The Stock of Legend Oil and Gas, Ltd (OTC:LOGL) Stays High and Strong
13 Jun 2011

After noting its recent high of $2.40 on the OTCQB market, in the last several days the stock of Legend Oil and Gas, Ltd obviously decided to take a breath. Perhaps the shares (OTC:LOGL) are accumulating strength and are getting ready for a new eruption? This is just an assumption, as it is hard to predict the exact future behavior of LOGL.

For now, we might say for sure, judging by the well-known data from the stock markets, that the shares began cruising around the $2.00 level. They are doing so on below the average trading volumes. On Friday, LOGL ended at $2.05, moving slightly down from the previous close. The decline of 0.97% was accompanied by a turnover of almost 111K.

At present, the stock seems not ready to break new price records, in spite of the positively looking report on the company, conducted by Global Equity Reporter several days ago. In the past year, Legend began expanding by acquiring deposits of strategic importance.

In October, 2010, the company purchased eight oil and gas leases owned by Piqua Petro, Inc. and located in Kansas. The leases contain 1,040 acres of oil producing land and result in a 87.5% net revenue interest to Legend. In addition, this March Legend acquired, through a series of transactions, more than 3,800 acres of undeveloped mineral leases in Divide County in North Dakota.

Still, there is what to be desired, in respect to the company’s financial condition. The latest 10-Q statements show that Legend recorded revenues of $0.46M for the first quarter of 2011. At the same time, Legend reported a net loss of $0.11M during the mentioned period. Besides, the company’s working capital was less than $17K in the end of March.

Probably, these figures, that do not sound so appealing, might undermine the further progress of the shares. For the time being, however, the stock of Legend Oil and Gas stays high and strong on the market.

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