The one-month awareness campaign of one of the promoters is worth $40,000 in cash, but the disclosure does not mention who paid for the online marketing service. Another promoter says to have received $65,000 for an IR contract from a third party named Flip Ventures LLC. Hopefully, that third party will not flip the shares it possibly owns too quickly, and end up prematurely RZOR victorious rise before it has realized its “astronomical” upside potential. A third promoter also got $15,000, from the same Flip Ventures LLC.
The campaign had an excellent start though, with a flying up volume of almost 2 million shares yesterday, the average being only about 66,000. The price appreciation is also impressive. Only in yesterday’s tradings session RZOR stock added 46.88% to its value, closing at 47 cents for a share. Together with Wednesday session, the stock has almost tripled its value and technically the upside potential looks actually present.
Unfortunately, Razor Resources fundamental potential is noticed only in its press releases, announcing first gold shipments and a “recurring revenue stream” from its Clavo Rico Mine in Honduras. Its balance sheet as of end-October 2010 shows zero cash and only long-term assets consisting of some investments made by the company and valued at $735,000. On the other hand, RZOR need some $100,000 to cover its short-term liabilities, another $870,000 to pay out its long-term debt, and another half a million to proceed with its business plan this year.
On should not rule out the chance that recurring revenues and some operational activity actually occur in the company’s subsequent financial reports, but until they are out it looks like only the stock promotions will try to increase and sustain traders’ interest.
