A truck driver at a Starke, FL rest stop once told me “you can’t trust something that bleeds for 5 days and doesn’t die.” What about a penny stock that bleeds for more than 2 months? If you need a visual aide for that, just have a look at the recent share price performance of Worthington Energy, Inc. (OTC: WGAS) has vommitted up the last 3 months. Despite having effectuated a 1-for-10 reverse split in November, share prices of WGAS stock have fallen to the level where only molten lava survives under those extreme pressures.
Factoring the reverse split into Friday’s extreme volume session, the highest ever on record, this wannabe oil and natural gas producer with toxic financing coming out of every orifice and unreliable financial statements could be staging a bounce worth every sub-penny in your pocket.
Our Next Pick Is Coming Soon! Click HERE To Make Sure You Don’t Miss Any Of Our Breaking Alerts!
WGAS Stock Chart
Market Cap: 132.78K
Last: 0.0052 ▼ -0.0008 (-13.33%)
Volume: 12,065,999
Dollar Volume: $60,851
Open: 0.006
High: 0.006
Low: 0.0045
Trades: 132
Authorized: 500,000,000
Issued and Outstanding: 42,962,540?
14-Day Rel Strength: 25.95%
14-Day Stochastic: 4.83%
Looking for Hot Penny Stocks?
Click here To Receive FREE Penny Stock Alerts
First of all, imagine if there wasn’t a 1-for-10 reverse stock split in November — WGAS stock would be 0.00052 at Friday’s close. Now factor in that every toxic financier with the exception of TCA Global Masterfund is involved in some aspect of convertible debt and longs are holding wet paper bags with cinder blocks inside them and you can see the stage how FUBAR Worthington Energy stock is at present.
At around the same time the reverse split went into effect, the Company reported that their accounts, Hansen, Barnett & Maxwell, P.C., raised questions about the derivative liability associated with warrants issued in a private placement in May 2011 and consulting warrants issued in June 2011. After this and that, hemming and hawing, it was determined that Worthington Energy’s consolidated financial statements for Q1 and Q2 of 2012 should not be relied upon and will need to be restated. Kersplat!
This is where it gets extremely questionable (as if it wasn’t already).
The Company reported a few days after the accounting inquiry that “production from the Company’s I-1 Well is flowing through the pipeline and registering through our sales meter at the Six Pigs processing facility onshore.” This came out just as WGAS stock was beginning to bleed like a stuffed pig.
Company President & CEO, Tony Mason, stated that “just before Thanksgiving, we performed a final separator clean out and installed a compressor, which facilitated pressuring up the line allowing oil and gas production to be metered and sold.” A few days later, on December 4, Worthington Energy reported the first sales of oil and gas from its I-1 Well.
If anything was due to cause a bounce on WGAS stock, this was surely it. The result, shares opened at 0.054, gaining as much as 0.0008 (16.67%) before closing at 0.055 on volume of just 936,183. Pathetic doesn’t even begin to describe that.
Within the announcement of the Company’s first sales from the I-1 Well, Tony Mason stated that “unfortunately, on the heels of our good news, we received notification from Dominion that the main interconnect pipeline, operated by Exxon Mobil, was to be shut down immediately for urgent repairs.” Talk about a cock block to the momentum patrol.
Since then, the oil well is apparently flowing again while shares of WGAS have now dropped off more than -90% and have sent even the most convinced shareholders into a frenzy of wording and conspiracy theories as to why the IR phone line is disconnected. Dude, if you had seen your share price drop -90% in the course of less than 2 months and had people calling you all day long wanting answers, forget about J.C. — WWYD?
It must really suck to be Tony Mason right now, but it’s great time to be a trader who doesn’t own any shares in WGAS yet. With everything looking like a bounce play may finally be set up for this tampon wearing pig of a penny stock, WGAS is worth a strong look at the open on Monday.
About WGAS Stock
Worthington Energy, Inc., an energy turnaround company whose strategy is to acquire cash flow producing properties with proved and probable reserves, develop the fields by reworking existing wells and drilling new wells, engages in the acquisition, exploration, development and drilling of oil and natural gas properties. Click here to view the SEC filings for WGAS.
Last 5 Trading Sessions:
| Date | Last | Change | % Change | Volume |
| 02/01/13 | 0.0052 | -0.0008 | -13.33% | 12,065,999 |
| 01/31/13 | 0.0060 | -0.0038 | -38.78% | 5,885,000 |
| 01/30/13 | 0.0098 | -0.0017 | -14.78% | 4,391,800 |
| 01/29/13 | 0.0115 | unch | unch | 1,139,300 |
| 01/28/13 | 0.0115 | -0.0005 | -4.17% | 417,500 |
Bottom Line: WGAS has been one of the worst performing pigs on the OTC, even worse than when Awesome Penny Stocks pulls the plug on their promos. You gotta love though that the WGAS faithful are hanging in tough and strong which makes for a great opportunity to have WGAS stock ready to pounce on when the blood starts to dry.
Here is your opportunity to subscribe to the Most Read Penny Stock Newsletter
If You Can’t Make Money With Us, You Shouldn’t Be Trading Penny Stocks
(We are 100% Anti-Spam and will never rent or sell your information)
ShareFEB
