 25 oil and gas wells. While some of them are currently closed, others have been described as currently producing. Given the ever growing importance of crude oil in everyday life, BOCL might be very close to striking ten.
Second, BOCL stock appears to have become a favourite of TheStockExpert since the latter stands behind almost all promotional campaigns in support of BOCL. Last weekend, a new wave of paid advertising worth $15 thousand came hard on the heels of the JV news. Obviously, the huge jump of BOCL stock has whetted investors’ appetite for further gains. The question, however, is whether BOCL has the potential to continue its climb or not.
Although the company’s finance have been discussed a lot recently, a quick look at its 2010 10-K form shows:
- $989 in cash and no other assets whatsoever;
- $153K in current liabilities plus a note payable to the amount of $20 thousand;
- zero revenue and an annual net loss in excess of $1.36 million;
Considering the bleak financial state of BOCL, it is no wonder that it has remained evasive about how it actually acquired a 49% interest in the wells mentioned above. Anyway, the fact that the company has only issued 13% of its A/S of 1.4 billion leaves a lot of room for huge dilution coming ahead.
