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By Nikolay Tomov
Jun 13, 2011

The Stock of Legend Oil and Gas, Ltd (OTC:LOGL) Consolidates Around the $2.00 Level After the Recent High

LOGL Chart - 13_June_2011.jpgEverybody needs some time to rest. For the shares of Legend Oil and Gas, Ltd (OTC:LOGL) the time to relax has come. In the beginning of this month, LOGL looked strong, marking an all-time record of $2.40 on the American OTCQB market. In the last days, the stock calmed down and began to consolidate around the $2.00 level on below the average trading volumes.

The shares seem somewhat unwilling to break new price records, in spite of the positively looking report on the company, conducted by Global Equity Reporter several days ago. On Friday, LOGL finished at $2.05, losing the almost negligible 0.97% from previous close, on a turnover of 110,601.

Perhaps, most of the investors were well acquainted with the information contained in the short, three-page research report. Maybe, this is the reason for their weak reaction and for the calm behavior of the stock. The report reminded the public that last October Legend purchased 100% working interest in each of the eight oil and gas leases owned by Piqua Petro, Inc. in southeastern Kansas.

LOGL - Logo.jpgThese working interests granted the company the right to explore, produce and own oil and gas reserves.

The leases contain 1,040 acres of oil producing land and result in a 87.5% net revenue interest to Legend.

Besides, this March the company acquired, through a series of transactions, more than 3,800 acres of undeveloped mineral leases in Divide County in North Dakota.

Still, Legend probably has some work to do, especially in a financial aspect. The latest 10-Q statements show that the company realized earnings of $0.46M for the first three months of 2011. Nevertheless, Legend recorded a net loss of $0.11M during the quarter. Moreover, in the end of March, the company had a working capital of only $16,748.

It is interesting to note that Legend Oil and Gas, Ltd. (formerly SIN Holdings, Inc.) was originally incorporated with the purpose to develop a web-portal listing senior resources across the USA. In June 2010, the company abandoned its web-portal business and changed it to the acquisition, development and production of oil and gas reserves. We shall see whether the new business will be more successful than the previous one. 

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