National Graphite Corp. OTCBB:NGRC) Climbs Further Up the Chart
National Graphite Corp. (OTCBB:NGRC) has been on a downwards slide since March dropping down from $0.23 to just 8 cents which is now their 52-week low. But with the start of May they rebounded and regained much of the lost value. Last week was no different with only Thursday standing out as an exception when the ticker stumbled and fell down by 20%. After that hiccup everything returned to normal and yesterday another 17% were added to the price per share now sitting at $0.24. Investors also demonstrated significant interest in the stock resulting in more than 1.4 million traded shares – a record amount for this year.
As the name of company clearly shows they are trying to make a profit by extracting graphite from their Chedic Graphite Property. And although it all sound just fine for now they don’t have much to show for themselves. Currently no proven or probable deposits of graphite have been located meaning that the company still has a lot of work ahead of them and the results are not guaranteed at all.
They have abandoned mineral sites in the past that were initially thought to be profitable like the gold exploration property in China and the Lucky Boy Silver Mine in Nevada. For over a year the company even went under the name Lucky Boy Silver Corp. But in order to evaluate a company some hard facts are needed. That is why we turned to their financial records with the latest one being a quarterly report for the period ending February 28. According to it they had :
- $254 thousand cash and at the same time total current assets
- $3595 total current liabilities
- no revenue since inception in 2006
- $76 thousand net loss
NGRC are keeping their debt at manageable levels and even the accumulated since inception net loss of $1.7 million is not as high as one might be expecting. The company has a lot of room to maneuver with only 66 million common shares issued out of the 499 million authorized so dilution of the stock is to be expected.
A positive sign for investors should also be the fact that there have been no paid pumps for the company in the past months. Yesterday one alert emails was sent by The Green Baron touting NGRC for the compensation of $6000. This may have influenced the trading a bit but is nearly not as alarming as the pump for some of the other pennystock companies operating in the graphite sector. The most recent fiasco was the $1.8 million promotion for Western Graphite Inc. (OTCBB:WSGP).
NGRC remain a company that promises a lot but has no real business operations at this time. The rise of their ticker may be followed by a sharp and sudden correction when investors decide that the time to take profits has come.
