SmallCapsMarket's  Instablog

Beginning last Friday, shares of GYST went from the .002 range and climbed as high as .0169 on Tuesday. On Monday the company announced that they had acquired a working interest in oil and gas leases in Kansas, which really gave the stock continued momentum.

After reaching the .0169 level on Tuesday, the stock suddenly dropped back below a penny in a matter of minutes. For trader's, the .008 level seemed to be a nice entry point after such a huge move up. It should have been the classic, "buy on the pullback". Then about 15 minutes before the close, then stock dropped again and settled at .0056, which wiped out most of the weeks tremendous gains.

Yesterday we may have found out why that drop occurred. 2 Form 4's were filed showing 20 million shares were issued at Tuesday's closing price to the 2 company officers.

www.otcmarkets.com/edgar/GetFilingHtml

www.otcmarkets.com/edgar/GetFilingHtml

Here is the 8K explaining the acquisition of the oil leases from the 2 company officers.

www.otcmarkets.com/edgar/GetFilingHtml

The Company plans to rework and re-drill the 100 oil wells at a cost between $25,000 and $75,000 per well. For a company that recently went through a reverse split and has only a few thousand dollars in the bank as of the last 10Q, be careful as more dilution is likely in order to raise the money needed to bring the wells online. It's a shame when a company kills a great looking chart to issue lower-priced shares to pay off debt to insiders. Either the math is off, or the 8K contains a typo. GYST did not respond to my request for information.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.