Strike Graphite Corp (CVE:SRK) (PINK:SRKZF) was mentioned in one of the newsletter emails tracked by Hotstocked. The email only contained a detailed profile of the company but was empty of any news. Some increase in trading activity might be witnessed nonetheless.
The promoter, Wall Street Stallions, revealed to have received a payment of $15 thousand dollars for the distribution of stock advertising emails. The disclaimer doesn’t reveal who paid for the distribution of this advertisement.
It’s important to know that most of the stocks discussed in such emails tend to get additional attention from traders and they tend to have increased volatility when interested parties start dumping their stock holdings.
Traders should be aware that Strike’s market cap of $11.4 million is already nearly 12 times their book value. The company has no income from operations and relies on sales of capital stock to survive. There is already a lot of expectations built into their share price and any further push up would inevitably lead to a hard price crash.
The company did find some gold at the beginning of the year, but it all has already been accounted for in their share price. The technical price action analysis suggests it would rather collapse than go up from the current consolidation zone.
