Shortly after the end of yesterday’s session, a paid promotional newsletter in support of New America Energy Corp (OTC:NECA) flooded investors’ emails, which is pretty much the only new stuff about NECA for quite a while now.
Yesterday, NECA went up 6.25% closing the session at $0.34 on a minuscule volume of 7,000. That was the second positive movement in a row for NECA after it had gained 6.67% last Friday. Thus, NECA has almost recovered after the two negative sessions in the middle of last week.
Although it is too early for a consistent positive run, third parties have now approached a paid promoter to raise the hype about NECA. As shown in our newsletters database, the two-day promotional effort costs $6,500. Given that NECA does not dispose of a comprehensive promotional record, calculating the expected impact of the advertising campaign on the performance of NECA stock in the next couple of sessions is a challenging task.
Headquartered in Nevada, New America Energy Corp is an exploration stage company focused on acquiring and exploring mineral properties throughout the United States. One of NECA’s primary assets is the Mud Lake lithium project. The company claims to have hired a highly experienced exploration team but it has yet to report on any significant advances it might have made.
Financialwise, NECA is a diligent information provider which is evident from its regular SEC filings. NECA’s latest 10-Q report, which covers the quarter ended May 31, 2011, reveals that the company has:
- cash and total assets of $14 thousand;
- $82K of liabilities;
- net loss in excess of $93K.
The lion’s share of the company’s operating expenses is of administrative nature. Moreover, its thin cash reserve will definitely make it rather difficult for NECA to continue its exploration activities at full speed unless it receives considerable financial support either by stockholders, or by other groups.
