After a temporary slump, Mammoth Energy Group Inc (PINK:MMTE) is back on its feet again. Yesterday, MMTE stock rallied 60% to close the trading session at at its May 4 level of $0.0024 per share. As far as the turnover is concerned, however, it skyrocketed to 292 million, scoring a 52-week high.
This is by far not the first time MMTE has experienced a substantial increase in value. Unlike many other previous surges, at least this one has been backed up by a press release that is not several months old. In fact, the company’s latest PR is a brand-new one and it popped up prior to yesterday’s session. According to the publication, MMTE had now brought its due diligence on the recently acquired lithium properties to a successful end. In addition, the company hinted at a Chile-based property whose acquisition was also in the works.
As suggested by the above mentioned PR, MMTE claims to be a development-stage company that has a vested interest in acquiring and exploring properties that have large deposits of lithium, as well as other alternative energy resource. The company envisages becoming a premier energy supplier and operator in due course.
Until recently, MMTE used to be one of the most heavily promoted penny stocks out there. That is why the lack of active promotions for the last three weeks might have come as a surprise to investors in pennyland.
When the company published its Q1 report for 2011 ten days ago, what traders most wanted to know was whether MMTE would still come up with no assets whatsoever. This time, the overall picture showed:
- $37.7K in cash and total assets;
- negative net worth of $223 thousand;
- zero revenue and a net loss of $220 thousand.
Although the company’s total assets figure seems rather minuscule, it still marks a minor improvement over Q4 of 2010 when MMTE had no assets at all. Unfortunately, it has not managed to generate any revenue since inception. Therefore, the management will have trouble covering the company’s short-term liabilities. Yet, MMTE will stand a good chance of striking it lucky provided that its properties eventually turn out to be rich in lithium and other alternative energy resources. Until then, stockholders might face dilution every now and then as there are more than 10 billion shares of A/S waiting to see the light of day.
