I want to believe in this company very much--the concept stage sounds superb. If the web site they are describing rolls out in June and there are some TV spots and other advertising, it stands to reason that the stock will be well over $1/share. However, I do have a doubt or two and it begins here:
Friday February 26, 4:00 pm Eastern Time
Company Press Release
Minas Novas Gold Corp. Announces Symbol Change
A Nevada-based corporation that switches gears from gold mining to "hot web site" corporation? For right or wrong, I do not have a good feeling about that. I am somewhat new to investing (a little over a year) but I understand that Nevada-based corporations have a higher degree of being scams than other companies. I also understand that companies that dig for gold have a higher degree of being scams. Perhaps needless to say, the OTC market has in the past seen companies created for the sole purpose of increasing share price and not really to be a legitimate business.
Now with all that said, yes, I might take a speculative position in CULE just to play the odds that everything here is legit.
Even if legit, with 35 million shares outstanding (do I have that right? I understand it's 35M outstanding, 23M restricted, 12M float) the market cap for CULE is a breathtaking (IMO) $35 million right now! Wow! I would have preferred to take a chance on this one in the .25 to .50 range. Don't get me wrong, I'm sure miracles can happen. I understand that PNLK, when it hit $8/share, was at a $1 billion market cap and they were also OTC and no earnings. It was all speculation.
Could CULE go to $10/share, meaning a $350M market cap, within a month or two? I'm sure it's possible (see PNLK reference) but it strikes me as one heck of a risk, at least with what news we have.
I plan to watch this thread closely and learn from the DD posted here. I encourage those reading to post their opinions on the concerns I have raised. I would like nothing more than to be "put at ease" with my doubts, but for now I have them.
Chris |
