The Stock Promotions For US Tungsten Corp

The stock promotions for US Tungsten Corp. that started on Feb 9 seem to have finally coughed, spat and come to a halt. Yesterday USTU dropped over 16%, losing 11 cents on unprecedented volume of nearly 1.2 million shared traded.

The company was first promoted on February 9 for a compensation of $35 thousand. Since then other pumpers hopped on the bandwagon, touting USTU and the hot sector the company strives to operate in. The last promotion for the stock ticked in only yesterday, curiously after the trading session when USTU had already dropped. Promoters Penny Stock Prophet again disclosed $35 thousand received to advertise the stock.

USTU has not generated any revenues since inception in 2007 and is an exploration stage enterprise that is looking to stake out and develop its land claims, looking for tungsten deposits. The company also announced securing a loan of $1 million that it intends to use to develop its claims and finance operations. In 2012 USTU also obtained an option to acquire full interest in mineral claims in Montana, in a deal detailing total cash payments of $1 million, in deferred growing installments over each successive year.

To the company's credit, they have filed very comprehensive reports and have updated shareholders with the full details around their various acquisitions and contractual payments required. The recent cancellation of 123 million shares by USTU's President may come as a bit of a surprising move, but USTU will need to issue a fair amount of new shares to cover its loan and the loan comes with warrants for the purchase of 2 additional shares for each of the 1 million dollars.

Despite the positive PR and the secured line of credit, USTU remains an exploration stage company that has not proven that it can generate revenue and cannot as of yet guarantee that its land claims will yield significant tungsten deposits.

HKTU_fail.pngThe promoters at Penny Stock Prophet have a track record of promotions that turned quite sour once the promotions stopped, so this could also serve as a bit of a red light for traders. They touted Hokutou Holdings Int, Inc. only a couple of days ago, after other pumpers have had their way with the company and left it a smoldering ruin after pumping started in early February. Despite the promotion, HKTU closed another 16% down yesterday.

Traders are advised to be careful with promoted penny stocks as they are a hugely volatile market and the enticing future possibilities they offer often end up in disappointment.

Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Tungsten News & Tungsten Prices, WML Version: http://m.chinatungsten.com

 

• < Prev
• Next >