Medinah Minerals, Inc. (PINK:MDMN) More Active on Valley Buying
At five cents, Medinah Minerals, Inc. (PINK:MDMN) is deep in a valley, after a long slide starting in the summer of 2012. The ticker is moderately active, and we have not seen the spikes in activity that promotions caused in 2011. However, MDMN reminded of itself on Thursday, adding around 14%. 
We have not visited this company since 2011, and we should return to its latest financial developments. MDMC is not a SEC filer, and provides information to the OTC pink sheet chapter directly. Its 2012 report shows: 
- $214,000 cash
- $11.2 million total assets
- $214,000 total liabilities
- $832,000 revenues
- $325,000 net income
It seems MDMC has an active mining exploration program, as well as potential revenues from selling part of the properties. Its activities are performed through Medinah Mining Chile, and thus the pink sheet company, based in Las Vegas, is a vehicle for what looks like a solid miner.
At five cents, MDMC is perfectly capable of mounting another upward run, and a mention from paid promoters would be a boost. However, MDMC seems too different from the usual penny stock company that has more promises than real revenues or earnings. We may expect a mailing, if a promoter wants to boost the record.
The latest news from the company is a sale of assets. The sale is for $5.4 million and includes two complete properties in Chili. The initial payment of $500,000 is scheduled for the end of May, and the rest of the sum will be paid over four years. The net gain on the sale of assets is more than a million dollars- and this news puts MDMN in the longer-term potential ticker, with steady revenues from a successful divestment.
But MDMN has another deal coming up, an agreement to sell larger assets for $180 million. We may expect this company to be rolling in cash in the future, and to repeat the climbs that it is capable of, even outside a promotional campaign. To gain an idea where a pump could take this ticker, look at currently promoted Colorado Gold Company, Inc. (OTC:CGLD). This stock shot up in price and volume, but quickly lost half its value as investors decided to realize profits, quickly selling.
All this said, keep in mind that the stock movement may be erratic and disproportionate to the otherwise positive news. Be prepared to go through corrections and decide beforehand the size of an investment you could afford to lose.
