Violeta Slavtchevska

Minerco Resources, Inc. (OTC:MINE) Tanks Deeply, But Promoting Continues

by Violeta Slavtchevska June 30, 2010
Minerco_picture.jpgAfter the huge nearly 50% jump on Monday, fueled by a number of different stock promoters, Minerco Resources, Inc. (OTC:MINE, MINE message board) chart looked somewhat different yesterday. Following the unprecedented buying volume from the first day of the week, the market appears now to be selling massively out.

Yesterday, three different promoters again disclosed to be working for the appreciation of Minerco Resources' stock. Though, this time it looks like either the market has recognized the promotional efforts to blur the mind of hopeful investors, or some share damping successfully took place. The stock tanked throughout the whole day on over 56 million shares traded and closed at $0.0306, or 24.07% down from the previous close.

MINE.png

As disclosed already on Monday, $50,000 have been paid for a one-week advertising contract. In addition, Minerco Resources has been alerted on a website, sending penny stock picks to its subscribers for free, by a contributor named DrDowJones, who is trading himself the stocks he promotes and admits the clear conflict of interests in his disclaimer, saying that his services are often paid using free-trading shares.

The stock stayed at the $0.90 level, until end of last month the acquisition of the Hydro-Electric Project "Chiligatoro Hydro-Electric" in Honduras was announced, for which the company will pay with restricted shares of common stock. Although there will be no immediate dilution, the action signaled to the market the weak financial position of the Minerco Resources.

Thus, the quarter results filed around two weeks ago were not really surprising. With $85 in cash being the only asset at the end of April and only a royalty interest of as much as $0.02 per 1000 cubic feet of a natural gas transporting Pipeline (still under construction), no revenues and obviously, no real business have been made since inception three years ago.

Further, $14,935 of the total $22,835 in liabilities Minerco owes to its former CEO, Michael Too, who was at the same time President, Chief Financial Officer, Principal Accounting Officer, Secretary, Treasurer and sole director of Minerco Resources. Unfortunately, he resigned from his positions in March this year.

Comments 0

Type the characters that you see in the box (5 characters).