Register
Pink Sheets Markets Today:
Aug 22, 2016 total dollar volume
$315,836,217
Author:
By Borislav Tonev
Dec 21, 2012

Micron Enviro Systems, Inc. (PINK:MSVS) are Today's Microcappro.com's Winner

MSVS.png

Some companies quickly realize that it's going to be immensely hard for them to make a big profit quickly and instead of persisting and trying harder, they just decide that they are going to announce that they are looking for gold and that they are quite close to finding it. Some of them sound at least mildly credible, while others are not even worth the research. Where do Micron Enviro Systems, Inc. (PINK:MSVS) stand?

 

When we received the email from Microcappro.com, we though “Here we go again...”. Another small company with no money and no equipment trying to find gold in the strangest places where there is tonnes of it, but for some reason there is no one to dig it out. Sure enough, we looked through MSVS' latest report, and here's what we found:

 

  • no cash

  • no revenue

  • $150 thousand in gold claims

  • $631 thousand in liabilities

  • net loss for 2011 alone: $378 thousand

MSVS_logo.jpg

This time however, they mentioned that they are about to enter a merger with a UK company called Britannia Mining. The thing is, the act has not yet been ratified by the shareholders. And it will be another month before they meet to discuss the matter. Although Micron are confident about it, no one is able to guarantee if the stockholders will approve.

In the same sense, no one is able to guarantee that the Yukon mines, where Micron's claims are, contain the gold they expect. Here's where Britannia's expertise is supposed to come in. They claim that they are going to make some samples and announce whether the land is worth it. Until the results come out, all Micron and Britannia can do is keep their fingers crossed.

 

Speaking of Britannia, when (if) the merger is completed, the two companies will also merge their assets and liabilities. Unfortunately, the combined financial statement still won't inspire any confidence. According to the information that we have, Britannia currently has:

 

  • $461 in cash

  • $82 thousand in current assets

  • $259 thousand in current liabilities

 

At this point we asked ourselves “Even if there is gold in that mine, how will they finance the mining process?”. They could loan some money from other people and companies just like Micron have done in the past. Records show, however,that they haven't been able to pay them off which means that they have issued millions of warrants over the years that are now convertible at ridiculously low prices. If these shares are to be released, the profit from the warrants could be enormous. The same goes for the dilution of the current stockholders.

GLDN.png

Digging for gold will always involve the element of risk. Before investing in any of the penny stocks that are supposed to be in this business, you need to make sure that the risk is actually worth it. Ten days ago we wrote about another small gold prospecting company - Gold Dynamics Corp. (OTC:GLDN) when they were promoted by Honest Abe. Just like MSVS they had nothing more than bright promises. Predictably enough, now, we see a 53% drop since the price before their promotion.

Average Reader Price Target For MSVS:

Going Up!
0.0072

What price do you think this stock will go to?

Reader Valuation Chart

Article Comments:

Guest wrote: 3:00 pm Mar 30, 2017
it should be between in 4yr start .25 cent to start there is know movement in 4 year i have thousand and and
thousand of stock in I never sold them from 2005 even farther back you did not do any thing for your inve
stor it time to do for your investor say some
Guest wrote: 3:08 pm Mar 30, 2017
it is not msvs it is bmin

Comment: