I think this is what happened - GXS had coal discovery
- The GXS discovery was leaked out before they revealed it to the public
- NAG and many other coal play wannabes got the info
- NAG searched the area within 200 miles radius of GXS’ discovery to acquire a piece of land
- Adamas knew remotely about GXS’ discovery because they are in the same exploration industry and the discovery is in the local area. Adamas didn’t believe they own high grade coal property
- NAG approached Adamas to negotiate and offered very little cash and free shares to buy one piece of land from Adamas.
- NAG’s acquisition cost is real cheap: $7500+ free shares, according to NAG’s Q2 statement, the total acquisition cost to date is $7500+135000 shares
- NAG started a promotional campaign by calling retail investors, advertising and pumping in stockhouse
- More and more retail investors joined the run-up when they saw the SP moving up steadily.
- NAG halted the stock trading because they received the comfort letter. It is really unusual to halt a stock by that reason.
- Charles, Bruce and other insiders began to sell a lot of option shares, for example, Charles sold 0.12 cents option shares at 0.62 cents.
- IR told callers that they don’t know when NAG can have its drill permit
- SP plunged and Zeta was invited to post on NAG with TA analysis.
- ……
So far, NAG still hasn’t post its coal property map on its official website. It was said that the land is 100 miles away from GXS’ discovery
IR tell callers that they don’t know when the company will receive the permit
Drill permit would really cost a fortune comparing to the initial dirty cheap land acquisition cost: $7500 + free shares
It is up to you to believe that NAG is a real coal play.