A total of two news alerts and a paid promotion worth $40 thousand have just commenced in favour of Universal Potash (PINK:UPCO), following the second consecutive negative price movement of its stock.Yesterday, UPCO stock only lost 1.22% in value, closing at $0.162 per share. However, another loss occurred on Monday too. The traded volumes were 144 thousand and 120 thousand, respectively. Given that both figures failed to surpass the average volume of 154 thousand, the current price decline suggests a lot of investors are now selling at a profit the UPCO shares they bought earlier.
The official announcement that UPCO came up with yesterday had little or no effect on the market either. Indeed, a mere intention to apply for permission to explore its Paradox Basin hardly sounds as promising as investors would like. As seen from the release, UPCO has approached another entity to make all the steps necessary to obtain the permit. So far, so good. Yet, UPCO has restrained itself from specifying how long it will take to receive that precious document from the State. [BANNER]
Universal Potash Corp defines itself as a “natural resource exploration and development company” that is focused on acquiring mineral properties rich in uranium, potash and other mineral deposits. Having adopted an alternative reporting standard, UPCO appears to be submitting its financials on a regular basis. According to the company’s latest quarterly report covering Q4 of 2010, UPCO has:
- a working capital deficit nearing the $130 thousand mark
- a net loss of $290K
To fill its financial gaps, UPCO has resorted to issuing new stock every now and then. Over 2.75 million common shares have been issued within the four-month period from Oct. 1 to Jan. 31. Since the total present number of outstanding shares only comprises 25% of the company’s authorised stock, one can assume that further dilution will most probably be taking place soon.
UPCO has its eyes glued to the mineral properties it has already acquired. Provided that the latter really turn out to contain great deposits of potash and/or other minerals, UPCO will not only strike it lucky, but also go stellar on the stock market.
