Gediminas Jasionis
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Mexivada Mining Corp. (CVE:MNV) (PINK:MXVDF) Starts Relying on Promotions

by Gediminas Jasionis Sep 20, 2011
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9mnv_chart.pngMexivada Mining Corp. (CVE:MNV) (PINK:MXVDF) got a promoter backing up their underperforming stock, but the chances of an explosive share price rally remain slim considering the circumstances.

MNV had nothing spectacular about their stock over the past couple of days. Trading volumes had gone wild a couple times last week, but the price was stuck in a general downtrend and didn't move more than the usual volatility.

However, the stock was promoted today in a fresh newsletter from MiningProfessor.com. The same newsletter was published through Whitehotstocks.com as well. The company behind these websites got paid $25 thousand signing bonus for the services rendered to Mexivada.

Additionally, after an amendment of the original agreement, the promoter got 750 thousand stock options which can be exercised at 12 cents per share.

5mexivada_logo.jpgThe stock would require more than a 50% increase in price for these options to be in the money. It is doubtful if a short promotional newsletter published today could bring it up that far. In case the stock would actually reach that far it would create an opportunity for the promoter to exercise and sell profitably on the market, creating a pump and dump scenario.

Mexivada holds a 4.1 million market cap, which is lower than their net tangible assets of $5.6 million. This makes it pretty easy to raise the share price with enough attention from traders. On the other hand, the company had a 34.5% dilution rate over the past year, thus it is only attractive for short term speculations.

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