Should You Be Worried About Northumberland Resources Inc (OTCMKTS:NHUR)?
After the truly outstanding run the Northumberland Resources Inc (OTCMKTS:NHUR) displayed (more than 600% in just a couple of months), the ticker is starting to hesitate a bit. On May 20, it reached its 52-week high of $1.81 per share, but just a couple of days later, after some disappointing sessions and the issuance of the new quarterly report, it was down below the $1 mark. Still, it did manage to recover somewhat and it closed yesterday’s session at $1.20, which is quite respectable for a mineral exploration penny stock. Do they deserve that price, though?
Well, if you look at the financial side of things only, you will see that they are some way off the mark. At $1.20 per share, NHUR‘s market value comes in at more than $75 million. When you open their latest financial report, you will see that total assets amount to less that $1 million of which only $106 thousand are qualified as current. Still, for some of you, this might be quite a shallow analysis and you might argue that NHUR‘s potential lies beyond the figures in the 10-Q.
Sure enough, if you only rely on the press releases, things are looking good. On May 6 they announced that they are securing more money that will be used for the financing of the drilling operations. Then, a week later, they said that they’re starting work on a new well and yesterday, just hours before trading started, they came on the news once again and said that they are about to start drilling at yet another property in Kansas. With those in mind, you will think that the rather disappointing financials are not really indicative of the future and that NHUR really is a good investment option. We, however, reckon that some closer inspection is still a good call and so that’s exactly what we did.
Take the press release from May 13 about the drilling at the Larrison 5 property. In there we read that NHUR have sold around 30% of the working interest to their partner and field operator Lasso Energy LLC. That is no surprise since, as we saw in the financial statement, NHUR aren’t exactly flush with cash and a partnership with another company will definitely speed things up. The PR also says that Lasso will invest $140 thousand in the wells in order to upgrade the equipment and make life easier. Naturally enough, we were curious to see who stands behind Lasso Energy, but unfortunately, the only thing that we could find is this profile at the Federal Motor Carrier Safety Administration’s website where we see that Lasso Energy LLC is a carrier company with a P. O. box as a mailing address, one driver and one vehicle. For those of you who are ready to argue that this information might not be up-to-date, we should point out that because of the lack of a company website, there’s absolutely no way to disprove it.
But let’s get back to NHUR and see what they have. If you are a frequent reader of our articles, you will probably know that we like to check on the companies’ offices and see where they perform their operations from. Sure enough, we did the same thing with NHUR and we found that some of the suites located in the nice building quoted as NHUR‘s HQ (in the SEC filings, at least) are also offered as virtual offices. That’s not the only address associated with NHUR, though. For some reason the contact page of their website displays 7230 Indian Creek Lane, Ste 201 Las Vegas, Nevada 89149 as the corporate HQ. This address, down to the number of the suite, is also quoted as the principal offices of National Graphite Corp (OTCMKTS:NGRC) and Tiger Oil and Energy Inc (OTCMKTS:TGRO).
The connections between the three companies begin to grow stronger when you look for some more information on their websites and you find that the domains owned by NHUR, NGRC and TGRO were registered by one and the same entity – NC Inc. MANITO GROUP . Coincidence? We think not.
And there’s yet another thing to worry about. As we mentioned in our previous article, there is quite a massive pump job running for NHUR at the moment. An entity called PubCapital Inc paid Billionaire Stocks as much as $3 million for an awareness campaign. Currently, the stock is touted only through the emails and by some absurdly optimistic users around the message boards, but we reckon that with a budget this big, we might see either a hard-mailer campaign, or a special website dedicated to pumping the ticker to kingdom come. We’ll be keeping an eye on developments around NHUR, but in the meantime, you should make sure to consider all the facts above and perform the necessary due diligence before making any quick decisions.