Portage Resources (PINK:POTG) relies on regular paid stock promotion campaigns in order to sell shares to raise funds for the company's needs of capital. A new CAD 10,000 stock promotion campaign has been launched.
Online PR News – 27-September-2011 – – Portage Resources (PINK:POTG) relies on regular paid stock promotion campaigns in order to sell shares to raise funds for the company's needs of capital. For the fiscal year ending May 31, 2012 Portage Resources will be required to raise $1.2 million for general operations, planned exploration activities and required property payments. After several weeks of silence the company issued a series of press releases announcing that it had had signed a definitive agreement for the acquisition of a majority share in a concession located near a gold production zone.
Unfortunately, the press release has no new for the investor facts, with the exception of the promises for future surveys and results. As seen on the price chart, on the news and in unison with the stock promotion, the price of POTG returned back.
Yesterday, the company made the next attempt to attract investors. POTG announced its plans to acquire 55% of the Rocas #1 concession located in the Chiquian district, Department of Ancash. One of the preconditions of the acquisition is the minimum investment of $100 thousand or 800 meters drilling within two years of all permits and registry. It looks questionable how these plans may be realized. As of the end of this May, the company reported zero current assets and zero revenues.
Opposed to the disclosed information about the well paid stock promotion, the company has no disclosures related to funds raising up to now. Even more, the released recently agreement with Nilam Resources S.A. for the acquisition of the above mentioned properties is not yet filled in the company's SEC files.
We remain skeptical about the prospects of the company. Rather than betting on the future of a company with questionable chances of survival we think this might be a good short opportunity if the stock price continues to rise due to the paid promotions campaigns. On a fundamental level as of now there are no assets that would underpin the current valuation. For daily news on the most important developments in the penny stock world check out the Penny Stock Investor Digest at http://www.pennystockinvestordigest.com/