US Graphite Corporation (OTC:USGT): Pump Over, but Still Dangerous
The graphite craze on the penny stock markets continues, with new names replacing the old at the end of each pump. Yet some tickers come back, as in the case of US Graphite Corporation (OTC:USGT), which added 11% to its price after a series of falls. 
The company reminded of itself this Friday, as it sent another press release promising to test its graphite mining property. Although its latest promotion was from December 5th, the PR messages continue. The USGT ticker was promoted in a high-visibility campaign, with 51 emails in December and we announced the crash days ago, but it seems the same story may be repeated for investors, on a smaller scale. We received the most prominent, paid emails from WallStreet Advisors. 
To avoid falling for the hype and losing a significant percentage of your investment in a single day, get acquainted with the fundamental qualities of this company:
- Zero revenues
- $3000 Cash
- $53,000 net loss
Given that the company has no real mining and marketing activity, it’s strange that it shows so much hope around the production of graphene, a special graphite cover that can be used in inexpensive solar panels. While USGT only burns through cash and promises to become a significant producer of graphite, those are only future promises that have little chance of materializing.
The promotional hype of USGT is almost identical to the story of other graphite produ
cers. The companies usually hold promising, but unexplored plots and always underline how much demand there is for graphite. Since most graphite is imported into the US from China and Brazil, US-based graphite “miners” give their message a patriotic overtone as a liberation from dependance on international imports.
The two other recent pumps were National Graphite Corp. (OTC:NGRC) and Graphite Corporation (PINK:GRPH). Both stocks went down significantly when the promoters went silent, although they had some good days on PR messages. In the case of graphite or other mining stocks, it’s a risky bid to believe the companies will develop real marketing success, so judge for yourself before believing the emails.
