USA Graphite Inc. (OTC: USGT) On the Hunt for a Graphite Payload!
Another Graphite Promo with no fundamentals.
When the price of Graphite exploded from under $500 USD per ton back in 2004 to today's prices of over $2,500 USD per ton I knew it was only a matter of time before a number of Penny Stocks jumped on the bandwagon; quick to associate themselves with the precious metal.
USA Graphite Inc. (OTC: USGT) is the latest Graphite Penny Stock to hit the OTCBB in recent months with little fundamentals other than the multi-million dollar stock promotion to back it up. USGT started trading in the first week of November at around $0.40 per share and has been slowly rising since seeing highs near $1. Since then the stock has collapserd as predicted.
With a documented $800,000 promotional budget; investors were speculating that this one goes higher short term. They were correct of course, just as we were correct USGT would crash and burn when the promo dollars ran out.
USA Graphite is focused on the acquisition, exploration and development of world-class graphite properties in North America. USA Graphite has holdings in Nevada, offering considerable potential for the discovery and development of large flake, high-grade graphite, whereby mineralization is exposed at surface and clearly evident at economic depths.
USGT follows a number of Graphite exploration Penny Stocks in recent months that moved up in the short term on heavy promotion but ultimately dropped lower including National Graphite Corp. (OTC: NGRC) and Graphite Corp (PINK: GRPH)
Conclusion: Currently trading at a market valuation approaching $100 million USGT has minimal assets and $0 revenues to date. The stock did make steady gains as a result of the aggressive pr campaign by the Company coupled with the multi-million dollar stock promotion designed to cash in on the Graphite association. Once this promotion ends USGT and its $100 million valuation will be history.
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USA Graphite Inc.
SYMBOL: OTC: USGT
Shares Outstanding 169,400,000
Market Cap: $83,006,000
USA Graphite Inc. (OTC: USGT) was incorporated in the State of Nevada on December 13, 2005 under the name PTM Publications Incorporated. They were formed to engage in the magazine publishing business in Malaysia. In January of 2010, their management decided to abandon the company’s business in search of other opportunities.
On June 17, 2010, the company filed Articles of Merger with the Nevada Secretary of State to change the name of our company to “Magnum Oil Inc.” to be effected by way of a merger with its wholly-owned subsidiary Magnum Oil Inc, which was created solely for the name change. On April 11, 2012, they filed Articles of Merger with the Nevada Secretary of State to change the name of our company to “USA Graphite Inc.”, to be effected by way of a merger with its wholly-owned subsidiary USA Graphite Inc., which was created solely for the name change.
Formerly=Magnum Oil, Inc. until 4-2012
Formerly=PTM Publications Inc. until 7-2010
Capital Change=shs increased by 22 for 1 split Pay date=05/24/2010.
Capital Change=shs increased by 3.5 for 1 split Ex-date=04/17/2012.
Below is Screen Shot of WallStreetAdvisor Disclaimer: $800,000 compensation for USGT
According to the promotional material:
9 Outstanding Reasons Why USA Graphite (USGT) Could Be The Minerals Play Of The Century
1 – HUGE DEMAND… Traditional demand for graphite in the steel and automotive industries is growing 5% annually, and graphite prices have tripled. New applications such as heat sinks in computers, lithium-ion batteries, fuel cells, and nuclear and solar power are all big users of graphite.
2 – MISSION CRITICAL… Graphite's criticality and potential scarcity has been recognized by both the United States and the European Union, which have each declared graphite a supply-critical mineral.
3 – HYBRID CARS… The U.S. Geological Survey noted in 2010 that "large-scale fuel cell applications are being developed that could consume as much graphite as all other uses combined."
4 – CHINA GIVETH AND CHINA TAKETH AWAY… New uses for graphite are beginning to place substantial demands on existing production—and over 70% of that production is from China, which is no longer selling this resource cheaply to the rest of the world as the country's easy-to-mine, near-surface deposits are becoming exhausted.
5 – THE THREE Ps… The rules for investing in junior resource companies such as USGT revolve around property, potential and price. USA Graphite meets these Ps to a T… its Nevada claims could hold tons of high grade graphite… USGT’s shares are priced under $1
6 – HEAD START… USGT has the jump on many established graphite miners because of its foresight to mine American graphite… USA Graphite’s Nevada mines could hold thousands of tons of the most desirable high-grade graphite.
7 – GRAPHENE, THE WORLD OF TOMORROW TODAY… Graphene, made from high grade graphite, may well be the most important discovery in the past 200 years. It could be on track to make most every product we use today suddenly obsolete. Graphene could lead to cancer cures… cellphone batteries that charge in minutes… flat screen TVs that are as thin as wax paper… batteries that power cars for thousands of miles, not just a few hundred… faster computers and Internet connections that are unimaginable, even by today’s standards… energy independence… the list goes on and on.
8 – FLAKE… A single ultra-thin sheet of graphene, stretched over a coffee cup could support the weight of an elephant balancing on a pencil. But, making a substance that is not only the thinnest material in the world, but also one of the strongest and hardest requires super-pure ingredients. For graphene that means flake graphite… such as USGT could have by the ton in Nevada USA!
9 – MULTIPLY YOUR MONEY BY 20X IN NEAR TERM… That potential is exciting, and it’s strongly possible. Make no mistake, USA Graphite (USGT) is a startup company. It’s not a sure thing. But it is a highly likely prospect. At the very least, the enviable land position in Nevada means that USGT has already amassed immensely valuable assets. Now USGT’s job is to explore and mine its Blue Wing Mountains Property that could hold a multi-million tons lode of high-grade graphite… its first action there could quickly yield 110,000 tons… that could send USGT’s stock from under $1 to $8.04 or more in the next year… and what could be as much as 100 times more… $82 o r more… if for people w ho like to hang on to good things.