Sanborn Resources, Ltd. (OTCBB:SANB) Picks Up on Promotional Emails
The graph of Sanborn Resources, Ltd. (OTCBB:SANB) is making a strange pattern- a short slide, followed by a pickup. The last two days passed under the influence of a promotional message, and SANB added more than 11% on Tuesday to stand at 50 cents. Trading volumes were above $664,000. 
SANB is newly traded, and got a little boost from a small-scale promotional campaign, with five emails in July and a budget of $15,000. The emails started as far back as July 11th, and the ticker seems very responsive. Also, SANB was promoted on several landing pages, with reports imitating original media. 
But what does this new wonder do? Until April this year, SANB was Universal Tech Corp., and now it lists its activity as retail. The scarce press releases of the company reveal deals among offshore subsidiaries, and the acquisition of a mining company for $700,000. Before that, the company dealt with art retailing. The new corporation was made just ready for a promotion- with more authorized shares, following a stock split that made the shares more attractive and accessible.
SANB is too full of red flags to list, so we start with the financials:
- $2,000 cash
- $69,000 total current liabilities
- $79,000 total revenues
- $136,000 net loss
As it is easily seen, SANB is weakly furnished, and carries some debt, but the scale is a bit too small for mining ambitions. Gold in Peru sounds promising, but penny stock companies often tout the great mining resources when they never achieve actual operations. 
Strangely, SANB is mostly inactive on the most visited portal for news and press releases, the latest piece of news was a financial filing from back in May.
If we look at similar stocks, we see the story of Tungsten, Corp. (OTCMKTS:TUNG), another recently active ticker. The stock started with a promotion a month ago, but could not hold to the high levels, and has slid ever since. TUNG started at much higher levels, and moved from $1.10 to just 34 cents, with a tendency to go lower.
Energy companies are also a common bid among penny stock promotions, as having resources in the ground sounds appealing to investors. Among the active pumps is Origin Oil, Inc. (OTCMKTS:OOIL), which did not manage to hold onto the high levels and went into a steep slide. Global Resources Energy, Inc. (OTCMKTS:GBEN) is not faring better, not even making a trend, just swinging wildly as it is usual for double-zero stocks.
Mining tickers are seen within all price ranges. While double-zero stocks are considered more risky, there may be a sharp correction at any price. If you are not convinced you can afford the corrections, it is best to stay away from SANB and all of its red flags.
