Sanborn Resources, Ltd. (OTCBB:SANB) Moves Up Even Faster on David Cohen Email

Sanborn Resources, Ltd. (OTCBB:SANB) had a good day on Wednesday, adding to the upward streak. Now the graph has made a curious W from the M a few days ago, and we are waiting to see where the movement will take this mining company. Now SANB stands at 60 cents, after adding more than 19% on Wednesday. SANB0801.png

There are many red flags surrounding this mining company, starting with the financials:

  • $2,000 cash
  • $69,000 total current liabilities
  • $79,000 total revenues
  • $136,000 net loss

Due to the continuing net loss, the latest financial report mentions a concern for the ability of SANB to continue its operations. But this is not unusual for penny stock companies in the development stage to mention such concerns. For a while, SANB may be burning cash in a bid to achieve gold mining in Peru. So far, the website is semi-operational, serving more as an advertisement than a true source of information. Previously, SANB registered itself as an art dealer, under the name of Universal Tech Corp.CGLD0801.png

At 60 cents, if SANB follows the old logic of its graph, there may be a retreat, especially if the end of the week approaches and profit taking takes off again. But the past two days went with amazing buying volumes, upward of $1.7 million.

At 60 cents, SANB is reasonably priced for an OTCBB tier stock, although such a price does not command speculative attention on its own. Currently active at a close price range is Petrosonic Energy, Inc. (OTCMKTS:PSON), a heavily promoted ticker that slid somehow in the past month, and now is working on recovering lost ground.

With a new month, we may expect a change in promotions. The total budget for emails for SANB was $15,000, which may mean the campaign so far has ran its course. But if the strong streak holds, it is possible that another pumper will be interested in SANB.

Currently, there are few gold and mining stocks in active promotion, as was the case a few months ago when gold received the spotlight. The sudden appearance of SANB recalls also that of Colorado Gold Mines, Inc. (OTCMKTS:CGLD), a much-promoted pink sheet without a solid core. The ticker started off promising at 60 cents, but went on a long and sometimes steep slide, ending up in the double-zero range.

So if SANB looks solid now, keep in mind that the stock price may lose its support. It is best to avoid quick wonders, unless you can also afford a scenario like CGLD, which lost more than 90% of its value.

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