MineralRite Corporation (PINK:RITE) Crashes Amid Heavy Pumping
Yesterday there were over two dozen mail pumps sent out by a number of promoters, all touting MineralRite Corporation (PINK:RITE) against varying compensation. Despite the efforts of the pumpers, the stock trundled downhill to end the day 22% down.
The pumps touted a press release by the company that conveniently cropped up along with the pumps, even though it concerned an event that took place back in March, with RITE acquiring another company against 2 million shares and $100 thousand in cash.
The timing for a pump job was right as RITE did a reverse split of its stock at 1-for-50 in August 2012. Once the shares have been brought down to more reasonable numbers by the reverse split, the company went to issue 40 million new shares to various entities, with RITE CEO Guy Peckham bagging over a quarter of those, or 11.5 million. Hilariously, those shares were issued for ‘services performed, or to be performed’. At 11.5 million shares, it looks like the better part of those was payment for future work, as Mr. Peckham became CEO of the company in August 2012.
RITE‘s financials have not exactly improved since we last covered the company. Here is what the company reported as of December 2012:
- $9 thousand in cash
- $608 thousand in current liabilities
- $441 in yearly net loss, $6.2 million in accumulated deficit
The promoters who pushed the RITE pump yesterday offered other failing picks in the past. Psycho Penny Stocks pumped Massive Dynamics, Inc. (PINK:MSSD) on April 8 and the stock has been tumbling downhill ever since, to arrive at its last close about 55% below the pump spike.
Traders are advised to be extra careful with stocks targeted by paid pumps as those involve many risks and often lead to day-zero nosedives which was also the case with RITE yesterday.