This week, the development, exploration and mining company TAO Minerals Ltd.(PINK:TAON
, TAON message board
) sets the stage for another shock on the stock market. The Colombian enterprise appears in promotions, the usual outcome of which so far has been people getting 400% return but also many who lose their money in a matter of days. Both paid and unpaid promotions came out yesterday, the trading volume rose significantly, so there might be a sharp increase in the stock price very soon.
There are two visible trends that should be mentioned when considering TAO Minerals as an investment opportunity. In general, the price follows a pattern of steady decline over time and is currently no near the levels of previous years. Despite the general development, there are people who have made lots of money from this stock alone. This is due to the high volatility and the exploding effect of company announcements and stock promotions. Much like the present situation, in the fourth quarter of 2010, promotions took place resulting in enormous trading activity and price increase of more than 400% over 24 hours. Again similar to the present promotion, back then the hot topic was a property that is undergoing due diligence as operations are to start soon.
Given the above, it would be no surprise if today or tomorrow the price gets high above the levels of the past month. So far, the trend for promotions was a sharp increase followed by a sharp decline. Usually, after the hype the price would initially fall to its previous state, followed by a slight and slow decline for several weeks. The session yesterday closed at $0.0095, and it is up to see what the end of the week would be for TAO.
Now, apart from occasionally being the short-term investors` dream, TAO is also an enterprise of high uncertainty. The company was founded in 2004 and has not been able to show revenues since then. After six years, the most important effect of its operations is the accumulated deficit of $10.9 million. For the speculative investor, this is fine as long as the opportunity exists to make money by smart decisions over night. For the long-term investor, on the other hand, announcements about plans for acquisitions of new properties mean little, since results from past years indicate that the more profitable a project is announced to be, the worse the crash in stock price will follow after that.
Tao Minerals is a gold exploration and minerals development company headquartered in Colombia. Due in part to the strong foreign investment climate in Colombia, the company has chosen to focus its energies on this highly promising and traditionally overlooked region. With property already secured in the region, Tao plans to acquire a majority interest in two additional properties in the region.