Ekaterina Zelenkova
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Does Mexivada Mining Corp. (CVE:MNV), (PINK:MXVDF) Stock Have Potential?

by Ekaterina Zelenkova Feb 9, 2011
MNV_price_shart.jpgYesterday, as opposed to the declared goal of its promoter, Mexivada Mining Corp. (CVE:MNV), (PINK:MXVDF) stock returned back on two markets as rapid as it skyrocketed on the day of its promotion.

On the TSX Venture Exchange, MNV lost almost 9% of its value in a heavy trading volume. The tripled average daily share turnover was a signal that investors are still not convinced to overcome the share price increase of half a cent in order to overtake the 52-week high.

On the American OTC market, MXVDF plunged down by 6.21%. The number of bids and deals on MXVDF was recordable for the last 52 weeks.

Last Friday, Mexivada Mining Corp. made an update on its mineral projects. Though released by the company major progress on its flagship mineral properties, the same day the sellers prevailed on two stock exchanges.

This Monday, the miracle happened. The company's statement that alluvial gold mining operations are planned to start up in the 3rd Quarter of this year and could be "putting Mexivada into the camp of small gold mine producers", and a stock promotional update, finally rushed the stock.

MNV_fromthe_site.pngThe same day, the stock promoter that is receiving a good compensation for the service, declared in the e-mail to present and potential investors of MNV and MXVDF: "Our goal is NOT to have the stocks we profile rocket to the moon and then collapse."

Looks like the hot stock alerts and the news gave impetus to a sharp and fast share price soar in a day. However, yesterday investors appreciated a share price return back. Opposed to the above mentioned goal, in a day time the share price declined on a skyrocketing trading volume. Maybe, one of the possible reasons was investor uncertainty towards the fair price of MNV.

Mexivada Mining Corp. is a mineral exploration company working in the field of identifying, acquiring, mining, and joint venturing high-grade Gold-Silver, Tellurium, Diamond, and Rare Metal exploration projects in Mexico, Nevada, Canada and Africa.[BANNER]

Though the big number of projects assumes big numbers in the assets part of the company's balance sheet, as of yesterday MNV had market value of $6.83 million. In its last financial statements the company reported:
  • Accumulated deficit of $8,4M
  • Working capital deficiency of $120K
  • Mineral properties valued at $154K.
Despite the released this week intentions to be a producer this year, at present the company has not yet determined whether its mineral properties contain economically recoverable reserves. Maybe, the most valuable asset of Mexivada Mining Corp. is the value of its total liabilities, amounting only $254K.

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