TheStockWizards Give Viking Minerals Inc (OTC:VKML) a Stab in the Back

There is no such thing as a free lunch. If you hold a stake in Viking Minerals Inc (OTC:VKML), you will probably know it very well. Having acquired a five-bagger status for a short while, VKML crashed down big time last Friday, much to the disappointment of all those greedy traders who were not satisfied with a 550%+ gain.

Indeed, VKML soared 552% on Thursday, Jan 17, powered by the usual scenario, i.e a classic paid pump accompanied by a bombastic corporate update. As it is, TheStockWizards got paid $5,000 to tout VKML throughout the day. They did their part by launching an email campaign that spread like wildfire among penny stock traders. The brand-new press release regarding the supposed acquisition of a gold mining property added fuel to the flames, as well. As a result, the company’s stock closed the session as one of the biggest penny stock gainers.

However, it was at this point that we all had to realize that the pump behind VKML had already run its course for at least two reasons.

To begin with, the vast majority of paid promotions tend to follow one and the same scenario regardless of their budget and continuity: a short-lived boom followed by a grand meltdown. Let us take a look at how other penny stocks performed in the past after getting a promotional treatment by TheStockWizards:

• EnerBrite Techs Group Inc (PINK:ETGG) – pumped on Oct. 23, ETGG lost 20% in value on day one and has since depreciated by an aggregate 83%!
• CMG Holdings Inc (PINK:CMGO) – promoted on Sep. 16, CMGO shares went up 1.56% on the subsequent session, only to steer a downward course which has so far written off 75% of their market value.

In addition, VKML does not really have anything viable in store, either. The company has no assets whatsoever and has not made a dime in revenue since inception in 2006. Prior to Jan. 17, VKML shares had already sunk deep into the sub-penny area, in spite of the 1-for-1000 reverse stock split executed in early-July. As it seems, the latter only served to artificially ramp up the price of VKML shares to $1.50 per share, narrowing the number of its O/S down to 108 thousand. This state only lasted for five days, though, as VKML managers quickly issued an astounding 131 million new shares to acquire a 60% interest in yet another gold mining property. Guess what? They never made it as they failed to provide the required $500 thousand. In the end, not only did VKML fail to get a stake, but it also diluted its shareholders since it had already issued those 131 million shares.

To sum it up, VKML seems to be lacking substance. This is fairly evident from its financials. In the context of its revenue-less existence, even VKML‘s minuscule current market cap is way too overvalued. That is why, there is practically no room for continual chart growth here, no matter how overly enthusiastic the pumpers are trying to sound like.