Yesterday was another winning session for SFEG stock, which gained 11.21% and closed at $1.19. The announced on Monday start of some gold and silver shipments to a large European client was certainly good news, but the stock is on a steep uptrend since the beginning of the month, when some other purchase orders were announced.
The start of SFEG hasty up move coincided also with another event, the next in row press release related to a television program called MoneyTV. This time, the company’s Director of Shareholder Relations will be on the air, to provide the regular insights into SFEG operations and outlooks.
MoneyTV’s business is to make and show multiple interviews with the management of featured companies for a fee of between $11,500 to $17,250. MoneyTV also offers upon request informational packages on the covered companies, but explicitly states that it does not accept stocks as payment.
Thus, it seems that MoneyTV cannot be the investor relations partner that SFEG talks about in its latest 10-Q. There, the company reports to have entered into an IR agreement in May this year, which covers a twelve-month period and requires a monthly payment of $15,000 in cash and the monthly delivery of 15,000 restricted shares of the company.
Additionally, the company has issued to the undisclosed IR firm the option to purchase 500,000 shares of the company’s stock with an exercise price of $1.30 for 250,000 shares, and an exercise price of $1.70 for the remaining 250,000 shares. There are no disclosed stock promotions for SFEG this year and the question now is if they have already began.
The fundamentals of the company show that SFEG actually owns several silver-gold properties, though could not derive of much of profit from them so far. On the opposite, over the years the company accumulated a total deficit of over $56 million, and had only “nominal revenue generating operations in the nine months ended March 31, 2010, which makes the business further dependent on additional fund raising initiatives.
