2WMNS-logo.pngThirty thousand here, thirty thousand there – just an ordinary Tuesday for Westmont Resouces Inc.(PINK:WMNS). No cash at hand, yet millions of shares are traded, the $0.1 is a level that the stock could obviously reach but not hold for a long time. The cause, unfortunately, cannot be found via technical analysis, it is promoters that affect this stock day after day. WMNS-11.05.11.png
There are the ones who say this would skyrocket 1000-2000% in several months. Then, there are the ones who say this is going up today, tomorrow is another matter entirely. Generally, promotions for Westmont fall into the second category. The ones from yesterday are no exception. Several paid promotions came out, which sparkled another hype. Yet, while the price reached $0.1 at one point, the session closed at $0.07 per share, supported by more than 4 million shares exchanging hands for the day. 
It is debatable whether the above would have happened if investors had some time to review the balance sheet of Westmont. The 10-Q is out there, it is the last SEC filing of the company and includes the following for the period with an end date Feb. 28th, 2011: [BANNER]
  • cash – $0.00;
  • total current assets – $0.00;
  • total current liabilities – $1.15 million;
  • net loss for the last three months ending Feb. 28th – $1.2 million; 
So, several questions come to mind, one being how does a company with no cash operate? Even more interesting – since capital is needed to continue operations, what would Westmont do to secure financing? The latter has a simple answer, yet one that obviously only a few people seek to find. This company is a pink sheets one for a reason, and this reason can be summarized with one word – uncertainty. The good news is that there are possibilities to make money out of this sudden promotional hypes. Which is, however, a game for skilled investors mostly and even they don`t get it right sometimes.