$MONK Surges with Zero Cash and No Employees
So here we have $MONK, I was texted this pump as well had several e-mails blast out. From what I caught it started around the 30th of last month and has a lot of individual websites pushing for a this gold play. I took a look at the graph and I believe on Thursday, I saw the rise in volume and the slow push upwards over the last day or so from the promotion. But the reason I really want to look into this is because it’s riding up to a 6 month high break out, so I wanted to see if there was anything that could push it past it’s high and breakout to and former resistance level.
(Be sure to scroll to the way bottom to see how this stock played out over the next couple days after this investigative report!)
What I found when digging was that this company has absolutely no cash as well and prolly more important, it’s doing a financing by creating some 6mil new restricted shares… I think I might have seen in the SEC filings perhaps they we’re pumping out 10/30mil in common shares as well… It’s super early (late) for me so I’m mostly doing the run down here for my own education and to quote unquote paper trade a possible break out – because after this I’m going to sleep… I’m periodically like a freakn vampire and it takes awhile to sleep out a normal schedule! (yeah shit happens)
I would say if it would be worth the risk to short a stock so low it would most likely find itself on that side of the chopping block. I’m not a pro at all when it comes ($MONK) to understanding SEC filings, but I saw that two directors had purchased a large sum of stock for $30,000 to keep the company afloat! But the further I went on, they are basically stating, they have a super part time director / CEO type running the gig at around 30 some hours a month. They have limited equipment if not none, no employees and very little to run off at all.
I believe their biggest hit they try to play is buying some mining land for $5,000 in which they do not have enough money even to explore the possibilities of what might be there! Thusly is why I believe they are going for this financing! So over all, in my most likely incomplete and total noob opinion, this could hit and rocket over the current resistance level of .125 but I believe it will not be long lived and will most likely find itself hitting back down towards its lows if not the very day this happens, very soon after!
Also I guess this couldn’t matter maybe it does, they said they around 4,500 tons or raw ore that they are sitting on.. of course, they can’t use this ore because they are also in the market for a processing plant to even go through it. They said they “estimate” that they will receive 1 gram of gold and 30 grams of silver per ton, that comes out to something like 135,000 grams of silver and 4,500 grams of gold that they “could” have! This comes out to something like $97,000 in silver ore and only $200,000 in gold… So they are sitting on a “possible” $300,000 in raw material… IF.. they can get the financing to work out in their favor and to be able to obtain a processing plant!
With all that said, maybe it could find it’s way bumping up against .20 cents mostly from the promo but I don’t think this could last very long being they have zero cash to continue this run up of promo e-mails, they will now have to depend on the individual promoters to push this stock on their own!
I would be truly surprised to see it rocket over that with such poor charts and explanations in their SEC filings. They even claim to basically say this financing prolly might not work and this business might be doomed to fail because they can’t keep up with their operating expenses.
So I’d say for a paper trade I’ll place some cash on a possible morning gap up but I think it will be ultimately slapped down. So we got a classic diluted orange juice and a slap down the midget play here. If you don’t know what I’m talking about you can check out Timothy Sykes DVDs and his Silver Stocking Newsletter. Guess it should be fun to see where this plays. Remember this really is one of my first investigative reports I’ve done through SEC filings and watching possible break outs while using e-mail promos and news reports. I wouldn’t be ashamed to say that this could do the complete opposite! But that’s okay, I’ll learn from my failure to recognize patterns and information, thusly, learning the pattern and how to better read the information!
PS: So in the end of all this what do I think about this stock and company as a whole! I’ll take the quote from Mr. Horse from Ren + Stimpy … “No Sir I don’t like it!”.