First Liberty Power Corp. (OTCMKTS:FLPC) Continues to Peak
First Liberty Power Corp. (OTCMKTS:FLPC) is at the peak of its 2013 trading, currently at $0.047. Nearly 10 million shares were mopped up, as buying increased in the past four days. Of course, it’s no wonder FLPC would be so active, given that the company is boosted by a small promotional campaign, plus a widespread PR effort, outlining a bright mining future. 
FLPC is a call back to a penny stock fad from the past months, where small cap companies competed to present mining prospects of rare minerals- all on American soil. FLPC claims it has started antimony mining, by recovering a mine unused since the 80s. 
FLPC is also a Stock Aviator alert, with investors’ message boards expecting more buying as the company is on an upward spree, and still accessible enough at those price levels. In addition to the general hype, FLPC was mentioned by SmallCap Specialists, among other tickers, as a noticeable mover in the past days. Lions of WallStreet sent off an email for a $2,500 compensation.
For FLPC, the sharper the trend, the bigger the chance at a reversal. For now, the company has survived well for a few days without new updates, the general mood on forums is positive. Yet despite the first blast on the mine, the financials seem a bit underwhelming, and even deficient for a longer mining operation:
- cash: $7 thousand
- current assets: $19 thousand
- current liabilities: $1 million
- no revenue
- quarterly net loss: $450 thousand
With those strengths and weaknesses, FLPC promises to mine lithium, antimony, vanadium, uranium, and graphite. Those are in-demand metals used in batteries, mobile devices and others- and for some, the US is mostly an importer, since domestic mining has proven too expensive.
Graphite was especially salient, pushing several penny stocks to peak, boosted by promotions. One of those was Graphite, Corp.(OTCMKTS:GPRH), bursting to activity at $1, only to start losing on the promotion, sliding to about 7 cents since the end of 2012.
A few days ago, First Titan Corp. (OTCBB:FTTN) was all the hype, until it failed to scale the $2.50 levels, and slid back. The company promised great oil and natural gas returns, but it turned out it was only operating a small well with insufficient production, and all the stock momentum was due to speculative interest and disproportionate enthusiasm. The ticker almost touched $2, but in a few days slid back to $1.30.
If you believe those companies more solid because of the mining prospects, think again- the shares usually move in disproportion to the company’s real achievement. It is best to stay away unless you can estimate how not to be hurt by the inevitable corrections that follow the periods of growth.
