Penny Stock Circle (PSC) offers traders yet another opportunity to lose money. Their latest pick is NSU Resources, Inc. (PINK:NOST), a company with two employees, run by a CEO of dubious reputation.
PSC, having been compensated $35 thousand, would have people believe NOST is an actual investment opportunity with great potential. However, a little due diligence shows NOST is a small development stage company with very little to offer.
NOST was promoted by another notorious pumper newsletter, namely David Cohen’s Research Driven Investor. The results were unimpressive.
Why is NOST a good opportunity to lose money? For starters, at its current price NOST has a market cap of approximately $16 million. Generally that’s not an insane amount, however, for NOST that is way too much.
According to the company’s latest 10-Q, NOST’s total current assets consisted of $17 thousand in prepaid expenses; It’s total assets were $27 thousand. The company recorded $6 thousand in revenues for Q1, presumably from providing carbon solutions.
Supposedly that was the previous focus of the company. Now it has set its sights on the rare earth elements industry, although it’s not clear how NOST intends to approach this new idea with nothing but $17 thousand in prepaid expenses and $10 thousand worth of land.
Traders should exercise extreme caution with this company. The CEO and President of NOST is a guy called Luc C. Duchesne. He and Robert Williams, CTO of NOST, happen to be the sole members of the Board of Directors. There is an obvious conflict of interest.
Then again, Mr. Duchesne seems to be used to that. In April NOST entered into a sales agreement with Great Rock Development Corporation (PINK:GROC) for the sale of Gold mineral rights of some claims.
In exchange for those rights NOST got 75 million shares of common stock of GROC. Mr. Duchesne happens to be the CTO and Director of GROC, which bears the Stop sign on OTC Markets. So basically, Mr. Duchesne paid his new company $5.6 million in of shares of his previous failed venture.
GROC and NOST are not the only OTC companies the talented Mr. Duchesne is involved with. MEVT is another one, also bearing the Stop sign. Another common thing between MEVT and GROC – both companies have been pumped and now trade sporadically for next to nothing.
NOST may be the next PSC pick losing money for naive rookie investors. Hopefully, most of the people will not skip the due diligence on this little scheme.[BANNER]
