Neither the paid promotion,nor the official press release succeeded in giving a boost to Viking Minerals Inc. (OTC:VKML) on the stock market yesterday, which makes any potential break out today highly unlikely.
If there is one thing that the $2,250 worth advertising campaign actually managed to do, it is the considerable volume spike as more than 8.8 million shares of VKML stock changed hands during the latest trading session, setting an all-time record for the company. The huge turnover, in turn, caused VKML to lose 8.88% of its value, closing at $0.154 per share, at a stone’s throw away from the rock-bottom hit on Oct. 28.
What triggered the investors’ awareness program is a brand-new official press release. As it is, the company seized an opportunity to provide a positive update on the drilling program which it has been executing on its Nevada-based Dolly Varden Claims. If this were not enough, a microcap researcher has just included VKML, together with a handful of other penny stocks, on the spotlight by spreading a free newsletter alert among investors.
With regard to its financials, the company has stuck to a transparent information profile by filing regular reports with the SEC. The latest 10-Q form, which covers the three-month period ended Jun. 30, 2011, discloses the following basic figures among others:
- zero cash and total lack of assets;
- negative working capital of approx. $70 thousand;
- zero revenue and a quarterly net loss of $11 thousand.
Obviously, VKML’s dire financial state is not invisible to the naked eye, which pretty much explains the generally negative trend that can bee seen on the six-month chart. The only light at the end of the tunnel is a potential positive development of the Dolly Varden mineral property. As soon as possible. Otherwise, investors’ trust would not last forever.
