Kaloyan Gadzhev

Santo Mining Corp. (OTC:SANP) Headed for the Bottom

by Kaloyan Gadzhev November 26, 2012
5SANP_chart.pngI got some backlash for saying Santo Mining Corp. (OTC:SANP, SANP message board) was a pump job, yet on Friday, it closed down again.

In just three hours and a half SANP lost 16.96% and closed at $0.47, just above the previous low of $0.4699 on Sept. 9.

On Nov. 12 the paid pumpers went silent and moved on. The last information provided by the company was a press release which was supposed to be a "corporate updated," but it was actually a summary of what SANP had previously stated, with the exception of a paragraph saying the company may be buying even more properties from its CEO.

Even at $0.47 per share investors are looking at a market cap of more than $36 million. At the same time all SANP has are some unexplored properties and:

  • $50,793 in cash
  • $135,071 total assets
  • $0 revenues
  • $125,868 total liabilities

When someone gets a $3.8 million budget to inflate the price of such a company, the management buys properties from itself and pumps out optimistic press releases full of forward-looking statements instead of warning investors that there is a pump, it's not a bad idea to do the research before you throw your money at the company.

In early trading today SANP is up about 4%, but that is not unusual. Investors are often unwilling to concede they may have made the wrong choice. Unless SANP comes out with something tangible and real, there is little hope it can support the current valuation for long.

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