RE:Hang on hereWhat is your definition of a pump and dump?
Lets see a 10 cent stock drills one good well and then go around telling everybody there is an ocean of oil beneath them. The stock moves up past 2.00 on nothing but management hype and pumping and expectations for 3000/day production coming out of 2011. They post production numbers for only one day of flow which were clearly optimized because you can see that production was flat for a long period of time even though they were drilling 10+ wells that year. They tell everybody everything is great. The explanations defied my basic reasoning abilities for almost a year because what I was hearing did not even remotely jive with the research and numbers I was looking at. I had broken the first rule of investing: don't fall in love with a stock. There is zero warnings or mentions of anything out of the usual.
3/20/2009 stock price .39 -My data incomplete here was showing 400 production as of 11/12/2008
3/24/2010 stock price .63 "current production 950"
3/24/2011 stock price 2.08, "current production" 1500 on a "capability" of 2000.
3/21/2012 stock price 1.53 "current production" 1602 (This was on a management guidance of 3000 barrels a day that I recall was only SLIGHTLY lowered earlier in the year)
3/21/2013 stock price .26 They start using "average production" instead of their bs inflated "current 1 day production" numbers that were clearly optimized. We are around where we are today.
Keep in mind that from 2009-2012 they drilled what at least 25 wells? Production never went anywhere because of the pressure issues. They probably should have stopped drilling after the first 5 or so wells. Instead they raised capital and greedily drilled a bunch of holes and hoped for the best while incessantly talking up the land.
What do you call that? Looks like a pump and dump to me. I got caught in it and I am glad I did it at a young age because I am much wiser for it. I would rather do it now than later on when I actually have something to lose.
Sorry cowboy, I couldn't stay away!