USA Graphite Inc (OTC:USGT) Spam Continues, Volume Down

USA Graphite Inc (OTC:USGT) is still one of the most active stocks on the OTC, largely thanks to a paid promotional campaign and spam emails.

Yesterday, USGT closed up 3.90% at 80 cents per share. The volume, however, was about 1.2 million shares – lower than the previous three sessions.

The company itself has been silent since Dec. 28, but the pump mails from WallSt Advisor and Stock Castle keep on coming. We also continue to receive unsolicited spam emails touting USGT.

USGT hasn’t filed anything after the Dec. 11 8-K about the employment agreement with Wayne Yamamoto. Potential investors should ask themselves if a company concerned about its shareholders wouldn’t make any comment when there are spam emails using its name.

Another reasonable question would be what does USGT have that’s worth $103 million? That’s the market value of USGT at $0.80 per share, assuming the number of outstanding shares OS is 129.4 million as OTCMarkets says. If the number of OS is higher, as the latest 10-Q indicates, then the market cap is even higher.

Since, USGT hasn’t announced any financing, one has to assume it has what it had in its latest financial report:

• $3 cash
• $2,003 total assets
• $170,206 total current liabilities
• $0 revenue

There are also the properties USGT “bought”. Properties that haven’t been sufficiently explored. Without feasibility studies, there’s no way to know whether USGT can actually make any profit.

At this time, USGT is trading below $0.80, but the volume may get higher by the end of the day. It will be interesting to see how long can this pump go on.