Big Bear Mining Corp. (OTC:BGBR.OB) Flashes on the Trading Horizon and Raises Stock Promoters’ Compensation
26 Apr 2010

Big Bear Mining Corp. (OTC: BGBR.OB) has suddenly flashed on the trading horizon. The stock started climbing since mid March based on both press releases and stock promotions.

Although the company filed information about issuing its 779,000 shares at $ 0.1 as early as March 17, 2006, the trading history for the company available through OTCBB is short – only since mid March this year. This limits somewhat the possibilities offered by technical analysis.

More insights into the trading pattern can be gained by exploring the compensation offered to stock promotion companies. Big Bear Mining Corp. is pushing hard on stock promotion by offering  incentives to four different stock promotion companies, gradually increasing the compensation from $10,000 to $ 16,000; $ 22,000 and $57,000, last two paid by a third party. However, the increase in promotion compensation was not directly reflected in a continuous upward trend for the stock.

The promotion pressure is prompted by the financing needs for the next 12 months as announced by the company to be estimated at $ 660,000, comprising mainly of future property acquisitions and exploration costs. Property acquisitions have not been a major focus in the company strategy so far as the only assets reported as of December 31, 2009 are $ 1,317 in cash. On April 1st the company announced that it has entered into $1.4 mln share financing agreement with securities not to be registered under the Securities Act of 1933 and not to be offered or sold in the United States.

Who are the investors willing to check if the money they put in this company at this stage would be actually invested in property acquisitions?

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