I sold today at $1.50 - probably should have just stayed in but I have a 50% rule. I don't mind being out too much. After such an end of day run up, a gap up tomorrow has a decent chance to fill. I will just play the trend tomorrow.
Here is some background on this P&D (I know some on the board are pretending this isn't a P&D, but I can't be bothered to play that game). I have been in and out of this one for sometime - today was a great pay off.
hotstocked - End of April
Some trees will grow better and faster when pruned, and it seems the Norstra Energy, Corp. (OTCBB:NORX, NORX message board) is following the same laws. After pumpers gave up on the energy stock, a hard week of corrections followed. But NORX managed to pull itself out with a series of press releases, and at the end of last week rested on the peak of a robust climbing trend, with even bigger buying volumes.
NORX is riding the hype of fracking and oil sands, and is touting its engagement with the so called Bakken geological formation, a hopeful part of North America that is seen as one of the solutions to oil scarcity. Since its last press release on April 15th, and another analyst mention on April 22nd, NORX added more than 50% to its price.
Daily volumes are around 1 million shares.
But the winning series was triggered by another promotional effort, this time a full email campaign with a budget of $236,500. Our system counted 33 emails this month, and the constant reminders explain the active volumes. NORX started on an upward journey even before the pumpers took it up, and thus attracted their attention. But let's see if the stock at 63 cents is justified by the fundamental ownerships of the company, which are as follows:
$8,000 cash
Zero revenues in the exploration stage
$20,000 net loss
With these numbers in mind, it is a boggle how NORX will manage to acquire rights to the valuable plots and start the technologically advanced and expensive production of tar sand resources. The biggest resource a company could rely on is a convertible note for $100,000, which could manage to affect stock levels and cause some dilution if turned into stock, but will hardly provide the funds needed for drilling.
The last email for NORX came from PennyStockProfessor.com. So far, NORX is the last campaign this pumper took up, receiving a payment of $12,500 for it. While NORX was risky when it charted the bullish trend on its own, involvement with a paid promoter is an even worse red flag. Promoted stocks tend to drop sharply once the pumpers back away. NORX already corrected once, by around 20%.
But the other picks of Penny Stock Professor paint a more ominous picture. I Ming Corp. (OTCMKTS:IMNG) jumped sharply on its December 2012 promotions, but later slid down 70%, with the most dramatic losses in the first days after the end of the pump.
The opening of the new week will show what direction NORX takes and if there is enough enthusiasm for this ticker. Be aware that NORX moves in disproportion to its fundamental business success, and if the enthusiasm wanes, you may lose a large part of your investment.
OTC Magic comments: This week
Is NORX the Next Big Penny Stock Promo?
Norstra Energy, Inc. (OTC: NORX) has seen accelerating volume and is upward bounce since hitting the OTCBB in early March 2013. Already all the right players are speculating this is the next big promo play, possibly SMA! [I DOUBT THAT]
According to the recent pr; Norstra Energy Inc., is a US based oil and gas Exploration Company with interests in over 10,000 acres of prime Bakken formation land in Montana. The company is targeting the South Sun River Prospect for a horizontal Bakken well proving the prospect from exploration to production.
On March 18, NORX announced that it has entered into a farm-out agreement with Summit West Oil, LLC. for the South Sun River Bakken Prospect.
The South Sun River Prospect was identified by the Company's management as an excellent target for a Bakken well. It consists of over 10,000 acres of prime Bakken acreage with almost 10 years left on most of the leases. Bakken development is considered simple and basic horizontal drilling. Under the Farm Out Agreement Norstra will provide $200,000 for short term working capital and drill and complete a first well into the Bakken Oil Formation by December 31, 2013; a second well into the Bakken Oil Formation by June 30, 2014 and drill and complete a third well into the Bakken Oil Formation by December 31, 2014.
Upon completion of these drilling obligations, Norstra shall have earned 100% working interest in the entire acreage constituting the farm-out land. In the event that Norstra only completes the first and/or the first and second well, but elects not to proceed with the second and/or third well, Norstra will earn the above mentioned working interests only on the spacing unit on which well(s) have been drilled.
"This is a fantastic opportunity for Norstra and its shareholders," said Mr. Landry, the company's CEO. "I believe that this area of Montana could become the next Williston basin in time and we're well positioned to be a player in the area," he continued.
Conclusion: Currently trading at a market valuation of just around $20 million NORX is moving up steadily on accelerating volume. Clearly this looks like a promo in the early stages, who is behind it we still don't know. Stock Market Authority (SMA)? At this point it is still much too early to guess however I will update this article as soon as any information becomes available.
To get the inside scoop on NORX subscribe to OTCMagic.com right now. Also everyone should know, we have something HUGE coming!
Norstra Energy, Inc.
Glen Landry
norstraenergy.com
STOCK INFORMATION
SYMBOL: OTC: NORX
Shares Outstanding: 38,250,000
Market Cap: $19,125,000
Norstra Energy, Inc. (OTC: NORX) was incorporated under the laws of the State of Nevada, U.S. on November 12, 2010. The Company is in the exploration stage as defined under Accounting Standards Codification ("ASC 915") and it intends to engage in the exploration and development of oil and gas properties.
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