New Colombia Resources Inc. (OTCMKTS:NEWC) Explodes Into Motion
New Colombia Resources Inc. (OTCMKTS:NEWC) exploded 73% up the charts yesterday, fueled by a boastful PR announcement – but will it manage to retain its elevated position?
Well, volatile as the ticker is, there’s no way to be absolutely 100% sure what its next move will be. However, any due diligence on NEWC reveals that the chances of it continuing its explosive chart climb, or even retaining ground, look pretty slim.
Truth be told, that previous statement should be re-phrased as “any attempt at due diligence”, because the fact of the matter is that currently, due diligence on NEWC is completely impossible. The company’s last financial filing hit the web on May 20, and covered the fist quarter of said year.
Suffice it to say that the red “STOP!” sign stamped on the upper right corner of NEWC‘s OTC markets profile page is well earned – and while none can argue that the numbers in the filing are outdated, they are many other things besides. Just take a look for yourselves:
- Cash & total current assets – $0.5 thousand
- Total Current Liabilities – $1.4 MILLION
- NO REVENUES EVER
- Quarterly Net loss – $360 thousand
If that is not a textbook example of OTC Markets mediocrity, we don’t know what is – and there is no real evidence that things have gotten better for NEWC since that point in time time.
Moreover, considering the company’s habit of issuing notes that convert at discounts of 45%, there is a fair to good chance that the overall situation has actually gotten a lot worse since these numbers were current.
Unfortunately, there’s just no way to be certain either way – which makes committing to NEWC common stock nothing less than a blind gamble at the very best. Investors should take that into account and act accordingly.
