Black River Petroleum Corp.. (OTCQB:BRPC) is a name that I believe is currently the target of a penny stock promotion scheme. It is my view that the stock's intrinsic value is somewhere near $0, and it is with conviction that I recommend that any investors currently in the name sell the entirety of their stakes immediately. I also believe that Black River Petroleum Corp. is a stock definitely worth shorting. My track record of identifying and publicly exposing such highly overvalued equities is excellent:
Black River Petroleum Corp. focuses on the oil and gas industry. It plans to develop an oil and gas project. The company was formerly known as American Copper Corp. and changed its name to Black River Petroleum Corp. in October 2013 to reflect its change of focus from metal exploration to oil and gas industry. Black River Petroleum Corp. was founded in 2009 and is headquartered in Denver, Colorado.
Little Revenue. Debts. No Business. Bright Future?
As is usually the case with these types of hyped-up scams, it takes only one quick glance at the balance sheet to realize that the $84M market capitalization that this equity commands is beyond ludicrous. With $0 on hand and $640,000 in operating loss. It's my suspicion that the purpose of this company is not to succeed, but to sell stock. The recent volume is due to overly bullish promotional mailers.
Picture of $BRPC Chart
You can see that trading in Black River Petroleum Corp. started seeing really increased volume on April 9, 2014. Black River Petroleum Corp. You can see it was around the this time the landing page went up. Coincidence with the time of the hard mailer and increased volume in Black River Petroleum Corp.? Absolutely not.
Online Landing Page
Go here to see details about the landing page.
CFM has received and managed a total production budget of $250,000 for this print advertising effort and will retain any amounts over and above the cost of production, copy writing services, mailing and other distribution expenses, as a fee for its services.
You can see obviously someone is interested in increasing public awareness for Black River Petroleum Corp. Most likely the insiders, who have 33,000,000 free trading shares in Black River Petroleum Corp. Why else would someone spend $250,000 to increase public awareness? At these levels, those are worth about $40,000,000! It is worth it to them, because if they can bring in buyers and liquidate their shares around these prices, that can mean millions in profits! Running pump and dump schemes is a lucrative business, and that is why we see it way too often. My job is to wake you up.
The promoter behind Black River Petroleum Corp is Smallcap Fortunes / Capital Financial Media.
How will the Black River Petroleum Corp story play out? It will act like the rest of their promotions. People who buy Black River Petroleum Corpwill lose and the insiders will laugh all the way to the bank. Interested in some of their past promotions? Below are some of their promotions, You can tell when the promotion starts by seeing when the stocks start trading large volume.
New America Energy $2,100,000 budget see here. Promotion started in November.
American Energy $1,700,000 budget see here. Started in April.
(Click to enlarge)
Stevia Nutra Corp. $1,275,000 budget see here. Started at the end of May.
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LifeTech Industries $600,000 budget see here. Started at the end of November.
Most Recent David Moore Hard Mailer
Recent SEC Halts
The SEC is finally cracking down on pump and dumps lately. Here is a list of big stock promotions that have been halted recently. I believe Black River Petroleum Corp. has a chance to be next. Stocks that get halted tend to reopen 2 weeks later down 70%+. My latest report on Imogo Mobile Technologies Corp. was halted five trading days after my report was published. Makism 3D Corp. and Life Stem Genetics were two pumps that halted after my articles, as well.
- Imogo Mobile Technologies Corp. (OTC:OTC:OTC:IMTC) halted February 19, 2014.
- Centor Energy, Inc. (OTCQB:OTCQB:OTCPK:CNTO) halted February 11, 2014
- Makism 3D Corp. (OTCQB:OTCQB:OTCPK:MDDD) halted December 13, 2013.
- Guar Global Ltd. (OTC:OTC:OTC:GGBL) halted December 6, 2013.
- Nevada Gold Corp. (OTC:OTC:OTC:NVGC) halted November 27, 2013
- Life Stem Genetics Inc. (OTC:OTC:OTC:LIFS) halted November 25, 2013
- Sovereign Lithium (OTC:OTC:OTC:SLCO) halted November 15, 2013
If you own shares of this company, get out now. Do not hope that you can hang on to sell them to a greater fool. These shares are worthless. I have showed you that the reason for the promotional mailers indicates that the individuals behind this stock scam are trying desperately to unload their worthless shares onto the unsuspecting public and book a huge profit before the inevitable collapse. If you are a more sophisticated investor and can get a borrow on these shares, then I believe that shorting this name will be highly lucrative for you. In this stage of the promotion, with the stock halt risk, it is not worth staying long overnight to make $.05-$.10 more in gains when there is a risk of 70% in losses.
It's the same story with all the Capital Financial Media past hard mailers, why would Black River Petroleum Corp. be any different?
I contacted the company with my concerns, and I am waiting to hear back.
Disclosure: I am short BRPC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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