The Sudden Free Fall of Tamm Oil and Gas Corp.(OTC:TAMO)

If a question is stated – so, what is new with Tamm Oil and Gas Corp.(OTC:TAMO)? – the answer would not be so easy to find. The immediate one – the stock just lost over 25% of its value yesterday. Why – why is the difficult part. 

There are no recent press releases, except for the one on June 8th. In fact, there hasn’t been any announcement from the company a long time now. In terms, even the activity in financial forums on the Internet has ceased shortly after the above announcement. The result on the stock market was interesting, however. From the end of April until the beginning of June, it was a pattern of slow and steady increase of the stock price, supported by vivid trading activity. After reaching $0.38 per share, the decline began. The session yesterday was one of particular negative development. Almost 400k shares exchanged hands, making up for a 26% decrease in the stock price, the session closing at $0.25 per share.

What is more interesting is that while there were no press releases and announcements, there was also a steady flow of 8K forms since March – 7 just until the end of May, focusing on different aspects of this company. Yet, there is still no explanation to yesterday’s hype. Short selling activity took place as well, but it was only 1/5 of the total trading volume. [BANNER]

In terms, the balance sheet of the company brings nothing but uncertainty as well. For example, the last financial statement covers a period for last year. The next six months are still an accounting mystery. It is a 10-Q statement that came out last, covering the last three months of 2010. Among other figures, it includes:

So, one question that comes to mind is how did the company fund operations this January with just $2000 at hand? As an exploration-stage enterprise, the net loss is not so surprising, yet uncertainty and lack of information is not what most investors might be looking for.