James Rapholz Unleashes Promotional Coverage on National Graphite Corp. (OTCMKTS:NGRC)

If you take a look at the latest promotional email in favour of National Graphite Corp. (OTCMKTS:NGRC), you will see that a Mr. James L. Rapholz makes a bold suggestion to all traders out there – to put $2,000 into NGRC shares at the prospect of walking away with as much as $132,000 in a few months’ time. Quite a hefty profit, isn’t it? Is the mission possible, though?

Despite graphite’s growing popularity as a raw material, securing a profit of the calibre set out in Rapholz’s pump email in favor of NGRC seems clearly quite absurd for a few main reasons.

First and foremost, $132,000 is 66 times higher than $2,000. This means that if you were to splash out $2,000 on common NGRC stock, the latter would have to go up 6,500% before you would be able to rake in $132,000 in profit. When was the last time a penny stock did such a huge jump in just a few months? What is more, have NGRC shares ever made a quantum leap of this scale? As you might have already known, both questions have negative answeres for the time being.

Second, what is the financial situation of National Graphite Corp. Being a regular SEC filer, NGRC‘s latest quarterly report covering the period ended Feb. 28, 2013 is already up and it does not take a rocket scientist to determine that the company has a long way to go before even thinking about producing or extracting graphite. Indeed, its assets currently outweight its liabilities by a landslide. Yet, the lack of liabilities is not always indicative of successfull business operations. Rather, in NGRC‘s case, it shows total lack of such operations. Not to mention the fact that even if NGRC were to start exploring for graphite tomorrow, the $255,000 in cash (and equivalents) will hardly be sufficient to guarantee safe execution of all activities.

Last but not least, NGRC is by far not the first stock in Rapholz’s promotional dossier. None of the stocks this guy promoted ever managed to make any breakthrough on the charts. The new pump job on NGRC is unlikely to make any difference, even though its budget is reported to be a staggering $315,000 provided by third party Foster Media.

To wrap it up, traders are strongly advised to gather their facts, perform their due dilligence on the company and weigh out their options before deciding on putting their money into promoted stocks.