Santo Mining (OTC: SANP) made quite a debut today, sprinting out of the gate and claiming the top position on its first day of active trading. The company, long dormant with an ominous spread of $1 (bid) by $99 (ask), finally came to life at approximately 11:08am ET today. Commotion in the market for Santo Mining shares was fueled by a momentum-based stock promotion campaign fronted by Elliott Dobbs.
Held in limbo for days by a massive spread, by 11:08am ET today, marketmakers finally lowered the ask from $99 to $1.35. After a few prints around $1 (near the bid), it was off to the races. Emails from Stock Market Authority, the newsletter featuring Elliott Dobbs, heralded a “new pick” and featured the ticker symbol SANP and the newsletter’s impressive stock-picking track record. The corollary was an obvious yet unspoken “Buy.”
As orders flooded in, Santo Mining’s price quickly rallied as temporary demand overwhelmed the immediately available supply. Santo Mining spiked to $1.35, $1.50, and finally $1.70 before quickly reversing a few minutes later. Volatility continued throughout the next few minutes as loyal subscribers to Stock Market Authority placed orders and waited for marketmakers to execute or delay orders at their legal yet fiendishly convenient leisure. As the momentum subsided, shares consolidated into a trading range around $1.50 per share, and they closed trading near the highs of the day.
Stock Market Authority made its claim to fame a few years ago when it profiled Lithium Exploration Group (OTC: LEXG), a thinly traded over-the-counter stock around $1 per share that subsequently rallied over 1,000% while tagging prices well above $10 per share. Stock Market Authority followed-up on this victory when it profiled Raystream (OTC: RAYS), another tiny stock that subsequently rallied hundreds of percentage points while tagging highs above $2.50 per share. After its success with LEXG and RAYS, Stock Market Authority’s final pick was SEFE Inc. (OTC: SEFE), a new company which did not perform as well as previous picks but which nevertheless provided double-digit gains for early buyers.
The loyalty of subscribers to Stock Market Authority’s newsletter is evident in today’s trading in Santo Mining. Volume came into the stock the very instant emails arrived from Stock Market Authority, and dozens of chatrooms and message boards lit up with posts about Santo Mining being “the next LEXG.”
Santo Mining Corporation is an exploration and development (E&D) mining company with interests in the Dominican Republic. The company description states, “Our vision is to define deposits and extract metals from both alluvial deposits that require minimal processing and bulk-tonnage, open-pit oxide and sulfide gold deposits where poly-metallic ores with economic concentrations of precious and base metals may be extracted and transported to local or offshore processing plants and refineries.”
The stock promotion campaign led by Stock Market Authority includes a multitude of additional newsletters, many of which simply copied Stock Market Authority’s emails verbatim and forwarded them out to their own email lists. Millions of dollars and shares of Santo Mining stock were paid to compensate stock promoters for their time and expertise. One firm, Arundel Investments, Inc., disclaimed a budget of $3.85 million dollars in addition to an option to acquire 2.7 million additional shares.
The following list includes some of the newsletters that profiled Santo Mining today:
- Stock Market Authority
- Secure Penny Stocks
- Super Stock Hunter
- Smart OTC
- Stock Specialists
- Penny Stock Detective
- Penny Stock Wizard
- The Stock Detective
The market capitalization for Santo Mining exceeds $107 million as of Friday’s close, and more freely trading shares are being held in offshore accounts that are not accounted in this figure. The company will need further cash in coming months for exploring its property claims, acquiring additional holdings, and developing its resources towards monetization.