Pump Campaign Heating Up For IRMGF
A new promotion campaign for IRMGF gathered steam last week. According to our sources, at least 25 promoters hyped the stock through 80 newsletters. The email barrage is the first step in a $500,000 pump campaign for the penny stock.
And it appears to be off to a good start…
As you can see, IRMGF has traded up from last Thursday’s low of $0.095 to a current price of $0.137 per share. That’s a 44% gain in less than three trading days. Not too shabby.
But is the company really worth an investment?
Inspiration Mining Corp is a Canadian junior mining company out of Toronto, Canada. Since 2005, it has been engaged in the acquisition, exploration, evaluation and development of mineral resource properties in Canada and the US. The company primarily explores for nickel, gold, copper, and molybdenum.
However, after eight long years, the company is still mired in the development stage of its business.
It hasn’t produced any minerals from its properties in any meaningful quantities. It hasn’t generated a penny of revenue. And the company has racked up nearly $13 million in losses since September 2010.
The company’s financial performance clearly doesn’t make a strong case for risking investment dollars in IRMGF.
But here’s the most shocking part of the story…
In the most recent quarterly report (March 2014), management announced that all exploration programs on its mineral properties have been suspended due to adverse market conditions. And there is no definitive time frame for when these programs will be restarted.
I don’t see how it makes sense to invest in a mining company that isn’t doing any mining.
And it appears most investors agreed with this sentiment before this most recent promotion campaign began.
If you look at the chart, you’ll see that IRMGF was hit by a tidal wave of selling as soon as it hit a high of $0.202 in late May. The stock plunged over the next couple of weeks to a low of $0.095, wiping out 53% of the company’s market value in the process.
That’s a huge drop in a very short period of time.
Of course, the shares are now rising once again thanks to the new pumping effort. And it will be interesting to see if the half a million dollar campaign can continue to drive this stock higher. But even if it does, you know the rally won’t last once the dumping begins.
Profitably Yours,
Robert Morris
Category: Penny Stocks
