Light Of Day
Deep value, special situations, contrarian

Torchlight Energy: Risks Suggest It May Go To $0

Torchlight Energy Resources (TRCH) is an oil and gas E&P company with assets primarily in the mid-continent US. Despite its promising focus, Torchlight's accounting statements warn of a risk of bankruptcy and likely further losses. It is rapidly losing money at an accelerating pace, and needs to raise capital, but may have difficulty finding additional direct investment. And TRCH is one of two stocks recommended by a research analyst who, at his previous employer, covered and recommended a number of Chinese RTOs, which subsequently went to 0 after being uncovered as frauds. Here is a stock chart of one of these frauds, which he put an $18 price target on as it was on its way to 0....

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