the flight continued. Yesterday, USOG added the next 50% to its price and traded over 104 million shares on the market. A really shocking value, considering the fact that the average volume of the stock totals about 16 million shares. In that case, what’s the reason for the present high trade and how long can it resist?There is no recent news about US Oil and its current activities remain unknown. Historical records show that the last announcement by the company was released in mid-December, reporting that the client auditor relationship between US Oil and Widmer Roel PC was terminated. According to the announcement, Widmer was dismissed as the company’s independent registered accounting firm and replaced by M&K.[BANNER]
After this news was released, no more information on US Oil’s operations was revealed. Though, last week USOG started to gain at once. Despite the gains, investors seem a bit confused, considering the discussion on investorshub.com message board. The opinions there look quite contradictory as “The last run for USOG was 1000% and then lost 90% of it on the pull back”. Still, the stock was compared to a “hot air balloon going up and away”, defining it as worth-buying. However, no reason for such up move can be found yet.
United States Oil and Gas Corp. is an oil and gas products, services and technology company focused on acquiring and growing domestic oil and gas companies. In its 10-Q report, USGO announced higher sales during the third quarter of 2010, though the company’s deficit went over $2 million and the net loss for the nine months ended Sept 30 exceeded $390 thousand.
According to the quarterly report of US Oil, the company “has incurred substantial losses and debt in the acquisition of its subsidiaries” and as of end-September USGO’s current liabilities exceed its current assets by approximately $4 million.
These factors raise substantial doubt about the company’s future existence as despite the higher sales now US Oil is dependent on improving its cash flows “by issuing additional stock and notes payable along with improving operations”.
