Virtus Oil and Gas (VOIL): Millionaire Maker?
Like many Americans, part of my daily routine involves walking out to the mailbox to pick up the pile of junk mail left by the postman.
I don’t know about you, but I throw most of it straight in the trash.
Speaking of trash…
The other day I received a promotional mailer from The Moskowitz Report in regards to Virtus Oil and Gas (VOIL). According to the glitzy review, VOIL is your next best chance to attain “epic wealth”.
Apparently the company is searching for oil in southwestern Utah. Mr. Moskowitz says they’re sitting on, and I quote, a “US Super-Field estimated to hold 3 trillion barrels of oil- or nearly double the world’s proven reserves!”
Out of curiosity I did a few minutes of research to see if VOIL is truly a hidden gem ready to hit pay dirt, or just another energy penny stock to avoid.
Here’s what I found…
My first step was discovering what exchange VOIL trades on. Turns out, it trades over-the-counter (OTC).
As you may remember from this article, OTC energy stocks should generally be avoided since they are not required to report financial results to the Securities and Exchange Commission (SEC).
However, I was pleasantly surprised to find VOIL does have quarterly and annual reports filed with the SEC.
But the good news stopped there…
On page 3 of VOIL’s Q3 report, I learned the company has a whopping $25,596 in cash with $82,220 in current liabilities. Hello working capital deficiency.
Not looking good.
To make matters worse, the company has zero revenues ($0). Ouch.
And to top it all off, since the company’s inception in 2009, they’ve accumulated a loss of $2,184,429. Yikes!
Wait, it gets better…
On page 7 of their SEC filing, we learn Virtus Oil and Gas was, and again I quote…
“…originally formed as Curry Gold Corp. to become an operator and franchisor of fast-casual food catering vans that capitalize on the growing trend of food to go with its Currywurst product…”
A few sentences later we learn…
“… the company abandoned its plans to enter into the catering van business and is now an oil and gas exploration and production company.”
Ok then.
They went from a failed Currywurst caterer to an oil and gas exploration company.
Sounds like a winner. (Note sarcasm.)
Despite all this ridiculousness, shares of VOIL skyrocketed this summer…
As you can see, VOIL advanced from around $0.75 to $2.15 in a matter of months. That’s an eye-popping 186% gain.
Did they strike a Utah gusher?
Nope.
Turns out, The Moskowitz Report was paid $5,000 to promote VOIL earlier this year. In other words, this Utah oil explorer is likely nothing more than a hyped up penny stock promotion campaign.
The sudden acceleration to higher prices was simply due to unsuspecting investors gobbling up shares.
But now it looks like the party is about to end.
With no greater fool to sell to, VOIL investors are running for the exits. Given the company’s current financial position, I’m willing to bet shares go much lower from here.
In my opinion, VOIL is another energy penny stock to avoid!
Until Next Time,
Justin Bennett
BIO: Justin Bennett is the head commodity research analyst at Commoditytradingresearch.com. With over a decade of real world trading experience, he finds ways for you to consistently profit from movements in commodities and the companies producing them. Sign up for our free reports and commodity newsletter at https://commoditytradingresearch.com/free-sign-up.
Category: Energy
