Borislav Tonev

MAXAM GOLD CORP (PINK:MXAM) and OrbitStocks Remain Grounded

by Borislav Tonev February 1, 2013

We thought that MXAM could be different and with fingers crossed and raised heartbeats, we opened the financial report. Not long after that, disappointment ensued and desperation engulfed our tormented souls... Okay, we might have overdramatized it a bit, but the fact remains that just like most of the other gold prospecting penny stocks, MXAM can't even afford to go to Nicaragua, let alone start digging. Here are the most important financials in a nutshell:

  • cash: $0
  • current assets: $0
  • other assets (no mention of what they actually are): $1.3 million
  • current liabilities: $1.4 million
  • total liabilities: $1.7 million
  • revenue (Q3, 2012): $0
  • net loss (Q3, 2012): $12 thousand

There are other discrepancies, as well. The report says that, for the time being, they will start off by buying gold from the natives who manage to dig it out at a lower cost, and then sell it on at a profit. Press-releases from yesterday and today, on the other hand, contain statements that MXAM are about to start mining and all the other related high-price-of-gold, millions-in-revenues claims that we are so familiar with.

57VTMB.pngIt would appear that someone really wants to see the price of MXAM go higher, though with a market cap of over $8 million, we think it's quite overpriced as it is. And there's no shortage of people who have humongous amounts of stock waiting to be sold. The company CEO, Charles Langrill, for example, in addition to the annual salary of $50,000, has also received a total of 2.6 billion common shares. The director, Mr. Frank Glinton has 750 million and a company called Envision Consultancy owns 1.5 billion shares of freely tradeable stock. Are we sure that they are going to start selling? Of course not, but there is such a possibility.

As for OrbitStocks, in addition to the fact that their emails sound almost the same every time they promote a company, in most cases, they turn out to be wrong. Vitamin Blue Inc (OTC:VTMB) is a classic example, and we were suspicious of them from the very start of the pump. Now, a couple of weeks later, the consequences are here for all to see.

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