What does it take for a pink sheet to prompt third parties to embark on a promotional campaign? Generally, a press release is more than enough. Yet, the case with Shamika 2 Gold, Inc., f/k/a Aultra Gold Inc (OTC:SHMX) is different.
SHMX has not come up with any earth-shattering updates for quite a while now. Nevertheless, its stock somehow managed to deliver a fairly strong performance on the market session last Friday. Out of nowhere, SHMX shares gained 15%, ultimately rallying to their early-June level of $0.15 per share. While the turnover also spiked, it clocked in at a six-week high of 72 thousand, or considerably higher than the average daily trading volume of 27 K.
Now that SHMX stock has finally showed some definite signs of life, third parties have wasted no time in organizing a heavy advertising program. Evaluated at $15 thousand, the latter is expected to provide a one-week full coverage of the company starting from today.
Since no official news have surfaced for several weeks now, a quick look at SHMX’s financials might prove useful in determining the real potential of the aforementioned investor awareness program. According to the company’s latest 10-Q report covering the quarter ended Mar. 31, 2011, SHMX has:
- $620K in assets;
- $0.87 million in liabilities as compared to $0.033 million in Q1 of 2010;
- zero revenue for both Q1 of 2011 and Q1 of 2010;
- net loss in excess of $333K vs. $34K in Q1 of 2010.
As it seems, the financial period stated above will by no means be remembered as a good one for SHMX. On the contrary, the company’s financial health has seriously deteriorated over the course of the last four quarters. Which, other terms being equal, will definitely pose some challenges to SHMX’s going concern status. In addition, there are approximately 250 million shares of common stock that have yet to see the light of day. That is why, current SHMX stockholders must be aware that the shadow of dilution has already been cast upon them.
