Martin Tsvetkov

Mustang Geothermal Corp. (OTC:URXE) Is in for a Promotional Treat

by Martin Tsvetkov June 23, 2011
3URXE_chart.pngHow far would you go if you had a stake in Mustang Geothermal Corp. (OTC:URXE)? Would you get rid of your stock as soon as possible, or wait another four years hoping that URXE will rally to its glorious 2007 level of $250 per share?

While the latter might seem quite a far-fetched idea, it was in fact implied by an iHub trader on the URXE message board. Yet, some penny stock investors might be equally satisfied if URXE became the next 5-10 bagger. Otherwise, they would hardly have organized a brand-new promotional campaign in favour of URXE stock. Evaluated at $22.5 thousand, the advertising campaign is aimed at giving URXE a boost by providing a one-day coverage.

URXE_logo.pngYesterday, URXE stock did not change a wit in terms of value. Thus, it remained at its Tuesday level of $0.23 per share, which in turn resulted from a 24% price surge. In addition to yesterday's barely noticeable session, only 6 thousand shares changed hands, which is way below the average volume. Needless to say, this run of events might have had a serious impact on third parties' decision to launch this investor awareness program.

Occupying the Industrial Metals & Minerals industry, Mustang Geothermal Corp. focuses on acquiring, exploring and developing geothermal properties. At present, the company has interests in geothermal leases in Nevada, New Mexico and Peru.

As a diligent SEC reporter, URXE has adopted a transparent financial policy. Last month, the company published an amended 10-K form covering the annual period ended Mar. 31, 2011. According to the balance sheet, URXE has:

  • $73K in cash, the company's only current asset;
  • working capital deficit of $0.59 million;
  • zero revenues;
  • net loss in excess of $0.4 million as opposed to $1.4 million incurred in the previous fiscal year.

URXE estimates its leases at $1 million. However, until the company starts generating income from them, their book value will seem inflated to investors.

Comments 0

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