Shares’ performance of KAT Exploration, Inc. (PINK:KATX) from yesterday proved that investors’ excitement may really have different dimensions.
Looks like these days investors may be excited not as much by the company’s mineral properties, but by the possibility to profit on the insanely low price of KATX.
During the trading session, the price of KATX tumbled down not just to a new 52-week low, but to its all-time low.
The new deep bottom was confirmed by 9.3 million shares changing hands. The prodigious trading volume exceeded three times the average for the company and became “invisible” on the price chart of KATX, due to the fearful closing price of $0.0153 per share.
Just one month ago, in connection with the retaining of CFSG1 as the company’s exclusive investor relations representative, Mr. Ken Stead, the President/CEO of Kat Exploration, stated: “Our goal is to reach out to investors who are excited by the numerous opportunities offered by the properties on which we are exploring.”
Looks like as of yesterday investors’ excitement about the company’s properties was not very high.
In addition to the above new partnership, this Monday KATX made the next attempt to attract investors. Though the disclosed unaudited financial statements as of November 30, 2010 could give some impetus to investors to reevaluate the company’s shares, investors’ excitement was in support of the continuing downtrend.
In its reports, the two brothers and the company presented some numerical information about KATX’s eight mineral properties with a total number of 1003 claims.
Unfortunately, in the financial report there is information only about the incurred mineral property expenses of $1.97 million for a year time with no details about the company’s rights and considerations related to them.
Different kind of investors’ excitement evokes also the issue related to the long discussed by holders on KATX “Handcamp” gold property, located in the Province of Newfoundland and Labrador, Canada.[BANNER]
According to the official disclosures of the majority owned by Mr. Ken Stead company Kat Gold holdings Corp. (PINK:BVIG), last June BVIG acquired 100% of the mineral rights that KATX held in the “Handcamp” gold property. No matter who the owner is, in the above financials KATX presents recognized expenses related to “Handcamp” even for the period after the acquisition. Who knows what kind and what amount of mineral expenditures will recognize then BVIG in its financial statements.
It is interesting to mention that the last huge investors’ excitement about KATX’s shares was last June, when they were worth sixteen times more than yesterday.
Considering the controversial and not complete information about the mineral properties of KATX, maybe some investors will say that it is worth now to pay attention only to the excitement of the short-term gains from the company’s gold stock.
