Small cap mining stocks US Tungsten Corp (OTCMKTS: USTU) and LKA Gold Inc (OTCMKTS: LKAI) along with biotech Entest BioMedical Inc (OTCMKTS: ENTB) have been getting some attention lately in various investment newsletters with at least one of these stocks being the subject of paid promotions while another could soon be the subject of an investor relations campaign. But will any of these small cap stocks be winners for investors or traders? Here is a quick reality check:
US Tungsten Corp (OTCMKTS: USTU) Recently Raised Some CapitalSmall cap US Tungsten Corp seeks to become the first domestic producer of tungsten in almost 50 years as the company has staked substantial areas in Southwest Montana including the historic Brown's Lake Production area as well as the flagship Calvert Project. On Friday, US Tungsten Corp fell 2.5% to $0.156 for a market cap of $11.82 million plus USTU is down 60.2% over the past year and up 73.3% since March 2011 according to Google Finance.
What's the Catch With US Tungsten Corp? According to various disclosures, transactions of $5k, $7k, $6k and $50k have or will occur to mention US Tungsten Corp in various investment newsletters. However, US Tungsten Corp itself has been quiet when it comes to news as its last press release being an update from late November about the Calvert Project site. The company was planning to apply to the US Forest Service for permission to conduct confirmation drilling at the Calvert Project site and once this permission is received, it was hoped that a two to three week program at the earliest opportunity in 2014 would proceed – depending upon the weather and permitting constraints in Southwest Montana. Otherwise, there was an 8-K filing from January 23 to report the execution of a subscription agreement with Well Bright Asia Pacific Limited of Hong Kong, wherein the latter had agreed to subscribe for 2,000,000 units at a purchase price of $0.10 per unit. Each unit consists of one share of common stock and one non-transferable common stock share purchase warrant with an exercise price of $0.10 per warrant for a period of one year from the date of issuance of the unit. Well Bright also was required to make a $100,000 on or before January 31, and a $100,000 on or before February 15. A quick look at US Tungsten Corp's financials on Google Finance reveals no revenues; net losses of $0.31M (most recent reported quarter), $0.48M, $0.24M and $0.55M for the past four reported quarters; and $0.03M in cash to cover $0.71M in current liabilities at the end of last November – meaning the company is still a long way off from producing a mother lode from Tungsten.
LKA Gold Inc (OTCMKTS: LKAI) Might Soon Be the Subject of an Investor Awareness CampaignSmall cap LKA Gold Inc acquires and develops mining properties in politically stable jurisdictions capable of yielding high profit margins even during volatile economic conditions. On Friday, LKA Gold Inc rose 2.08% to $0.490 for a market cap of $7.29 million plus LKAI is down 3.9% over the past year and up 250% over the past five years according to Google Finance.
What's the Catch With LKA Gold Inc? According to various disclosures, no transactions have occurred to mention LKA Gold Inc in various investment newsletters. Last Tuesday, LKA Gold Inc announced that it was continuing to probe a high-grade vein structure in the North Raise area above the mine's 6th level with the President saying:
"The level of gold enrichment we're consistently encountering in this area is exciting. We're anxious to determine the length and vertical extent of this structure. It's right on trend and at the right elevation. Even if it doesn't prove to be the next big ore chute, it's a strong indicator that we're moving in the right direction."
On February 21, LKA Gold Inc had also issued a similar press release while in mid January, the company announced that the grade of vein material extracted during its exploration program varied widely in the fourth quarter of 2013. That press release went on to note that:
For the past three years, Golden Wonder ore shipments from exploratory mining have covered the cost of LKA's exploration effort….at the project level.
However, a mid February 8-K filing reported:
The Board of Directors of LKA Gold Incorporated (OTCQB: LKAI) (the "Company") has, over the past twenty-four months made numerous attempts to secure financing to expand its exploration program at the Company's Golden Wonder mine. To date, none of these efforts have been successful and shareholder value has suffered. While financing opportunities will continue to be evaluated, the Board has determined that it is in the best interest of the Company and its shareholders to take more active steps to increase the awareness of the Company to the investing public. To that end, the Company has contacted certain persons and entities that work in the area of investor relations and have discussed putting together an awareness campaign for the Company.
A quick look at LKA Gold Inc's financials reveals revenues of $287k (most recent reported quarter), $214k, $289k and $159k for the past four reported quarters along with net income of $1k (most recent reported quarter) and net losses of $127k, $2,806k and $2,609k. At the end of last September, LKA Gold Inc had $51k in cash to cover $514k in current liabilities and $126k in other liabilities. So perhaps LKA Gold Inc will soon be the subject of an investor awareness campaign to boost the stock.
Entest BioMedical Inc (OTCMKTS: ENTB) Has Been Quiet LatelySmall cap Entest BioMedical develops immuno-therapeutic treatments that address illnesses and maladies in both veterinary and human medicine. On Friday, Entest BioMedical closed at $0.001 for a market cap of $1.15 million plus ENTB is down 80.8% over the past year and down 99.9% since August 2009 according to Google Finance.
What's the Catch With Entest BioMedical Inc? According to various disclosures, no transactions have occurred to mention Entest BioMedical in various investment newsletters and there are no press releases from the company on major financial newswires. However, there was an 8-K filing in late January to report the January 17th issuance of 95,000 shares of Series AA Preferred Stock to the company's Chairman, President and CEO as consideration for $10,000 in accrued and unpaid salary along with a January 23rd issuance of 1,000,000 shares of Series B Preferred Stock as consideration for $1,000 in salary owed to him and a January 23rd issuance of 15,000,000 shares for $15,000 of principal indebtedness to him. A quick look at Entest BioMedical's financials reveals no revenues; net losses of $515k (most recent reported quarter), $77k, $399k and $140k for the past four quarters; and $3k in cash to cover $646k in current liabilities at the end of last November. So maybe investors should wait for some more news and more financials from Entest BioMedical.
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