Western Graphite Inc (OTC:WSGP): New Name, Old Game

As it seems, Tobin Smith has just initiated sponsored research coverage of Western Graphite Inc (OTC:WSGP), presenting the latter as the next big boomer in the graphite industry. While we tend to welcome such prospective boomers in any industry, we still decided to take a closer look at what WSGR is all about. Ironically enough, we were far from impressed.

For those of you who happen to check out WSGP on the charts for the first time, you might be wondering if this is actually a brand new player on the market. And you could not be further from the truth.

Until barely two months ago, that same company was purportedly doing business as Lucky Strike Explorations, Inc. The latter is nothing but a failed explorer of mineral properties. In fact, Lucky’s only exploration attempt for the last 4 years proved a dismal failure. As set out in their latest 10-K report for the fiscal year ended Dec. 31, 2012, the company’s sole employee, Michael Noble, did not spend a dime in research and development since inception. Considering that the guy supposedly spent between 2 and 5 hours per week on company-related matters, one could only guess how he was able to simultaneously serve as Lucky’s President, CEO, CFO, Treasurer, Secretary and director. By contrast, his total failure is evident to pretty much everybody. Under his leadership, Lucky Strike Explorations, Inc. went nowhere.

That is why, when the company changed its name to Western Graphite, Inc. in late-February with Noble’s resignation coming two weeks later, this development could have given a little hope to the company’s most avid supporters. A 10-for-1 forward stock split occurred at the same time raising WSGP‘s A/S and O/S to 750 million and 58 million, respectively. The new officers, namely Syit Kucuk and Lauren Notar, have yet to buck the negative trend and lead the company out of the dead end it is now. However, we very much doubt that this sort of mission will succeed based on paid advertising.