A very short press release from Northern Graphite Corp. (NGPHF) explained they have no idea why their stock recently experienced a price increase. Northern Graphite stock jumped from about $.70 a share to a high of nearly $1.20 in 7 days.
This modest gain certainly isn’t jaw-dropping compared to the ridiculous 24,000% gain experienced by CYNK recently… but let’s get back to the Northern Graphite story.
The TSX Venture Exchange and IIROC Market Surveillance board needed an explanation for the spike. Northern Graphite replied it is unaware of any corporate development that would adversely affect the stock price.
Here at TKO we know the reason. In fact, for anyone covering newsletter teaser promotions the answer is fairly obvious. It turns out the stock has been teased as the next big thing in the graphite market. Supposedly, according to the newsletter teaser, NGPHF is in line to take advantage of the coming lithium battery “gigafactory” from Tesla Motors (TSLA). As exhaustively explained in the newsletter sales pitch, graphite is an integral component of lithium batteries. Rumored deals, which were confirmed here, about a partnership between Tesla and Panasonic to construct the GigaFactory could have helped spark the gains too.
Anyway, as the news leaked out that NGPHF is the “graphite company” that could soar when the GigaFactory starts production got the wheels in motion for the “unusual” gains. Of course, this is just our humble opinion.
Here at TKO we have reported previously on several graphite companies that may benefit from rising graphite demand.
Currently, Northern Graphite is trading at $1.00 per share and one wonders if it isn’t long before it settles back down to recent lows. Stay tuned TKO’ers!