Gediminas Jasionis

El Maniel International Inc (PINK:EMLL) Heads For the Bottom

by Gediminas Jasionis November 17, 2010
EMLL_chart.pngEl Maniel International Inc (PINK:EMLL, EMLL message board) share price dropped more than 27% on Tuesday as the preceding rally finally failed.

The sudden price contraction is the usual outcome for high volatility penny stocks that shoot up on news and quickly overextend beyond any reasonable valuation.

The price rally originated from the recent announcement that El Maniel completed the geological mapping of another 100 acres of the gold mining concession in Western Ghana. Results were pleasing, however, the announcement itself didn't deserve the price increase that followed.

The development stage company currently focuses on gold field exploration and mining, oil terminal operations and philatelic investments. Such diversification of the business looks overwhelming, considering its poor financial position.

el_maniel_logo.jpgDespite the recent news on the gold field mapping progress, there were no material changes and thus the share price that put a market cap at over $3 million was not justifiable as well. The current price is still too high, considering the business held negative net tangible worth by the end of June, 2010.

El Maniel was established as a cigar company, but never had the capital to successfully develop the business. This practice continues into the present days, the company still constantly depends on outside capital and stock sales and has never made a dime in profits.

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