While they are not big on issuing PR and are subject to a board approved reverse stock split before the end of next month, the penny stock of Pegasi Energy Resources Corporation (OTC: PGSI) just can’t seem to put on the brakes since December. Shares of PGSI stock have nearly doubled since they hit their low in mid December. With another $1 million in revenues set to be booked for the year ended December 31, 2012, what’s the plans for this oil and as developer out of Texas?
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PGSI Stock Quote
Market Cap: 50.37M
Friday Close: 0.805 ▲ 0.0051 (0.64%)
1st Resistance Point: 0.8167
2nd Resistance Point: 0.8283
1st Support Level: 0.7817
2nd Support Level: 0.7583
Issued and Outstanding: 62,575,204
14-Day Rel Strength: 69.37%
14-Day Stochastic: 63.89%
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With a very similar pattern to their 2011 performance, Pegasi Energy’s main exploration and production operations through its wholly-owned subsidiary, Pegasi Operating, Inc. and TR Rodessa, Inc. are looking to equal revenues from the year prior. What has increased as of September 30, 2012 is the Company’s oil and gas properties from assets from $21,553,704 as of the start of 2012 to $28,534,363 as of the end of the third quarter – a booming sign that the Company is headed into the right direction.
Among the major revenue producing assets, the Company’s TR Rodessa owns an 80% undivided interest in and operates a 40-mile natural gas pipeline and gathering system which is currently being used to transport the Company’s hydrocarbons to market while excess capacity on this system is used to transport third-party hydrocarbons.
Anytime you see a penny stock mention its “excess” you know its simply a matter of time before a major producer in their industry comes knocking on the door with a big fat check in hand.
What’s very interesting about PGSI stock is that, effective on August 9, 2012, a majority of shareholders granted the Board of Directors of Pegasi Energy Resources the discretion to amend the Company’s Articles of Incorporation to effect a reverse split of the Company’s common stock, at a ratio not less than 1-for-2 and not greater than 1-for-10 as long as such amendment is filed with the Secretary of State of the State of Nevada by March 31, 2013.
Since it seems only fitting that PGSI uplist itself onto a more reputable exchange or make itself more attractive for a buyout, shareholders in between December 15 and the early part of January are already in the money. New money flowing into PGSI stock could also be setting itself up for a decent double digit gain over the next few weeks as well.
About PGSI Stock
Pegasi Energy Resources Corporation is engaged in the exploration and production of natural gas and oil through the development of a repeatable, low geological risk, high potential project in the active East Texas oil and gas region.
Last 5 Trading Sessions:
Bottom Line: Oil and Gas focused penny stocks have long been attractive for buyers of all sorts and PGSI fits the bill for anyone not a flipper. Since March is the expiration date set by the Board of Directors for the proposed reverse stock split, it will interesting to see just how high PGSI stock can get and f it can break its 52 week high of $1.05 set back in June.
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