Valmie Resources Inc (OTCBB:VMRI) became a target of promotional emails in mid-March. It initially resulted in price surge from $2 per share to a high of over $3.20. However, soon it halted the upward trend and started to decline. It posted its last green session two weeks ago and from there on has declined more than 60%. In yesterday’s trading session, the stock declined more than 24% to close the trading session at $1.06. The decline came at a share volume of 111,529 compared to average share volume of 53,569. The high for the day was $1.30 and low was $1.02.

The pumps

The promotional outfits are unfazed by the recent price momentum and they are still busy sending the promotional emails. Recently Valmie announced that it is going to be present in the Unmanned Systems 2015 event and requested potential acquisition candidates to get in touch with the management team so that they can discuss future associations. However, it doesn’t seem to have any impact on investors and there is every reason for it.

The performance

Valmie when was trading at more than $3 a share, its market capitalization stood around $180 million mark. The shareholders at that time were expected strong financial numbers from the quarterly report for the period ended February 28. They were disappointed when the company reported $5,277 in cash, total assets of $31,127 and $349,746 as total liabilities. The company recorded no revenue since inception, and the quarterly net loss came at $135,320.

The red flag

The SEC filings disclose that almost 59 million shares of Valmie’s common stock were sold for under $10,000. Recently, the company converted $383,927 worth of debt into 3.8 million shares of common stock at a conversion price of $0.10 per share. The financials and the conversion clearly indicate the problems with the company.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg,,, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.