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What’s Wrong With Sabine Oil & Gas Corp (OTCMKTS:SOGC)?

It is evident that the share price of Sabine Oil & Gas Corp (OTCMKTS:SOGC) is witnessing a tough period lately. The stock price hovered around above 20 cents per share at the start of the year and surged higher to touch the 30 cent mark in February. However, the momentum faded and the stock price started to decline in the first week of March that resulted in SOGC declining to $0.0433.

The momentum

The share price of Sabine Oil & Gas declined close to 84% in last one month. After forming a bottom, the company share price surged 177%in a single trading session for no evident reason. The sharp rise was not sustainable and the stock corrected in the next trading session. Since, then the ticker has been hovering around the 10 cent mark with average daily volumes.

The financials

Sabine Oil & Gas Corp (OTCMKTS:SOGC) filed annual report in the week, which will likely direct the stock momentum in the coming days. For the period ended December 31, 2014, the company had cash of $3.25 million. The current assets came at $291 million and current liabilities came at $2.39 billion. The annual revenue was $462 million while annual net loss came at $326 million.

The takeaway

Going by the numbers, they appear quite impressive given they are of an OTC traded firm. However, it cannot be denied that the current liabilities are massive against the current assets. The company annual net loss is also something that cannot be ignored, especially when the company posted $10 million profit last year. The financial numbers indicate that after sharp decline of 19% posted after the results, the ticker can further go down on the charts in coming days.

In last trading session, Sabine Oil & Gas stock price erased a small part of losses made on the previous day. The stock price surged 1.18% to close at $0.0860.

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