PPWE hit the upper trading range in the last session reaching $0.04 for a share and then closed at $0.03 with a 15.38% increase in the share price. Technically, the new promoting campaign looks perfectly timed and if a sufficient number of traders follow the appeal to put PPWE on their trading list the stock could see one more large jump up as trading volume were week these days. Which is though likely to remain a short-term event.
Promoter’s compensation will consists of 1,000,000 free trading shares, to be delivered by a third party and probably to be sold out within two weeks, the time frame set for the duration of the advertising contract. A new press release came also up along with the newsletters. It said basically the same as the alert, namely that the company has a new President, Andrew J. Kacic, who brings in years of experience in the oil and gas business. Also a new strategic alliance for the development of PPWE wells in Utah was included in the PR.
Mr. Kacic is said to bring in investment banking experience as well, so he should be considered a valuable asset to the company, especially in regard of PPWE need to raise substantial amounts of cash to be able to explore and develop its mineral properties. So far Proper Power and Energy has no revenues from selling any oil or gas, and it has been financed mostly from loans from a major shareholder.
The amount due under the outstanding notes as of September 2010 exceeds almost three times the total value of the company’s assets, and PPWE has yet to hire employees and purchase equipment for the exploration works. Thus, the climbing oil prices mentioned by the promoters in favor of the stock do not seem that relevant for traders at this point.
