Stubborn Pumpers Try Again With MineralRite Corp (OTCMKTS:RITE)
The last time we wrote about MineralRite Corp (OTCMKTS:RITE), it was April 29 and to save you the bother of looking at charts and historical prices and punching the calculators, we’ll now do a quick recap for you.
The whole thing actually started a few days before our review, on April 25. A number of newsletters sent us quite a lot of alerts in exchange for some pretty decent compensations. While the pumpers were excited though, the investors weren’t that impressed and while there was some movement up and down, it wasn’t really all that spectacular. Until April 29, that is. The volume was 20 times higher than the average but the price… that was 22% lower by the end of the day. April 30 was even more painful with 44% of the value wiped out and by Friday, May 3, RITE had lost around 65% on the whole.
This, we’re sure, made quite a lot of investors pretty angry, but we can’t say that we’re surprised. We covered the promotional campaign for them in January and we saw what happened back then. Apart from the usual optimism of the press releases nothing seemed to have moved around RITE, so an outcome like this was pretty much inevitable.
Now, less than a month later, some of the more unyielding promoters are once again trying to convince traders that RITE is indeed a great investment opportunity. The perpetrators in question are JetLife, Lions of Wall Street, Penny Stock General and Penny Dreamers and when you look through their track records, you will see that they can’t be classified as the most trustworthy source of information on penny stocks. For example, Lions of Wall Street who, by the way, took part in the January pump on RITE also gave it a shot at promoting Santa Fe Gold Corporation (OTCBB:SFEG). The pump took place in January as well and the chart on the right shows pretty clearly happened.
With today’s touting on RITE, though, they got a helping hand by, you guessed it, a new press release. It went online yesterday and it states that RITE‘s separation facility in Utah was visited by none other than the cameras of Discover Channel. Apparently, the television giant got interested in RITE‘s revolutionary process of extracting minerals from ore and they decided to spend 6 hours of their time filming the whole proceedings. The footage will be broadcasted nationally and although the announcement doesn’t state when we will be able to see it, we’re sure that Discovery’s interest increases the chances of investors paying more attention to the ticker. What does that mean for the stock, though?
Well, nothing in particular. Indeed, the fact that people will be able to see the separation technology on their TV screens will be a good enough evidence that RITE are indeed working hard. The fact that somebody, somewhere around Discovery’s massive research teams got interested in the company as small as RITE is also a testament to their operations.
Let’s focus on the ticker and its performance, though. Indeed, the raised awareness will help RITE retain some of the trust among its shareholders, but you should remember that there’s a pumping campaign going on and we’re struggling to see what will stop the January and April crashes from repeating themselves. We’ve seen quite a lot of companies that, at first glance, seem to be solid ventures with real operations fall victims to the paid promotions, but with RITE the case is even more disturbing.
Here we have a ticker that has been there before. The previous campaigns ended in disaster and we don’t even have any up-to-date information about how profitable (or not) the company is. They said on May 15 that the long-awaited 10-Q for the period before March 31 will be ready within five days, but they failed to meet the deadline. This means that although they have so far reported according to the accepted standards, they are currently on the Pink Limited Information tier. It also means that until they manage to put the statement together, all the investors have to work with is the constant PR and mailing activity. And we’ve already seen that with RITE, this could lead to some painful results.