Tara Minerals: Nearly Worthless Stock Being Promoted
July 23, 2011
Tara Minerals (TARM.OB) is a company worth at most $20M (likely much less), but boasts a market capitalization higher than $100M. How did a company that has only raised $6.7M from the sale of common stock since its inception (see the first line under cash flows from financing activities in the most recent 10-Q) turn that into more than $100M in market capitalization? The company has paid millions of dollars in stock for expenses, most notably IR services, in an effort to artificially bolster the stock price.
