'If you are having trouble finding information on MMTE assets, that is because they have NONE.' While this might be only a single opinion of a trader in iHub, it has gathered a lot of followers recently, who call Mammoth Energy Grp (PINK:MMTE, MMTE message board) a 'pinky scam company'.
A quick look at the company's profile indicates that there might really be a grain of truth in what these investors think.
On the one hand, MMTE managers have failed to provide any updates for nine weeks now. No contracts have been signed, no mines have been developed and no financing has been secured. In brief, MMTE appears to be staying idle, waiting for the big breakthrough to come by itself. Contrary to that, the trade with MMTE stock is more intensive than ever as what we've got here is:
a 900% cumulative increase in the price of MMTE stock
an average daily trading volume of 100 million MMTE shares.
Both indicators cover the period from Jan. 3 to Feb. 14, 2011.
Most obviously, a massive promotional campaign lies at the root of the gigantic surge - 6 promotions worth a total of $37 thousand, launched in the first two weeks of February. As it seems, the facts speak for themselves. Not to mention the lack of cash and any other assets whatsoever, or the nine-month net loss of $65K.
Seen from a different perspective, however, the current pumping of MMTE stock might actually raise enough capital, which in turn might allow the company to research new strategic locations. Provided they turn out to be rich in mining energy reserves, the company's future will definitely change for the better.
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Yet, the present picture is clear. The promotional activities will continue as long as MMTE stock has the potential to grow. Afterwards, the free-fall will deal a blow to the hopes of those investors who fail to get rid of their MMTE shares on time.
AI
