Sanborn Resources Ltd (OTCBB:SANB) Moves Further Up

It has been a great run so far. Sanborn Resources Ltd (OTCBB:SANB) hasn’t registered a red session ever since the pump for them started and the figures, while not dramatic, are really looking good. Monday ended with 15% gains on a volume of 2.1 million shares, Tuesday’s bell rang when the ticker was around 18% above the previous close and the volume amounted to 1.1 million. Then during Wednesday and Thursday we saw some slowing down, but you’re probably thinking right now that as long as the price moves up, there’s nothing to worry about. We’re not so sure about that.

It wouldn’t have been that much of a problem if the shares were moving under their own steam but there seems to be people who want to give the ticker a “helping” hand. As we already mentioned, an article on a website called Financier Times went live during the weekend and while the things written in it sound a bit far-fetched, it was apparently good enough to get investors to jump in on the hype. Currently, the publishing date seems to be changed to July 9, but you shouldn’t be fooled by that since the same strategy was employed when Financier Times were pumping Northumberland Resources Inc (OTCMKTS:NHUR) and just like back then, the coverage on the aforementioned website wasn’t the only weapon in the promoters’ arsenal. If you have read our articles on NHUR, you will know that quite a lot of users were dispatched around message boards in order to create some buzz around the ticker and the case of SANB is no different. Currently the forums are flooded by people who post links and information that is based on absolutely no research whatsoever.

What is interesting around SANB‘s campaign is that there seems to be very little mailing activity. The only alert that we received in fact, was sent by Penny Stock Forever (PSF) around 3PM yesterday and according to the disclaimer, they have not received any compensation for their efforts. They say that they just want to provide their subscribers with a winning pick that could yield quite a lot of money. We can see a couple of problems here.

The first one is their track record. The last time PSF sent us a free alert for a ticker with great potential, it was Biozoom Inc (OTCMKTS:BIZM). The latest email from them is dated June 18 – exactly one week before the SEC stepped in and put an abrupt end to the promotional fiasco. Will the same thing happen to SANB as well? We’ll have to wait and see, but in the meantime, we can have a look at the second problem we have with Penny Stock Forever’s promises of wealth and fortune – the doubts around SANB‘s long-term success.

Let’s start with the basics. As we already mentioned in our previous article, they were trading pieces of art until not that long ago, which means that we don’t really have an idea as to what their financial situation is since the latest quarterly report covers the period before the Peruvian gold mines.

Speaking of which, before the acquisition took place, the properties belonged to another mining penny stock venture called Rae Wallace Mining, Co. (OTCMKTS:RAEW) and SANB are insistent that they are absolutely packed full of gold. That begs the question: “If the mines really are so lucrative, than why are RAEW willing to give them away for just $700 thousand?”. We’ll probably never find the answer to that, but SANB‘s shareholders will probably keep their fingers crossed that their company doesn’t end up like RAEW – with no trading volume and no movement in the price. Who is here to stop that from happening?

Well, it’s the experienced management team and, more specifically the CEO, Mr. James Davidson. We already mentioned in our previous article that there have been quite a lot of people who are not terribly happy with him. As for the other two mining penny stock ventures that he steers – California Gold Corp (OTCMKTS:CLGL) and Valor Gold Corp (OTCBB:VGLD) – well, they have nothing more to show but poor financial statements and rich promotional history. Will it be third time lucky for Mr. Davidson is yet to be seen, but we reckon that the current $3 million promotion makes a potential investment very risky. That is why we would advise you to tread extremely carefully.