National Graphite Corp. (OTC:NGRC) Digs Itself into Hole
The defeat for National Graphite Corp. (OTC:NGRC) is expected and final, as the stock fell rapidly in the past week, with Friday’s drop the largest- more than 42%. The PR messages and promotions have been silent for at least a week, and on the OTC market the ticker fell prey to large-volume selling. 
The NGRC stock turned the tides mid-week after easily climbing close to $1 and lost on average a third of its value each day as more than 15 million stocks changed hands. This is the slow-motion crash of a typical promotion, combined with PR promises of mining success. But NGRC has no real marketing success and it shows easily in its financial data:
- $192,624 cash
- $521,368 estimated mineral interests
- 499 million stocks authorized at $0.001 par value
- $128,808 net loss
Until the hype stopped, National Graphite showed confidence its Chedic mining property could yield enough natural graphite to market it at prices between $1500 and $3000 per ton, a historical high caused by high demand. However, any mining would be too small to compete with the imports from China and Brazil.
In a similar way, NGRC failed in its incarnation as Lucky Boy Silver, becoming another penny stock with no real precious metal mining which nevertheless promised high earnings in the future, based on rising gold and silver prices on commodity exchanges.
The graphite hype on the penny stock market does not stop with NGRC signing out for good. With strong patriotic overtones, several other miners clamor for attention, promising to replace imports from communist China. The patriotic promises come with a $800,000 budget via the emails of professional pumper Vip Stock News, among others. With 39 emails this month, USA Graphite Inc. (OTC:USGT) is picking up speed since the first emails on December 4th.
As usual with penny stocks, we predict this ticker may follow the path of NGRC soon after the promoters go silent, and with a large budget the pump may last for a while. In the case of mining penny stocks, it’s best to research the company on your own and decide if the lack of any real business and the inflated claims are worth your investment.
