Viking Minerals, Inc. (OTCMKTS:VKML):Penny StockCrowd.com Promises A Good Run

Viking Minerals, Inc. (OTCMKTS:VKML) is a stock that is more successful the more it drops. There’s nothing like a fresh dip into double-zero price to reawaken interest, and VKML was quick to answer with a sharp recovery. But the active buying and price spikes pose question as the ticker grew nearly five times. VKML added a little more than 10% at the end of last week, awaiting new trading at $0.021.

The main reason behind the very successful past two days is a paid promotion coming from PennyStockCrowd.com for a $10,000 compensation. The main attraction is the ability of VKML to rise sharply out of temporary bottoms. But what the pumpers fail to mention is that this has happened in the past, and usually followed by another retreat. Also, the pumpers claim the run may continue if the stock breaks through $0.02, which it has easily done.

The May 23rd email coincides with a press release on the company’s readiness to acquire a large and potentially lucrative coal resource plot in the North-Central part of the USA. VKML plans to invest in short-term coal, copper and other metals project, thus also gaining from trading mineral rights. The financial reports show how readily VKML could afford this expansion:

• Zero cash

• $66,378 current liabilities

• Zero revenues

• $325,405 net quarterly loss, more than $30 million loss since 2006

As it seems, the company is digging itself into a hole, and it’s not to mine anything precious. But despite the weaknesses, the run may continue, given that there has been only one email so far for this stock, and more noise could bring more investors in.

Promising a bright mining future is a common trick for penny stock companies. Some bet on the success of graphite, others quickly changed their business description to gold mining on rising commodity prices.

Consider currently promoted Trulan Resources Inc. (OTCMKTS:TRLR). It got boosted by whooping 88 emails for a total budget of $167,500. But this did not lead to any significant runs, and instead brought down the stock 90%, from 10 cents to one on profit-taking. The company also had very little to show in terms of real potential to acquire gold.

When it comes to mineral claims, it is a big red flag- such companies rarely fare well in the longer term, but the industry provides serious-sounding promises and rationales. So it is best to stay away from VKML and similar stocks unless you are prepared to absorb some losses.