Gediminas Jasionis
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Greenlight Resources Inc (CVE:GR) (PINK:PRZCF) Mixes News And Stock Promotion

by Gediminas Jasionis Oct 20, 2011
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gr_chart.pngGreenlight Resources Inc (CVE:GR) (PINK:PRZCF) said today the company found new gold targets on one of their properties. This announcement was preceded by a promotional newsletter which contained only general information about Greenlight.

GR said in a press release that drilling results from the initial prospecting and sampling program showed two new gold discoveries followed by confirmation of high grade silver and base metal targets on Keymet Gold Silver and Base Metal property in New Brunswick. Most notable findings indicate 3g/t Au, 549 gpt Ag, 2.35%Cu, 33.90% Pb and 22.90% Zn over small lengths. The results are not final though and a more complete analysis is still ongoing.

The publication of this update came shortly after GR stock was promoted through a newsletter that surfaced yesterday evening.

On October 19, SmallCapVoice.com issued a newsletter which simply profiled the company. The size of compensation they have received for this service suggests their efforts won't go past that. On their website Small Cap Voice discloses to have received $5 thousand from a third party on September 28 and will be providing promotion services for 30 days since.

greenlight.jpgThe company is presented as holding a promising portfolio of properties and praised for their partnership agreements. However, being involved in 4 projects, the company is not making money from any of them.

Greenlight holds $3.8 million market cap and have around $1.9 million in net tangible assets, which actually leaves very little space for possible price appreciation. Exploration stage companies like this one usually hold a P/B of 1.5 to 2.

Another troublesome thing is that most of their assets' value comes from properties, and the business actually runs comparatively low on cash.

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