It is a couple of days since the last known promoter invited its newsletter subscribers to “Aim High” with Gold American Mining Corp. (OTC:SILA) stock, but the effects of the recent costly stock promoting are lasting. The direction of move for both price and volume is up again, but as the business stands still, it looks like only the shorters might cash up.
The numerous alerts sent out by an uncountable number of stock promoting websites over the last nearly three months are still able to sustain the demand for the stock. The latest promoting slogan dates back to last Wednesday, as a stock promoter appealed to investors to “aim high”, with SILA being among the real deals on the market and spread out the latest press release by the company, which provided the usual ” preliminary results of the magnetic survey” on the Guadalupe Property in Zacatecas State, Mexico and promised for more PR by the end of the month.
Yesterday, shorters decided that its time to hit the market again: 80% of the enormous for the stock more than 840,000 trading volume consisted of short sales and the result was a 15.54% jump in the price and a close at $0.751.[BANNER]
Providing some insights about Gold American Mining’s recent business activities and searching for something to justify the $64.5 million market cap will be disappointing however. The Guadalupe Property in Zacatecas State, Mexico seems to actually exist, though it is still an option, acquired in April this year and subject to a number of conditions:
- $900,000 in cash payments
- 1,000,000 restricted shares to be issued to the purchaser
- $2 million in exploration and development cost to be funded by the company
It will be interesting to know if Gold American Mining could meet that conditions before it can conveniently provide results. At the end of April, the company had around $41,000 in cash. The investment activities over the previous eighteen months have been the development of a website and the purchase of some computer equipment, which, worth all together about $26,000, is the only long-term asset on SILA’s balance sheet.
Though, as the their stock shows, the real investment has been done somewhere else. Since the beginning of May, more than $380,000 have been paid to the promoters mentioned above, for services that are also well known.
