Trio Resources, Inc. (OTCMKTS:TRII) Sold Off Despite Damn Good Penny Picks Email

Trio Resources, Inc. (OTCMKTS:TRII) would not have arrived to our attention, if it was not for the $117,000 email campaign, with the latest reminder from Penny Stock Newsletters and Damn Good Penny Picks. But the activity created by the promoters ended up dragging the shares down. TRII lost more than 32% to $0.0665, on dollar volumes of above $214,000. Now, TRII faces the long weekend on a downward note.

TRII was also active in the past month with a series of PR messages explaining its plans and efforts to find precious metals, mineral water and other resources. In this, TRII recalls many other penny stock companies that give themselves an air of legitimacy by promising mining operations.

But with 44 emails already, starting back in October, the gold and minerals mining may not be the main news around TRII. And despite the promotion, this ticker slid down from touching the 40-cent levels to the current range around 7 cents that it has kept for a while. We may safely assume that the promoters have little more to offer. Yet TRII is underpriced enough to invite more buying- without any promise of a recovery.

Just one look at the balance sheet is quite enough, to see that despite the plans and reforms, TRII only has:

• Zero cash

• $304K total current assets

• $725,692 total current liabilities

• $2.4 million total liabilities

• Zero revenues

• $2.1 million loss in the past 13 months

As it is easily seen, the most TRII does is accumulate debt and losses. Thus, the ticker has very little redeeming value, even if it logs a few good days from now on.

TRII is coming in at a time when mineral companies are on the move among OTC stocks. Nevada Gold Corp. (OTCBB:NVGC) is among the primary movers, and despite some setbacks, for now buyers return, though on more subdued volumes. NVGC remains flat around 42 cents.

El Capitan Precious Metals, Inc. (OTCBB:ECPN) is another respectable mover, which after a steep drop for now keeps its levels around 17 cents.

If you are attracted to mining stocks, be aware that promises of finding gold often go hand in hand with aggressive promotions and a disproportionate inflation in price. For TRII, it is a big unknown, so counting all the red flags, plan the size and timing of your investment accordingly.