Jet-Life Penny Stocks are Going for Another Failure with TAO Minerals Ltd. (PINK:TAON)

TAO Minerals Ltd. (PINK:TAON) is one of those companies where we were aware of what we are in for the moment we read through Jet-life Penny Stocks’ email. That being said, we weren’t quite prepared for how deep the abyss is.

First thing’s first: What are TAON‘s operations? They are a gold exploration company, but you should note that “operations” might not be the most accurate term. Like most gold prospecting companies in Pennyland, TAON‘s forward-looking statements are more than they should be, the real plan for operations is virtually non-existent and information on the whole is scarce.

We have mentioned numerous times how important it is for a publicly traded company to disclose their financial situation but, apparently, some people never learn. The latest quarterly report that TAON have filed with the SEC was published on February 15, 2012 and it covers the three months that ended on October 31, 2012. Now, we do understand that there might be some delay but a full year without any genuine information borders on ridiculous. Shareholders don’t like being kept in the dark, and what TAON have done is taken away their food as well. Anyway, how were they faring back in 2011? Not very good, we’d say. Here’s a recap of the financial statement:

• cash: $6,488
• current assets: $39 thousand
• current liabilities: $2.8 million
• no revenue since inception
• net loss for the quarter covered: $2.2 million
• net loss since inception: $16.8 million

In addition to the dreadful and outdated financials, TAON have also been the target of numerous pumps by paid promoters over the years. We all know that this is the one of the worst ways to get publicity and the the constant decline in the share price clearly proves the point. They have tried to hamper the free fall with stock splits, but that didn’t work. There really seems to be nothing that can stop TAON from going under for good.

So who can actually profit from the pumps? Certainly not regular investors, like you, at least not if you have a long term plan. Promoters, on the other hand, have obviously received some hefty compensations for the emails. In addition to this, officers and directors have received and converted quite a lot of preferred shares, and they now have millions shares of common stock, which they can trade whenever they want. Whether they will sell them or not? We can’t be sure but if we were stuck without an actual salary, we’d consider it.

If you think that it’s still OK to invest in a company that have not given away any financial information for a year, you can have a look through Jet-Life Penny Stocks’ track record. Just like many other promoters, Jet-Life have touted many stocks, that plummeted to the ground as soon as the hype was over. A recent example of Jet-Life failure is ITonis Inc (PINK:ITNS). They were promoted by not more than a week ago and the huge red candle on the chart shows what happened.

The biggest problem with TAON clearly is the lack of current information. Unless they can solve this problem, and unless a more current and better-looking financial statement can come out, their shares will continue to fall until they reach rock bottom, which is probably where they belong.