By Martin Tsvetkov
Apr 27, 2011
Huge Selloff Pushes Mammoth Energy Group Inc (PINK:MMTE) Stock Down 27%
The controversial performance of Mammoth Energy Group Inc (PINK:MMTE) can hardly come as a complete surprise to investors anymore. Yesterday, MMTE stock lost more than 27% of its value, closing at $0.0021 per share. While the slump was big, the spike in volume was even bigger as 227 million shares had changed hands by the end of the session, way over the average volume of 68 million.
MMTE has become notorious for its closed-door policy. The last time any corporate updates popped up was more than three weeks ago. Contrary to popular belief, MMTE stock does not appear to be under any promotional campaigns at present, either. This circumstance pretty much explains the negative trend MMTE has been following for three consecutive sessions now.
Mammoth Energy Group Inc describes itself as a lithium and alternative energy mining company, focused on acquiring properties that have a potential to be rich in lithium deposits. The company's latest priority seems to be a Chile-based mining location. In this respect, MMTE announced earlier today that it intended to acquire a higher interest in the property. Not long ago, MMTE started negotiations to obtain partial ownership in the property. So far, the initial transaction has not been brought to an end.
Since the mining property mentioned above is considered 'a world class lithium asset', MMTE's intention to get a grip on it is justifiable. However, the company has remained evasive about how it is going to finance the deal. When it published its annual 2010 report 12 days ago, the overall picture was far from rosy, namely:
•zero assets;
•$4K in accounts payable;
•completely exhausted authorized stock;
•zero revenue and an annual loss of $99 thousand.
Given the dreadful financial health of MMTE, a prospective change in the company's authorized stock is a possibility that must not be ruled out. Or, alternatively, promoters will embrace one of their favourites again, pumping MMTE stock as high as it can possibly get.
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Average Reader Price Target For MMTE:
0.0042
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$0.0042
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