Before any traders convince themselves that today's strength and/or volume is a reason to buy shares of Atlas Oil and Gas, Inc. (AOLG.OB) or FutureWorld Energy (FWDG.PK), you might want to know they've each been heavily promoted within the last 24 hours.
A little investor awareness isn't necessarily a bad thing. In fact, it may be the only thing that can get a great company presented to interested investors. Unfortunately, the pumping effort can also obscure the information traders and investors actually need to know, and instead dazzle the market with some awe-inspiring price action.
With that in mind, here's a pro/con look at Atlas Oil and Gas and FutureWorld Energy.
The e-mail that touted
FutureWorld Energy (
FWDG) was short and sweet, and relatively benign.
The focal point of the pumping effort was the news that FutureWorld had compelte the purchase of SeaTech Energy, which manufactures hydroelectric turbines that harness energy from the ocean floor. As such, FutureWorld Energy was - hopefully - positioned for growth.
(Never mind the fact that investors know next to nothing about FWDG, and even less about SeaTech.) The weird part is, that news came out in late June... June 30th to be exact. That's a tad stale to be pounding the table now.
As it turns out, either the promoter is very lucky, or knew something. This morning, FutureWorld Energy announced its intent to dive into the biomass energy industry as well. The details were minimal; all we know is the FutureWorld now has an interest in a private research lab focused on biodeisel technology.
Of course, between the pumping on old news and the release of 'new' news, the stock's going nuts..... it's up 62% as this is being written.
Though renewable energy is a viable opportunity, FWDG shares appear entirely dependent on news and promotion to get what little traction they're able to get. When the pump and news subsides, so too could the stock.
Yes, today's volume is eye-popping, but so was the 1.7 million shares traded back on April 30th. The stock went nowhere after April 30th though, and just drifted back to the $0.035 area. Today might be different, but considering the company has yet to offer any real details abut the cost of these acquisitions, when to expect revenue, or what kind of fiscal opportunity they offer, FWDG may have a tough time attracting a buying crowd for longer than a day.
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The fact that
Atlas Oil and Gas, Inc. (
AOLG) didn't even respond to the promotional effort
in the least should tell you something - if the stock can't do it with third party help, then
how could it do it on its own? AOLG shares are flat today, on weaker volume.
Atlas Oil and Gas is technically classified as an oil driller, and like so many of the other small exploratory drillers, there are no revenues - there haven't been since 2007. Atlas Oil and Gas is garnering what they hope to be oil-bearing properties though. The focus, however, has not been in new wells but rather the reclamation of abandoned gas and oil mines.
The gas or oil that's been left behind from a previous operation is usually left simply because it's too difficult or costly to retrieve. New technologies and techniques, however, can make it viable to go back and siphon the rest of it. It's a lower-risk, lower-reward business.
The question is,
will Atlas actually be able to successfully reclaim anything? (Reclamation is still no guarantee.)
The market doesn't seem to think so, judging from the non-response to the recent news and the even
more recent non-response to the pump. AOLG will only go higher if other investors believe in the opportunity, meaning Atlas Oil and Gas has a tough road ahead.
The first drop of reclaimed oil may be the only thing that revives the stock.
If you'd like to know when or if we issue trading alerts specifically for AOLG or FWDG, then be sure to subscribe to our free e-newsletter. It's delivered two to three times per week.
