USA Graphite Inc (OTC:USGT) Pump Crashes

USA Graphite Inc (OTC:USGT) is the current pump target of the Stock Castle group, and we’ve been keeping an eye on it since the start.

Despite the obvious signs that USGT is a pump scheme, or perhaps exactly because of those signs, USGT has been going up. On Friday, it closed up another 7.2% at $0.67 per share.

After the close the company issued a press release about another property they are supposed to acquire. The funny thing is they are getting it from Nevada Minerals Holdings, Inc. (NV Minerals). Looking at the 8-K forms filed for the agreements some traders may fail to see one very disturbing detail.

The address of NV Minerals is 2368 Second Avenue, Third Floor, San Diego, CA 92101. Ignoring the fact that the building looks like a residence, guess who else is located at that address. None other than Zouvas Law Group, the legal counsel of USGT, and a former partner of Carrillo Huettel.

It will be interesting to see how long this pump can go before following in the footsteps of predicesors like Premier Brands, Inc. (OTC:BRND) and IDO Security, Inc. (OTC:IDOI).

It seems the other graphite pump job, National Graphite Corp (OTC:NGRC), is all but done already. USGT may be on its way too. When I started writing this article it had just opened with a gap up, and right now it’s about 12% down. Hopefully, most people knew what they were doing with this one.