Viking Minerals, Inc. (OTCMKTS:VKML) Gains Against the General Trend
If you want the rich spoils of a stock pillage, Viking Minerals, Inc. (OTCMKTS:VKML) has been showing the appropriate viking aggression. But despite the positions it grabbed, the ticker deserves extra attention, as it now faces the challenge of keeping those gains. In the past week, VKLM attracted enough buyers to extract itself from the sub-penny positions, and increase its value 12 times.
On Monday, VKLM grew by more than 51% to $0.125, on dollar volumes above $1.97 million. What is even stranger is that this ticker is no stranger to promotions and PR, but the latest rise comes in without any overt campaign.
The trigger for VKML was the March 5th press release and 8-K filing for a change of directors. That was the first robust day of buying, followed by a somehow stagnant period, and then the current multiplication of the stock price. The reason for this may be attributed to speculative buying aimed at triggering a response with a larger mass of investors, or the already central expectation around every rapid stock rise: that the company in question at least mulls an entrance into the legal marijuana market.
Unfortunately, the rush to update the financial filings did not show anything better for the company. VKLM remains a company with zero cash and assets, though the picture has changed for the worse, with:
- $105,000 total current liabilities, up from $64,000 in 2012
- Still zero revenues
- $15,000 quarterly net loss for the last quarter of 2013
We already know that investors rarely notice those drawbacks if there is enough proof that a future development is in progress. Other financially weak companies are faring well, with amazing stock trends, as they show indications they are serious about their new business models. So far, VKML has not given any proof of this sort.
VKML is far from the first mining company to switch tracks. The example of Discovery Minerals Ltd. (OTCMKTS:DSCR) is remarkable, though all of the climb happened in the risky range below the penny levels. Still, DSCR is up by more than 800% to reach $0.0041.
Resource Ventures, Inc. (OTCMKTS:REVI) also moved closer to hemp, as it easily appropriated its graphic design business to serve the needs of producers of various cannabis products. REVI so far manages to keep up the levels of $0.03 with some gentle sliding, but no big shakedowns.
For VKML, it’s a wait as the week progresses. The weak opening of the pot stock positions on Monday will clash again the fame of the new CEO, Mr. Robert Coleridge, a powerful and experienced figure, but most importantly- also the head of Indie Growers Association and Indie Growers Union.
The only problem is that VKML is just right for profit-taking, and the beautiful graph may soon be broken by slabs of red. If you like the potential of this company, make sure you can afford the setbacks as the price returns to a more normalized position.