Sanborn Resources Ltd (OTCBB:SANB) Reaching New Heights
“We should have used the emails from the very beginning.”. This is what the people who funded the $3 million pump for Sanborn Resources Ltd (OTCBB:SANB) are probably thinking right now. The whole thing started about a month ago when an article on a website called Financier Times was written, a disclaimer stating that an entity called Central A Marketing is managing a $3 million budget was put at the bottom of the page and it was left there to get investors excited.
It did manage to affect trading somewhat and between July 8 and July 11, SANB registered four green sessions on the trot jumping from around $0.44 per share all the way up to around $0.60. Just when everybody thought that the sky really is the limit however, the ticker ran out of steam. A couple of disappointing sessions brought it back to $0.38 and SANB quickly went from hero to zero.
It regained some of the lost ground during the days that followed but the small volume suggests that people were simply not interested anymore. The pumpers however, weren’t ready to give up. They paid some money to their faithful forum-flooding friends who made SANB‘s message board among the most active for the last week or so. It’s so crowded in there, that if you were to post anything, your opinion will be on the second page within minutes.
If your research consists of nothing more than checking iHub, you might think that SANB is actually a great investment option. Fortunately, investors weren’t so sure. The volume was indeed a fraction higher than the average but the ticker was still spiraling out of control and on July 26, exactly one week ago, it reached a new low finishing the session at just $0.36 per share.
The pumpers had had enough. They had a huge promotional budget of $3 million and SANB was just refusing to perform. Some drastic measures had to be taken and apparently the heavy artillery backup came in the form of David Cohen and his newsletters. Since we mentioned him, we might as well take a quick look at his track record. On July 8 he sent out a couple of emails about Global Resource Energy Inc (OTCMKTS:GBEN). Back then GBEN hovered around $0.02 per share and Mr. Cohen said in his emails that it is poised to break through the $0.03 barrier easily. That never happened and July 8 ended for GBEN with no gains whatsoever. What happened next however, was a complete disaster. GBEN lost 20% on the day following the pump and now, three weeks after the alerts, the losses amount to no less than 74%.
With SANB, Mr. Cohen seems to be a bit more successful since between July 29 and August 1 the ticker registered some great gains. He seems more persistent as well, sending out a total of seven emails within just four days which is a bit baffling since for the one day show on GBEN, he received $40 thousand, while the compensation he discloses about the multi-day touting of SANB is just $15 thousand. The more important question however, is: “When will he stop alerting people about SANB?”.
Looking at the latest email, that might have happened already. He wrote to his subscribers yesterday saying that SANB‘s value has doubled since his first alerts and although he initially asked the question “Can SANB really triple?”, he seems proud of his achievement. What’s more interesting however, is the suggestion that he’s moving on.
Everybody’s wondering what will happen next. “Will there be other newsletters touting SANB?” and “Will SANB perform without the support of the emails?” are probably the questions tormenting the minds of people who have invested in the ticker (we can’t really be sure since the pumpers are still clogging up the message boards). Unfortunately, nobody knows what will happen in the immediate future, but even if the ticker manages to stand its ground, it probably won’t be for long which is why you should be sure to carefully consider all the options before making any decisions that might prove costly.
