007 Stock Chat are Giving TEXAS WYOMING DRILLING (PINK:TWDL) a Run for their Money
There are thousands of small cap companies that are on the verge of becoming extremely rich just by digging a hole in the ground. Sounds unlikely? Yes, we agree, but that doesn’t stop promotional newsletters from flooding your inbox with emails for all sorts of companies that are bound to find oil, natural gas, gold, silver, platinum, palladium, rare earths, unobtanium and cryptonite (OK, we might have made up the unobtanium and cryptonite bit). The pumpers always say the resources in question are going to be dug out really soon which means that, if you play your cards right, there is a huge profit waiting for you just around the corner. Today’s spotlight is shone on TEXAS WYOMING DRILLING (PINK:TWDL)… again.
As you have probably guessed it by now, TWDL is a company that specializes in the mining of some valuable commodities from earth’s crust. Not that long ago they were dealing with producing decorative rock for the construction industry, but they have apparently decided that this was not profitable enough (and it wasn’t) and they decided to shift their attention to precious metals.
They apparently have some interests in two mines in the Moapa deposits near Las Vegas, and according to news coming out of TWDL‘s headquarters, these properties are full of gold and platinum. We’re no geologists, but according to the Nevada Bureau of Mines and Geology and their special publication “Gold From Water (and Other Mining Scams)”, precious metals do not occur in ore-grade concentrations in the Moapa lakebed. (page 11 of the document will give you more information).
But let’s assume for a moment that the experts are wrong and there are tonnes of the stuff under TWDL‘s feet. This means that they will need to start the mining process, and that’s going to be a problem. Why? Because they don’t have enough money. You can have a look through the most important figures below:
- cash: $2,608
- current assets: $387 thousand
- current liabilities: $666 thousand
- revenue for Q3 of 2012: $40 thousand
- net loss for Q3 of 2012: $331 thousand
No wonder they decided to quit the decorative rock business which was their primary source of revenue thus far. Now, though, they are moving into the unknown with $2 thousand in the bank and nothing more than optimistic press-releases.
Furthermore, in the financial report we see that they have sold nearly all of their equipment in order to pay out a debt back in Q2 of 2012. This means that if they are to have any operations at all, they will need to either buy new machinery or rent some… with $2 thousand in the bank… and no reliable source of revenue.
Reading through 007 Stock Chat’s email, we remembered that we have seen TWDL in the newsletter database before. Their last promotion was back in June 2011 and the hype pumped the price up to $0.085. The promoters claimed that it will go as high as $0.34 per share, but now, a couple of years later, TWDL is bought and sold for $0.01 per share.
And if you think that this time things will be different and that 007 Stock Chat is different from the rest of the promoters, you should probably think again. To give you an example of how badly some of 007’s plays turn out, you can have a look through IMING CORP (PINK:IMNG)’s chart. 007’s promotion took place in December and the result was that they fell 50% in just a day and have been struggling ever since.
