Pumpers Crush The Remains Of American Graphite Technologies Inc (OTCBB:AGIN)

6AGIN.pngDo you remember when American Graphite Technologies Inc (OTCBB:AGIN)’s stock was traded at over $1.20 per share? We do. It was back in March and someone decided that it will be a brilliant idea to initiate a massive promotional campaign. Emails from pumpers of all shapes and sizes flew around and there was even a hard-mailer brochure that explained about how this little Las Vegas-based penny stock venture is going to make anything from cell phone batteries to bullet proof vests. It was full of colorful pictures and pretty diagrams and it gave AGIN a 6-12 month price target of $2.37 per share and a 36 month target of $50.75 per share.

We’ve absolutely no idea how they managed to come up with this sort of projections but the fact remains that yesterday, three and a half months and around sixty promotional emails later, the ticker closed at $0.475. Today, just an hour into the session it’s another 10% down and the increased volume suggests that they could drop even further. But what are the odds of AGIN surprising everyone and actually making the $2 per share target in the next eight months?

Let’s put it mildly and say that we’re not ready to bet on AGIN‘s success. As you can see, the price has been on a steady downward trend and we’re struggling to see how this can ever be stopped. Promoters have tried to reverse the tides with a couple of campaigns but failed miserably giving selling opportunities to people who owned a large stake in AGIN. As we wrote in an article from March there’s no shortage of such people and even though the price has plummeted over the last couple of months, there’s still room for them to make some quick and easy money since they paid exactly $0 for the shares.

Some of you might be arguing right now that the real potential of a company lies not in shady stock transactions, but in the operations and we’re ready to agree with you. The only problem is, AGIN will have a hard time convincing us that they’re going to make it. Sure, some press release have been coming out every now and then (suspiciously well-synchronized with the pumpers’ emails) and they all talk about the billion-dollar industry that AGIN are targeting, but we have yet to see even a sign of a deadline for revenue generation or something that could boost investors’ confidence.

The only thing that might look even remotely positive about them is the lack of liabilities in their financial statement, but it’s a bit pointless when you have in mind that there’s no revenues. And the more we look into the company, the more we start to doubt that they will ever dig some graphite or graphene out of the ground. You might accuse us of being overly skeptical about the whole thing but let’s say that we have our reasons.

NECA.pngTake the people (or rather the person) running AGIN for example. His name is Rick Walchuk and he is listed as the CEO, CFO and President. That’s quite a lot of tasks for a single person, but when you dig a bit further, you will see that he has also serves the CEO of two other small cap ventures – New America Energy Corp (OTCBB:NECA) and Viosolar Inc (OTCMKTS:VIOSF) and that’s even more responsibilities for a single person. Predictably, neither NECA, nor VIOSF have impressive financial statements and the only thing NECA can “boast” about is a long history of pumps. As you can see from the chart on the right, the results are pretty devastating. Having all the facts above in mind, we’re struggling to see how AGIN‘s performance will be different in the long run.

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