Western Graphite Inc. (OTCBB:WSGP) Crashes After Recovery Attempt

07WSGP_chart.pngYesterday Western Graphite Inc. (OTCBB:WSGP) slumped 21% to a close of $0.59 per share. The stock attempted to recover in price after a devastating series of crashes sent it down from its pumped highs.

We covered WSGP in the past, both before and after the pump bubble burst and dragged many investors down the slippery slope that sent WSGP‘s stock almost 80% down in two weeks. The promoters touted the stock through the usual email touts that we informed about, as well as through landing pages and domains registered for the exclusive purpose of advertising WSGP.

It so happens that the face used to add credibility to the claims of those websites and landing pages was Mr. Tobin Smith of NBT Equities Research. The full promotional materials used in the April – May pump effort for WSGP can still be found at wsgpreport dot com. It just so happens that yesterday Mr. Tobin Smith was fired from the Fox Business Network for ‘boosting’ stocks against monetary compensation, which is against the network’s policies.

Mr. Smith is no stranger to ‘boosting’ stocks through his paid reports that he presents as ‘research reports’, usually setting wildly unrealistic price targets and charting huge potential gains for the stock in focus. The stock highlighted in the media coverage of Mr. Smith’s contract termination is Petrosonic Energy, Inc. (OTCMKTS:PSON) which we underlined as a disaster waiting to happen as early as mid-April.

PSON_fail.pngAnother notable mover in yesterday’s predominantly red OTC market was Lot78, Inc. (OTCMKTS:LOTED) who dropped 28% in a series of recent slumps.

WSGP is currently trading flat in the early session, on heavily faded initial volume.

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