Northumberland Resources Inc (OTCMKTS:NHUR)’s Pump Is Coming To An End
It’s all but over for Northumberland Resources Inc (OTCMKTS:NHUR). Yesterday they fell by a further 6% and closed the session at $0.95 which means that they are now around 50% below the high of the pump.
This also means that just like the multi-million dollar pump for Norstra Energy, Inc (OTCBB:NORX), the expensive campaign for NHUR seems to be over. NORX have been showing signs of waking up recently, though, but can NHUR do something similar?
Well, nobody is able to predict that with certainty, but let’s say that we have our doubts. We wrote a couple of articles on NHUR and we managed to find dozens of red flags around the company. Let’s start with the basics, though. They tried (intentionally or not) to aid the pump with optimistic press releases that came out on May 13 and June 10 when they said that they’re starting work at two new properties. This did have an effect and if you take a closer look at the chart, you will see that the two sessions ended in the green. Shortly after that, however, there were some huge drops.
This comes as no surprise for us because we know what NHUR have to show us in terms of financials. Here are the figures once again as found in the latest quarterly report for the period that ended on March 31:
- cash: $5,423
- current assets: $106 thousand
- current liabilities: $216 thousand
- quarterly revenues: $39 thousand
- quarterly net loss: $152 thousand
We can see that their revenue year-over-year has declined by over 80% and, needless to say, if their current financial situation is even remotely similar to the one reflected in the 10-Q, NHUR are going to have a hard time exploring the two new wells. There are some things that raise even more doubts around their potential for success, though.
If you have gone through our previous articles, you would probably know that we managed to find some connections between NHUR and several other mining penny stocks. We are talking about National Graphite Corp (OTCMKTS:NGRC), Tiger Oil and Energy Inc (OTCMKTS:TGRO), Black Hawk Exploration Inc (OTCMKTS:BHWX) and Universal Potash (OTCMKTS:UPCO).
When you go through the filings of all these companies, you see the same name cropping up over and over again – the one of Ken Liebscher. He is the CEO of NGRC and TGRO (TGRO had some dealings with BHWX in the past) as well as a Consultant for UPCO. As we mentioned Mr. Liebscher was also once the CEO of NHUR themselves. But he is gone now. NHUR‘s CEO is currently Mr. Fortunato Villamagna, so what are the chances of all this being nothing but a misunderstanding? Could all these things be just a matter of negligence of behalf of the people maintaining the companies’ websites?
Technically yes, there is that option, but let’s take one other fact into consideration. When we read through Mr. Villamagna’s biography we can see that he was once the President and CEO of a company called Utec, Inc. A quick research reveals that they were a publicly traded entity and their ticker symbol was UTEI. We even managed to find complaints from people receiving SPAM emails about them. Right now UTEI is not an active ticker, however. In 2010 they decided to change their name to… Tiger Oil and Energy Inc. When the name was changed, Ken Liebscher became the CEO of TGRO. Shortly after that, Mr. Villamagna took the helm of NHUR and the two people effectively switched their positions.
In our mind there is absolutely no doubt that there is a connection between Mr. Villamagna, Mr. Liebscher and the companies that they control. This is a cause for concern in its own right, but when you have a huge paid pump like the one for NHUR involved, things look even more scary. That’s why we reckon that the risks are quite high and considering them is absolutely crucial before making any investment decisions that might prove costly.
