Goff Corp (OTC:GOFF) Soldiering On
A few weeks into the pump and Goff Corp (OTC:GOFF) are still managing to stay afloat. The paid newsletters and the press releases are helping right now, but we still reckon that there is little doubt in anyone’s mind that the crash is imminent. The question now is, who can profit from the whole excitement that’s been going around, and who will lose some hard-earned cash?
Well, we’re pretty sure that the paying parties will be quite happy at the end of the day. After all, they have spent some gigantic sums on the pump and we’re pretty sure that they intend to get their investments back. The pumpers themselves will also be smiling – the aforementioned money went straight to Awesome Penny Stocks’ and Victory Mark’s bank accounts and we managed to find that there’s also a hard-mailer campaign worth a whopping $1.5 million running for GOFF. Whether the regular investors will have the urge to punch the air on their way to the bank, however, is another matter.
The problem is, the people who have set themselves the task of touting GOFF are running low on positive things to say, which means that they are getting a bit silly every now and then. Yesterday, for example, we received an email from Penny Stocks Expert (owned by Awesome Penny Stocks), who say that GOFF will soon soar past $2 per share, which sounds far-fetched enough, but they also claim that the ticker could go as high as $10, which borders on impossible. Let’s assume for a moment that this actually happens. A quick calculation reveals that at that price, GOFF‘s market cap will reach a staggering $227 billion.
And what do you get for your hard-earned $227 billion? Well, according to the latest 10-Q, about $5 thousand in cash, $25 thousand worth of liabilities, and a company that is not bothered with raising the value of its shareholders whatsoever. Such a ludicrously high market value does sound improbable, but is it impossible?
Well, the pumpers insist that it could happen and they have even given us an example of a small cap company that has done it in the past – Lithium Exploration Group Inc (PINK:LEXG). In previous emails, the promoters tried to draw parallels between GOFF and serious mining ventures like B2Gold Corp (PINK:BGLPF). We wrote about it and we saw how inappropriate such a comparison is, but when you put GOFF and LEXG next to each other, things look a bit differently.
For one, as the pumpers mention, both companies operate in the mineral exploration business. That said, “operate” is probably not the correct word in this context since both ventures have not generated a single penny since they started. The promoters are right about one thing, however – LEXG did, at one point, reach $10 per share… briefly. It was back in 2010 and it was the result of a massive pump effort from a number of paid newsletters aided by some fluff PR’s published by the company. Since there was no real merit behind the whole campaign, though, they soon crashed and right now, they hover around $0.20 per share. Not surprisingly, their filings show that they have negligible assets, millions in liabilities, no revenue and some pretty significant losses.
In a way, you can interpret this parallel between GOFF and LEXG as a hint that sooner or later, it will all be over, and if you don’t play your cards right, you could lose quite a lot of money. You have been warned.
