MineralRite Corporation (OTCMKTS:RITE) – History Repeats Itself
A few days back we informed you of another pump campaign for MineralRite Corporation (OTCMKTS:RITE) that caused the ticker to drop 22%. And wouldn’t you know it on Sunday another round of emails arrived trying to praise the company and make it more alluring in the eyes of the investors.
Supported by the pumpers and some new announcements, yesterday the company went up 35% in early trading but ultimately finished the day going down with a little more than the same 22%. It is curious how a company that on April 23 traded exactly 576 shares managed to reach 4.1 million on hype alone.
The negative result wasn’t such a surprise having in mind all the red flags surrounding the company. Lets begin with the shaky financial stability of the company, which according to its latest report had:
- $9 thousand cash
- $183 thousand total current assets
- $608 thousand total current liabilities
- $357 thousand revenue
- $454 thousand net loss
Don’t let the somewhat substantial revenue impress you as all of the proceedings came from the company’s previous business model of oil and gas production. We couldn’t help but ask ourselves how a company that has less than $10 thousand cash reserves hopes to accomplish the “aggressive goals” they mention in the press releases.
Add to the mix the pump campaign which carries its own set of risks. One of the promoters was so excited that he even disclosed to have “NOT been compensated Five-thousand Dollars for this 1-day profile on RITE by StockMister, LLC.” We are unsure how such a statement is supposed to be interpreted.
And as we already mentioned StockMister, another company they touted recently is Trulan Resources Inc. (OTCMKTS:TRLR) which crashed on the very next day and is still on a downwards spiral.RITE has nothing to back up its shares so they will remain dependent on the whims of the market. A positive surge may be brought on by the next report for the first quarter of 2013 and the revenues they expect in 45 days. For now we advise you to skip RITE unless you are confident in your skills and experience.
