NENE, GPXM and GGRI Have News But Do They Have Viability?

New Energy Technologies (OTC: NENE), Golden Phoenix Minerals (OTC: GPXM) and Greenwood Gold Resources (OTC: GGRI) have all issued press releases this week toting various company achievements or “news.” Specifically, NENE announced more patents on their clean tech product, GPXM announced a second conference call and that their JV partner has started selling gold and silver while GGRI issued three press releases that sent the stock surging. And while there is nothing wrong with corporate self promotion, investors need to remember that small cap OTC stocks like NENE, GPXM and GGRI can make substantial moves based on one, or in the case of GGRI, three press releases or any information considered “newsworthy.” Hence, here is a closer look at NENE, GPXM and GGRI and their recent “news”:

• New Energy Technologies (OTC: NENE) is a development-stage company focused on the development of two technologies: 1) MotionPower Technology to capture the kinetic energy of moving vehicles in order to generate electricity, and 2) SolarWindow Technology that will allow see-thru windows to generate electricity via electricity-generating coatings. New Energy Technologies has recently announced that four new patent applications for their SolarWindow Technology have been filed with the US Patent and Trademark Office – bringing the total of patents for the new technology up to 10. Yesterday, New Energy Technologies rose 9.87% to $1.67 and has a 52 week trading range of $1.25 to $9.87 a share. Investors should note that New Energy Technologies has no revenues and mostly net losses of –$1,118k, -$1,197k, $318k and -$506k for each of the past four quarters respectively. However, NENE did end the last quarter with $3,649k in cash and cash equivalents.
• Golden Phoenix Minerals (OTC: GPXM) is a mining exploration, development and production company focused on mineral properties containing gold, silver and molybdenum in Nevada. Golden Phoenix Minerals recently announced a second conference call scheduled for July while its joint venture partner (Scorpio Gold) announced the first sales of gold and silver from the Mineral Ridge Gold Project in Nevada. Yesterday, Golden Phoenix Minerals rose 8.67% to $0.163 (GPXM has a 52 week trading range of $0.03 to $0.22 a share) and some investors are apparently expecting big news to be announced at the second conference call. Moreover and near the end of May, Golden Phoenix Minerals received additional funding in the form of a purchase agreement for up to $12.5 million with Lincoln Park Capital Fund, LLC. Hence, the fact that Golden Phoenix Minerals had no revenues the last quarter and losses of $1,898k, $1,503k, $3,014k and $1,370k for each of the last four quarters respectively may not be a big concern.
• Greenwood Gold Resources (OTC: GGRI) is an exploration-stage mining company focused on exploration activities on one property in Central Newfoundland, Canada. Over the last two days, Greenwood Gold Resources issued three press releases: One press release announcing the purchase of the Summer Lake Property from Candorado Ltd., another one announcing a new technical report and a third press release announcing the company will explore the potentially mineral rich Quesnel Trough. Hence, GGRI surged on Monday from $0.015 to $0.07 but yesterday the stock fell 20.60% to $0.0532 (GGRI has a 52 week trading range of $0.01 to $1.05 a share). However, Greenwood Gold Resources had no revenues the last quarter and net losses of $210k, $21k, $2k and $19k for each of the last four quarters respectively.

The bottom line: Just based on the press releases alone, NENE, GPXM and GGRI all look like potentially interesting small cap OTC companies but would be investors should examine their Edgar fillings under a microscope before considering an investment in any one of them.