Sanborn Resources Ltd (OTCBB:SANB) In Freefall Mode
What a month it has been for Sanborn Resources Ltd (OTCBB:SANB) and their shareholders. If you take the chart on the right, show it to some three-year-old children and ask them to say what they’re seeing, they’ll probably be quite unanimous that this is, in fact, a drawing of a roller coaster. Truth be told, they do have a point. There is one crucial difference, though – not everyone was having a good time. Some of you are probably asking: “Why is that?”.
Let’s start with the basics. On the face of it, SANB is nothing more than a typical penny stock. They’ve been struggling with the business of selling pieces of art and that’s why, they decided that they can do a much better job at digging gold out of the ground. A couple of months ago, they filed an amendment to their certificate of incorporation, split the stock, put some new people in charge and they were on their way to becoming very rich.
Just a month after the changes took place, they purchased some claims located somewhere in Peru. At this point, other small cap mining ventures will start bragging about how much gold can be dug out of the aforementioned properties, about how, two centuries ago, the mines were producing tonnes of the stuff and about how it’s all about to happen once again.
SANB took a different approach. Instead of telling everyone about the bright future, they put up a couple of pictures, some maps and some diagrams on their website, and then went quiet. Almost too quiet.
That begs the question: “How come their stock chart looks like a roller-coaster, then?”. Well, that’s because while SANB are refraining themselves from telling us what they’re up to, there are some other people that definitely want us to know.
Like, for example, the people who stand behind a website called Financier Times (FT) who received $3 million in order to write an article in which they said that SANB will jump from $0.50 all the way to $3 per share.
That’s not the first time they’ve been massively optimistic about a penny stock. A couple of months ago, the same people received the same amount of money to tout Northumberland Resources Inc (OTCMKTS:NHUR) and back then they were expecting some massive growth as well.
Naturally enough, they were wrong and instead of going up, NHUR turned into one of the most miserable promotional failures from the last couple of months. Looking at SANB‘s performance from the last couple of sessions (on Monday the ticker lost 26% and yesterday it erased a further 32%), we might be witnessing Financier Times’ second Pennyland disaster.
Not only FT are in on the pumping party, though. The outfit that helped them along during the prolonged campaign for NHUR, Billionaire Stocks, are also here, and the funny thing is, that as soon as they came along, the performance went from bad to downright catastrophic.
David Cohen a/k/a Research Driven Investor was also part of the pumpers’ army for a little while, but the real question is not “Who is doing the pumping?” but “Why are they doing it?”. We wrote quite a few articles on SANB over the last month and we saw that there are a lot of question marks around the people running the company. We recommend that you check them out and do your own research before making any decisions. This is absolutely essential when dealing with other pumped small cap tickers like Dephasium Corp (OTCMKTS:DPHS), Arch Therapeutics Inc (OTCBB:ARTH) and Amanasu Techno Holdings Corp (OTCMKTS:ANSU) as well.
