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For those that missed our blog from earlier exposing the CEO of LEXG‘s compensation of 25 million shares, you can find that here. At current prices those shares are worth over $191m, if Mr. Walsh hasn’t sold any. We felt the need to emphasize some facts about the grossly inflated market-cap.
LEXG is possibly the biggest penny stock promotion of all time, with money-flow totaling over $50 mil per day. The current market cap for LEXG is over $350 mil, now you might be wondering what the revenues were last year and if they justify the market cap at all.
Here’s a quote straight from the 10-Q.
LEXG — Results of Operations
We have been in the exploration stage since our formation on May 31, 2006 and have not yet realized any revenue from its planned operations.
We have generated no revenues since inception and have incurred $238,685 in expenses through December 31, 2010.
The following provides selected financial data about our company for the three and six month periods ended December 31, 2010 and 2009.
We had cash of $Nil as of December 31, 2010 as compared to cash of $1,965 as of December 31, 2009.
Three months ended December 31, 2010 and 2009.
$350 million dollar market-cap.
CEO compensated nearly $200m in free shares.
It’s just a matter of time before this bubble bursts.
Disclaimer: Stockhaven.com currently holds no position in LEXG. Stockhaven.com owners are not short LEXG nor have we ever shorted LEXG, instead we bought shares at approx $1.15 per share. Those shares have been sold.
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- Stock Market Authority – Elliot Dobbs Exposed: The $3.29 Million Dollar Paid Promotion of LEXG – Lithium Exploration Group
- How the CEO of LEXG Alexander Richard Walsh’s pay is potentially 8x more than the CEO of Goldman Sachs
- Is Vantage Health – VNTH – the next multi-million dollar promotion?
- Is LTUM Lithium Corp the next LEXG?
- Is GGRI Greenwood Gold Resources the next Multi-Million Dollar Penny Stock Promotion?