Sanborn Resources Ltd (OTCBB:SANB) Slips, Emails Come To The Rescue
David Cohen a/k/a Research Driven Investor (who received $15,000) started touting Sanborn Resources Ltd (OTCBB:SANB) exactly one week ago. The first alert that we managed to intercept from him arrived in our inbox just seven minutes after the start of July 29’s trading session and just to make sure that his subscribers don’t miss the memo, he sent out a total of six more emails in which he explains how great a trade SANB could turn out to be. The results? Well, they’re quite good. The ticker registered four green sessions in a row and within that time frame, it managed to jump from $0.39 all the way up to $0.67 which, you would agree is a respectable performance especially considering the lack of any press releases.
Naturally enough, Mr. Cohen had to brag about his glorious achievement and he did it on Thursday when he sent us an email in which he said that SANB‘s value has doubled since he sent out his first alert. More interestingly however, he hinted that he won’t be touting SANB anymore and if you check out our article from Friday, you will see that we weren’t sure if the ticker will perform just as well in the absence of the pumpers. Sure enough, it didn’t. SANB opened Friday’s session at around $0.73, it remained relatively steady for some time, but then, around 2:00 PM, it started sliding and when the closing bell went off, it was standing around 4% below its previous value.
Hardly the most tragic performance ever, but it would still appear that the people who have spent $3 million for the promotional campaign are not quite happy with it, which is probably why they called Billionaire Stocks to come up with an email. The pumpers woke up early today and sent out their alert at around 5:30 AM.
What does the email say? Nothing unusual. It talks about the “huge land package” that SANB own and they say that it was originally put together by Newmont Mining Corp (NYSE:NEM). We can’t find any proof that this is indeed the case, but if it is, then the logical question is: “Why have NEM given up on exploring the supposedly prolific mines?”. We’ll probably never know.
Then, Billionaire Stocks continue by saying that SANB is led by an industry rock star, Mr. James Dale Davidson and they have also pasted a screenshot of his Forbes profile. If you take a look at some of our previous articles, however, you will see that not all people perceive Mr. Davidson as a rock start with decades of experience behind his back. In fact, he does seem to be a founder of a company called Agora Publishing, Inc, an entity that has often been criticized for involvement in penny stock promotions.
The people who wrote the email, however, don’t seem too concern about that but, then again, that’s somewhat understandable since pumping small cap ventures is what they do for a living as well. That said, they don’t seem to be very good at it. They finish of their alert by explaining to us why we should all care about SANB. Apparently, Billionaire Stocks’ glorious track record is enough of a reason to get us all wound up.
They conveniently fail to mention which was “their previous pick” but they do include a chart which spans from March to around mid-May showing a rather amazing stock performance. This begs the question: “If they are so proud of their track record, why are they keeping quiet about the name of the featured company?”. When we first checked the emails, we were also wondering why would the chart depict only the price movement between March and May. The answer couldn’t have been simpler.
Billionaire Stocks’ previous pick was in fact Northumberland Resources Inc (OTCMKTS:NHUR) and the real chart that you need is the one on the right. If you take a close look at it, you will see that while all the pumping efforts did manage to push NHUR all the way up to $1.81 in May, it all came crashing down really soon after that, which means that currently the ticker is more than 80% below the heights.
Billionaire Stocks won’t tell you all these things, but at least they are required to disclose how much they have been paid for their efforts. In case you haven’t heard, the total promotional budget is $3 million, which is exactly the same as the promotional budget for NHUR. The pump is carried by the same exact people which all leads us to believe that the outcome will also be pretty much identical. Looking at today’s performance (just an hour and a half into the session, SANB is around 30% below yesterday’s close), the crash might come sooner than expected.