UTOG – Uniontown Energy Inc

UTOG Hot Penny Stock Or Not ?

Not too long ago,UnionTown Energy (UTOG.OB) seemed to be your standard reverse merger, oil and gas bulletin board penny stock. However, a couple of weeks back, there was a lot of chatter in the penny stock trading community that shares of UTOG had a large PR budget and potentially had a shot to catch some of the profits rotating out of Lithium Exploration Group (LEXG:OB). We were watching it closely even considered releasing it as a hot penny stock alert to our subscribers. However, shares UTOG failed to rally and fortunately, we held back and the stock never rallied.

Now at the time of this entry, shares of UTOG are up a few cents on what seems to be light volume. Is UTOG dead money ? Or is this the quiet pullback before the rally ? Right now it seems to be tough to tell, but you should still by all means add UTOG to you penny stock list, and here is why. Last week, according to a SEC filing, UTOG did a private placement for $2.5 million. They sold 1 million shares for $2.50, which is right under the year high. Right now the stock is in the $1.80 range. Now while private placements dilute by nature, is the discount in UTOG too large ? Especially since they recently announced a drilling program on the New Miami Property, acquired a 24k acre property in Wyoming, and signed a letter of intent to buy a smaller 11k acre property in Montana.

At this point, even with oil prices attempting to rally, it’s probably just best to watch shares of UTOG and keep an eye on the PR’s and volume. If anything of consequence happens we will be sure to alert you. Remember that following multiple names increases the chance of identifying the next hot penny stock.

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