North Springs Resources Corp. (OTC: NSRS) has resurfaced shares in the penny stock gained 34.62% to close at $0.105 on volume of almost 6 million. Its a far cry from the Harry Lappa daily commentary of February when the hot penny stock raced towards $2.
NSRS was one of the best penny stocks and the first of many pump and dump scams to hit the penny market for 2012 by the same group who are currently promoting Sunpeaks Ventures (OTC: SNPK).
Somewhat similar to what is currently happening with SNPK, NSRS made its hype by almost weekly entering into LOI’s for property leasing agreements for the exploration of gold and other metals. North Springs Resources filed their 10-Q recently which was, as expected, nothing to write home about. That said, NSRS is worth adding to the list of penny stocks to watch since there are bound to be an enormous number of greedy investors who still own the stock at prices much higher than $0.105.
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NSRS Stock Snap Shot:
Market Cap: 73.08M
(Feb 7, 2012): 1.72
(Sep 12, 2011): 0.0075
Avg Vol (3 month): 21,955,900
Avg Vol (10 day): 3,970,190
Shares Outstanding: 696.00M
According to the most recently filed 10-Q, North Springs Resources Corp. has been in an exploration stage since its formation and has not realized any revenues from operations. NSRS intends to commence operations in oil and gas exploration and production industry internationally.
They also state clearly that they have not generated any revenue to date and are subject to all risks inherent in the establishment of a new business enterprise. They also report on the status of their three properties that were used to pump the hype in the penny stock up to $1.72 after Sole Director, CEO, COO, CFO and employee of the company, Harry Lappa, did a huge forward split of the common stock while he was the sole shareholder in 2011.
In other words: There wasn’t any gold there but they did strike oil so get ready for Pump, Round II. This one could get messy.
To view the SEC filings for NSRS, click here.
Bottom Line: We love pumped penny stocks just like everyone else. The trick is not trying to catch the top and get out while there is still upwards movement in the stock price. NSRS could just be wording their 10-Q to set the tone for such a run at a second pump.
Add NSRS to your list of penny stocks to watch as this company has an extensive history in the investor community and could catch fire if rumors start flying since the majority of the confidence is in the promoters and not the company.Share