Viking Minerals, Inc. (OTC:VKML) Rages Up and Down, After Penny Stock Crowd Messages

Viking Minerals, Inc. (OTC:VKML) is a ticker we will be watching closely after markets reopen following the Martin Luther King Day. The stock jumped significantly, but wiped out more than 56% on the last charted day, January 19th.

Viking is the typical prospector among smallcap companies, always engaged in preliminary prospecting and with hardly any hope of going to market any time soon. The $3 million company holds very little reserves and relies on debt and new stock issues to continue existing. Although Viking announces plot purchases, it has limited financial strengths:

• Zero cash

• $29 million worth of stock to extinguish debt

• 400 million shares authorized, at $0.001 par value

With current stock prices at $0.02, the market may be flooded by millions of shares at any moment, with the possibility of selling shares for ten times their worth. The gold mining that Viking promises is still a long way off, and all that is happening is a series of press releases, announcing a preliminary agreement to purchase a gold mine in an unnamed spot in Northern California.

Viking claims the newly acquired mine may hold assets for up to $200 million, but so far all this wealth is in the ground. The 950-acre mine plus buildings and refinement equipment is paid for until 2016, but we are still to see if Viking manages to get to those rich veins promised by the geologists.

In the meanwhile, the only value created is the pumped-up volume and price for the ticker, coming from paid promoter Penny Stock Crowd.com. The $5,000 mailing touts the five-fold jump of the ticker from its lows to $0.05, with relatively healthy volume of 23 million shares. This cheap stock may offer other similar opportunities, though with 151 million shares outstanding large-volume selling is just waiting to happen.

Penny Stock Crowd has a long list of past stock picks, though with a small average payment of $5,000. It participated in the notable pump of Chancery Resources, Inc. (OTC:CCRY), the stock that now lost more than 90% of its value in a steep slide over the past weeks. In the case of short-term pumps and extremely cheap stocks, it is best to estimate if you can afford the sharp daily losses.