Investors Haven’t Forgotten Santo Mining Corp (OTCMKTS:SANP)
Exactly three hundred and sixty-five days ago, Santo Mining Corp (OTCMKTS:SANP) hit the absolute bottom of $0.0001 per share for the first time and, we’re not going to beat about the bush here, there’s plenty of things to suggest that this is where the stock belongs.
Back in 2012 it was targeted by the paid pumpers. The compensations were in the six-figure range and the ticker was sitting comfortably above the $1 per share mark. At one point, however, the company executed a forward split which made some investors think twice. Then, the pumpers left, taking with them all the absurd promises of wealth and fortune.
Predictably, the stock crumbled, but it wasn’t only the pumpers who are responsible for this. The company also failed to deliver on the promises they made when the pump was still on. A point driven home by the report for the three months ended April 2014:
- cash: $42 thousand
- total assets: $239 thousand
- total liabilities: $1.1 million
- NO revenue
- quarterly net loss: $727 thousand
After those dismal figures SANP simply decided that they couldn’t be bothered staying current with their reporting obligations which means that plenty of 10-Q’s are now missing. There have been a few filings over the last fifteen months, though.
Thanks to those filings, shareholders learned that the number of authorized shares has been upped to 5 billion and they also realized last week that the O/S count has grown from about 422 million in June 2014 all the way to more than 1.2 billion right now.
In a word, based on the information outlined above, SANP doesn’t look like the best investment option out there. Plenty of people would disagree, though.
In April, SANP entered into a share exchange agreement with an entity called Cathay Cigars and it’s now saying that it will sell cigars in China. The previous business plan of looking for gold in the Dominican Republic has been ditched. There’s a new management team as well and they have put up some colorful and longer-than-strictly-necessary corporate presentations in an attempt to convince everybody that this is the right direction for SANP.
Yesterday, they published a press release (which, curiously enough only appeared at iHub) and said that the reverse split that was announced by the previous management team more than a year ago has been canceled. They also said that the missing reports will be filed within the next few months.
Apparently, people are ready to trust the company once again. The ticker has been shuffling up over the last few weeks and although it slipped and dropped to $0.0004 yesterday, it did it on a significant volume, and it did it after hitting an intraday high of $0.0008 for the first time in a while.
The fact that other people are willing to put their money on the line doesn’t mean, however, that you should follow the heard. You should do your own risk assessment and you should reach your own informed decision.
An informed decision means that you should keep in mind the fact that Franjose Yglesias, SANP‘s new CEO, has been involved with at least two other penny stock companies – California Grapes (OTCMKTS:CAGR) and Pleasant Kids Inc (OTCMKTS:PLKD). Neither of these enterprises is doing too well at the moment.
