Inca One Gold Turns Its Wheels

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Inca One Gold Corp. (INCAF) is yet another one of those tiny stocks milling around in precious metals mining. It trades under other tickers but the US listed one is the only one I need to see. There isn't much to see here anyway.

The CEO's bio describes precisely zero experience in mineral processing. Some of these people appear to have mining backgrounds, so maybe they found their way down a hole once in a while. A couple of the people listed here also have zero experience in metallurgy and their bios don't even describe their jobs at Inca One Gold. That just about takes the cake. Investors have cast their lot with people who don't tell the public what they do all day.

Inca One Gold's unaudited quarterly financial statements dated July 31, 2015 show CAD $236K cash on hand and a net loss of -$581K. They burn through the equivalent of their cash reserves in less than a month at that rate. The company does have revenue but COGS eats up a high percentage, and corporate expenses are almost three times their gross margin. This is one very poorly run turkey. Read their own choice of words "material uncertainty" in Note 1 about their going concern prospects in case you don't believe it's a turkey. The shareholders' equity deficit of $15.5M means it has always been a turkey.

The stock's EPS is a negative, losing -US $0.06/share LTM. The closing share price for INCAF on January 18, 2016 was $0.06/share at zero traded volume. That means the company loses the equivalent of its entire public value for an investor who buys now and expects to hold for a year. Some sucker who owns it now and can't sell would love to find someone even dumber. Any trading volume higher than zero means another sucker is born.

Disclosure: No position in INCAF at this ...

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