PERPETUAL ENERGY INC. (“PMT”) “It’s a penny stock now” said by FirstEnergy Capital’s analyst Michael Hearn. PMT is not only a penny stock now; it’s a bit of an anomaly too. Perpetual is now a penny stock with a whopping one billion, forty-seven million, and seven hundred thousand (1,047,700,000) shares issued and trading at $0.035.
The company was trading at over a dollar a share in 2015 and as high as $5.25 in 2010. As recent as December 2015, just weeks ago PMT had only 153 million shares outstanding. How is that we spell disaster? Wonder if any of the Board or management team has any experience operating a penny stock with in excess of one billion shares issued and outstanding. If not, they may have the shock of their lives coming. It will feel something like setting up your picnic lunch on your campsite table 15 minutes prior Mount St Helens going off. Only in this case you are going to get buried in stock. With a $0.035 share price and this many shares issued the only thing we think that will resemble perpetual will be the ongoing trading of the company’s shares. This is a regrettable outcome for the shareholders and of course we wish everyone involved with Perpetual the best of luck; but would the last one out please be sure to turn out the lights.