The Jan. 12 trade session proved highly successful for MAMMOTH ENERGY GROUP (PINK:MMTE). Not only did its share price gain 50% and rallied to its July levels, but also the amount of traded volume shot up to 214 million, which is 5 times higher than the average volume, as well as a six-month high.
Ever since MMTE made an announcement of the progress of its Chile-based lithium project back in December, the company seems to have switched into idle mode. No other news have been in sight for a whole month now. Nevertheless, MMTE stock has been heavily promoted for the last couple of days. The promotion remuneration seems to have remained undisclosed. Judging from the sudden burst both in terms of trade and price, the success generated by the promotion alone can hardly be denied.
Headquartered in New York, Mammoth Energy Group, Inc. is a developmental stage company, founded in 2006. It focuses on the development and implementation of oil and gas projects. Prior to February, 2006, the company had been operating under a different name, i.e Technigen Corporation.
In November, MMTE published its Q3 2010 report. As of Sep. 30, the company has ZERO current assets. The third quarter of 2010 has brought a net loss of $2 500. Combined with Q1 and Q2, it amounts to $65K. Given the lack of working capital, one should question the company's activity of spending investors' money on paid advertisements instead of moving forward with its projects.
The company's overall financial state provides little room for rapid future improvements. The latter requires consistent action towards a definite purpose. While a 50% gain is still quite an impressive feat, MMTE will need a lot more than a couple of promotions in order to retain this level of growth.