Westmont Resources Inc. (fka WMNS)

[Penny Stock Psychic]

Thats because...wait for it...this company is nothing more than a box job. WMNS is a shell with no significant business operations being used by insiders to line their own pockets by dumping shares on unsuspecting investors.

Any demand for this stock is totally artificial. The demand (rather the appearance of demand) has been created by promoters who have been paid by WMNS insiders to tout this company as a legitimate investment, allowing WMNS insiders to unload their shares into the hype.

Below is an excerpt from an email alert that was sent by a WMNS promoter on 7/20/2010...

SOURCE: http://stockreads.com/Stock-Newsletter-Search.aspx?q=wmns

Potential Bounce Play!!! WMNS.OB Last trade 0.199 Down -31.07%

We believe that there is a potential bounce play for WMNS. On July 15th WMNS closed at 0.45... You do the math...

Well, I did the math and wasnt impressed. On 1/5/2011, WMNS underwent a 1 for 300 REVERSE SPLIT, thus giving the $.199 bounce recommendation a post-split adjusted price of $59.70! The post-split price is currently $.09, a 99.8% difference in price from where the promoter recommended it. If you invested $1,000 on 7/20/2010, your investment would currently be worth $2.

Well, maybe the next promoter did better? Another promoter e-mailed on 11/2/2010. The headline read...

"WMNS - We are just getting started on this Solid play!"

If you invested with this particular newsletter, you incurred another 99% loss as the stock never moved above the post-split adjusted recommendation price of $20.70.

The only individuals making money on this stock are the individuals that are dumping their free-trading paper into the market.

WMNS has a $13 million dollar market capitalization, yet the company appears to be on the verge of bankruptcy. You dont have to be an auditor for Deloitte to figure this one out...

Per the most recent WMNS 10-Q filing (unaudited)

- Oil and gas revenues $ 10,693

- 13. LIQUIDITY AND FINANCIAL CONDITION

A. WORKING CAPITAL

30-Nov-10 31-May-10
Total Current Assets $ 20 $ 1
Total Current Liabilities $ 1,148,197 $ 968,098
Working Capital / (Deficit) $ (1,148,177 ) $ (968,097 )

The working capital deficit is continuing to increase quarterly and is now over $1.1 million. As indicated below, the company has negative cash flow and the loss from operating activities is compounding on an annual basis.

- B. CASH FLOW


For the Six Month Ended
For the Six Month Ended
30-Nov-10 30-Nov-09
OPERATING ACTIVITIES
Net Income / (Loss) $ (205,144 ) $ (138,724 )
Net cash provided by Operating Activities $ (137,833 ) $ (4,545 )
Net cash provided by Financing Activities $ 137,852 $ 6,940
Net cash increase for period $ 20 $ 2,395
Cash at Beginning of Period $ - $ 146
Cash at end of period $ 20 $ 2,541



As more dilutive shares continue to slip their way into the market, it will become increasingly more difficult for the stock to maintain its artificially inflated price and will eventually collapse, making bagholders of those unfortunate enough to fall for this scam.


DISCLOSURE: I am short WMNS.