Tuesday, December 21, 2010

The flushing sound of Nature's Call (NATC.ob)

Reader 'CHM' gave your author the headsup on a new junior exploration stage company so let's start out with the basic info. The new junior mining scam in town is named (one I still can't get over fully) Nature's Call (NATC.ob).

  • It's a scam.
  • Really, I'm not joking, it's an obvious scam. Start by visiting the paid pumper report with all the hallmarks of the scamster mining pump. BigRedLetters? Check. Use of photos of gold bullion and of the US Flag? Check. Outrageous claims for stock price upside knitted into that ever-so-special copywriter's text which Green Laser Reviews explains so well? Check. And the list continues.
  • So just to make sure we're dealing with a scam, the first thing to so is go over to the SEC filings for NATC.ob where we see that as at its last quarter (ended August 31st) NATC had assets of thirty-nine dollars. We then find out on further reading of the 10-Q that NATC got loaned $150,000 at 5% interest rate by a certain Graeme Renton to start this scamball running and secure an option on 70% of the Los Amoles property held by Yale Resources (YLL.v), details of which you can see here
  • The next thing is to note the share price action:


So the pump starts, somebody who just happened to have about nine million shares of NATC hanging around decided it was a great time to sell and not wait for the $3 price that the newsletter pump promised and made off with...let's say..$2.2m in cash from the sales (a rough call, using 9m shares at an average of 25c apiece). which is more than enough to pay for the fees to the guys behind the BS pump:
"...(Cesari Services Limited C/O Hardtman and Associates) for coverage of Nature’s Call. Cesari Services LTD paid two hundred and ten thousand dollars to marketing vendors to pay for all the costs of creating and distributing this report online"

Would it surprise you to find out that Hardtman & Assoc is based in Nevis, The West Indies? Nah, didn't think so. As for the owner of the sold shares, it could have been most anybody on board beforehand, because just before this BS pump started the shares outstanding count was expanded via a stock split from 9.05m to 190.05m

To cut a long story short this one is an awful smelly scam. Avoid like the plague.