Red Mountain Resources Inc.(OTC:RDMP) is certainly among the most exciting otc companies out there. There might be serious dollar volumes some weeks, but there is also the total inactivity on the stock markets for months. Zero shares traded on one day, 3,500 traded on the next, and 217 000 exchanging hands on the third. There must be something going on. RDMP-171011.jpg

Not really. At least, there is nothing at first glance to justify the Friday hype when 217k shares exchanged hands. Not that the stock price benefited much from it – it was a day of less than a 2% increase, the session closing at $1.63 per share. As mentioned – no press releases that week, no major SEC filings to inspire traders, no promotions, no rumours flying around on the Internet. Nothing.

It is interesting to mention that the situation is quite similar when searching for additional information about Red Mountain Resources. Besides the fact that there is hardly anything in the press, there is also their website, which is more like a blog with a name on it. The only source of information to look into is an SEC filing. At least, there are lots of filings to check, the latest one being the notification of late filing. So, the 10-Q would be a little late. The last one covers a period with an end-date April 30th this year and includes the following: [BANNER] RDMP-web.jpg

  • $131k in cash;
  • $5.1 million in total assets (4.9 in promissory note receivable);
  • $821k in liabilities;
  • $4.3 million in accumulated deficit;
  • $0 in revenues;
  • $187k in net loss;

All in all, much uncertainty in place. In terms, it is a very difficult task to assess what the investment opportunities are and what the level of risk is.