USA Graphite Inc (OTC:USGT) Pulls Back
USA Graphite Inc (OTC:USGT) has proved that a company doesn’t need assets, revenues or any kind of proof it can make money to get to a market valuation above $100 million. All it needs is a massive pump campaign.
The problem with pumps is that they eventually crash and leave believers holding the bags. Right now the question is has that time come for USGT. Yesterday it closed down 5.7% at $0.894 on 2.3 million shares. Pre-market trading has been volatile and it’s not clear whether the USGT pump is done.
Stock Castle and the other newsletters behind the pump job are calling yesterday’s performance “healthy price action.” They are also saying USGT will resume its journey up. While that’s a possibility, it may very well be the start of the end for USGT.
The company could back up the pumpers by issuing another optimistic press release. It has been silent since Jan. 4. The shadier part of the USGT pump is still active too. We have received new spam emails touting USGT.
Graphite and graphene may indeed be an integral part of future technological advances, but traders should keep in mind that at this time USGT hasn’t mined any graphite. So far the only thing the company has to offer is shares of common stock.
Since the pump began in December, we have warned our readers plenty of times of what is the reason for USGT to go up. Pump jobs don’t last forever and you don’t want to get caught up in one.