Suburban Minerals Corp. (OTCMKTS:SUBB) Pushed Up By New Round of Pumps

SUBBchart.pngEven after undergoing a name and ticker change back in March 2013 Suburban Minerals Corp. (OTCMKTS:SUBB) remained completely ignored by the market for the rest of the year. It began active trading only after the start of the new year and even then traded volume began to rise in earnest after January 7.

That day marked two significant events for SUBB. First they announced a letter of intent to acquire a producing diamond mine located in the Central African Republic and second – the paid pump began. Since then we have intercepted more than a hundred distinct email alerts touting the stock and according to our database the total sum paid for them has reached more than $200 000.

If you take a look at SUBB‘s chart performance though you will see that despite the massive pump activity the stock has been less than consistent. On a couple of occasions it has wiped the gains accrued over three sessions in just a single one. As of yesterday SUBB has once again been climbing for three consecutive days so it will be interesting to see if the pattern will repeat itself during today’s trading. 

As we said yesterday SUBB closed 24% in the green at $0.248 on a record volume of 3.3 million shares. The more than 10 times increase in volume compared to the previous session came after a PR announcement was made by the company. It revealed that SUBB have signed an acquisition agreement for the mine and they expect to complete it by the end of February. 

The PR gave the pumpers something to talk about spurring them into action once again. The biggest compensation of $25 000 was taken by Damn Good Penny Picks and its affiliate Penny Stock Newsletters while the various other pumpers received sums ranging from $1500 to $7500.

But the ongoing paid promotion is certainly not the only red flag around SUBB. On January 27 they filed the annual report for the fiscal year ending November 2013 and it contained some extremely grim figures:

  • $331 cash and current assets !!!
  • $737 thousand current liabilities
  • ZERO revenues
  • $17 thousand net loss
  • $11 million accumulated deficit

Throughout the period covered by the report $3000 in convertible debentures were converted into 30 million shares or each one was priced at just $0.0001. And with SUBB being actively traded for less than a month the owners of these extremely cheap shares should be quite happy to take their profits at the current pump-inflated prices.

GFOXchart2.pngThe risks around the stock of the company demand some careful consideration before any trades are attempted. If you still want to invest in them be sure to do your own due diligence and decide on appropriate time horizons in order to avoid any unnecessary losses. 

Yesterday the pump for Gray Fox Petroleum Corp. (OTCBB:GFOX) managed to recover at least some of its value after it dropped by close to a full dollar during the previous two sessions. When the closing bell rang the stock was sitting 10% in the green at $1.65 per share.

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