Pump Campaign for Graphite Corp. (PINK:GRPH) Rages On, Stock Drops
Yesterday busybody pumpers handed out a helping of new promotional emails, advertising the stock of Graphite Corp. (PINK:GRPH). Pumpers were obviously unfazed by the drop of over 7% that GRPH experienced over the last session and kept touting the stock.
Chatter Box Stocks, one of the parties currently touting GRPH came out with a new email alert, telling their subscribers of all the wonderful things that could happen to the company over the next few weeks. The pump contains the usual forward-looking fluff about future promise and potential and very little in the way of previous hard facts and operational results.
GRPH is a mineral exploration company, riding the sweetest and hottest among new mineral trends – graphite extraction. The company is backing up its extended pump campaign that has been running with short interruptions since February 10, pumpers disclosing compensations ranging from $2 thousand to $60 thousand – the amount Chatter Box Stocks disclosed in their email disclaimer. The stream of promo emails is backed up by PR by the company, detailing at great length every preliminary finding and every bit of promising news.
Once traders turn their inquiring eye to the company’s filings, things may not look so promising to some. Excluding an 8-K detailing stock purchase options for one of GRPH‘s advisory members, the most current official filing of the company that is not PR but actual official information, is a quarterly report for the quarter ended September 2012. The report contains the following numbers:
- $310 thousand in cash
- $0 revenues since inception in 2007
- $143 thousand quarterly and $1.5 million cumulative net loss since inception
Promoters are now inviting traders to buy shares of a company that has not managed to turn revenue in over 5 years of operation, during which it changed names twice. Both the pump mails and the press releases contain promises of future success and no actual results. The company was pumped before, and the pumps did very little to help the stock move up. After pumpers announced that GRPH received a $6.00 price projection from a “Wall Street veteran” in late November, the stock took a nose dive in early December, which repeated in January, bringing it down to around its current levels after the November highs of nearly $0.90 per share.
Chatter Box Stocks ran pumps that ended in complete disaster very recently. On February 7 they promoted Primco Management, Inc. (OTC:PMCM) and we covered that one as well. The promo job was very short lived and ended in a quick crash that left PMCM currently 80% down from where they were at the time of the pump.
Investors are advised to do their own research and due diligence and never trade on paid recommendations that land in their email inboxes.
