Lithium Exploration Group Inc. (OTCMKTS:LEXG) Dropping On High Volume
Lithium Exploration Group Inc. (OTCMKTS:LEXG) is a company which we haven’t written about for a while, mainly due to the fact that there hasn’t been a lot of action with their stock. Yesterday’s session, however, begs to differ, as quite a lot of the company’s stock was traded, while LEXG lost some of its value.
The stock of LEXG has been sliding down after its latest peak of $0.244 on August 13. Since then the stock lost 38% from its value registering only 1 day in the green, with little amounts of traded stock.
Yesterday, however, the volume of traded stock increased to nearly 5 times their average of 392 thousand shares as the stock slid a further 16% down. The total amount of traded stock came at 1.7 million shares while they were going from $0.18 to $0.1501 and generated a trade value of $280 thousand.
As we know LEXG is an exploration-stage company and they claim to have projects in Canada and Argentina. Since their inception in 2006, however, we haven’t found any facts or documents confirming the acquisition of properties, apart from claims in the company’s press releases.
Their financial reports don’t list any acquired properties. The only other posessions that they have except cash were prepaid expenses that consist of legal retainers, a deposit paid to obrain a license on patent rights and an investment in First Reef Energy Inc., a company that we have failed to find anywhere.
Its wasn’t that long ago when LEXG‘s CEO, Alexander Walsh awarded himself 25 million shares of the company’s stock and most probably shed them all in the dumping fiasco at the end of April 2011. Back then the stock was above $5 and at one particular day when the shares of LEXG were worth $10.57 per piece Mr. Walsh held an amount that could have been sold for $264 million, just 6 months after getting in the bosses’ chair.
The recent promising press releases on the background of the company’s bad financials may be an indicator that there are still some insiders who want to shed their holdings, but the stock is virtually dead and the profits aren’t that great. This is why we consider LEXG a risky investment and we would advise you to do your due diligence if you decide to take the risk.
Another ticker that has been headed down lately is that of Xumanii, Inc. (OTCMKTS:XUII), who have been in freefal since the beginning of the month. After yesterday’s trade session their stock is valued at $0.03 per share.
On the other hand E-Waste Systems, Inc. (OTCMKTS:EWSI) are in a great period and while their stock traded in high volumes yesterday they managed to gain 35% in value and close the session with $0.061.
