USA Graphite Inc (OTC:USGT) Soared, Despite Danger

We’re about a month in the USA Graphite Inc (OTC:USGT) pump and it’s about 90% up from pre-promotional levels. Those who are playing it right may have made some money, but USGT is still a pump job, and those that treat it like a solid investment are in danger.

On Friday, USGT closed up 6.88% at $0.855 per share on 2.3 million shares. After the close USGT issued yet another optimistic, but largely uninformative press release. Supposedly, the company is “selecting” some project around the west coast of Canada.

As with the previous acquisitions of USGT, there are a number of issues around this one. For starters, the company has no money to speak of. It hasn’t announced any financing, either, and if USGT gets financing it will be dilutive to the current shareholders. Last, but not least, there is no proof the company stands to make a dime from any of the projects.

Again, for those who are playing USGT knowing it’s a pump job, there have been opportunities to make a profit, but with the ongoing spam and open paid pump campaigns, there are probably some people who think they are making a long term investment.

There were some who bought the idea that the previous pump of the Stock Castle group had a great future ahead. Those that did lost a lot of money on Premier Brands Inc (OTC:BRND) f.k.a. Tracksoft Systems Inc – it’s now down about 85% from the peak of the pump.

We urge our readers to be careful. Do your research instead of blindly trusting pumpers and spam emails promising huge profits in no time.