USA Graphite Inc (OTC:USGT) Runs on Spam Campaign
After a shaky start of a paid pump campaign, in the last week of 2012 USA Graphite Inc (OTC:USGT) held a relatively stable gain. That doesn’t mean it’s a stable investment.
On Dec. 31, USGT closed up 2.63% at $0.78. This isn’t the result from some significant fundamental change. It seems the reason for the positive market performance of USGT can be traced to the ongoing pump job by the Stock Castle group, the hype press releases by the company and some spam emails.
The last one is a more rare occurance in the world of paid pumps. In most cases it’s either a low-volume spam campaign, or an openly paid pump. In the case of USGT, however, there’s been plenty of both.
The same pumpers which now tout USGT, pumped Premier Brands, Inc. (OTC:BRND), f.k.a. Tracksoft Systems Inc, which is now down more than 80%.
The latest press release by the company was supposedly an update on their efforts to find more graphite properties. It didn’t really contain any specific information. It just stated that USGT had been “evaluating additional projects in Nevada.”
While USGT tries to add to the hype with such press releases, it still hasn’t answered the question of how it intends to buy these properties with $2 thousand in cash.
Then there’s the matter with the properties they have supposedly already acquired, and the little detail that the company they “bought” them from shares the address of USGT‘s legal counsel, namely Zouvas Law Group – a name which has a story of its own.
Today USGT got to a negative start although it has started to recover. Sooner or later, the company will have to provide something tangible, or face the fate of all the other pump jobs. Traders should be able to figure out where USGT is headed.
