LITHIUM EXPLORATION GROUP LEXG S W
April 28, 2011 - 9:19am EST by
unkown345
2011 2012
Price: 7.65 EPS $0.00 $0.00
Shares Out. (in M): 48 P/E 0.0x 0.0x
Market Cap (in $M): 367 P/FCF 0.0x 0.0x
Net Debt (in $M): 0 EBIT 0 0
TEV ($): 367 TEV/EBIT 0.0x 0.0x
Borrow Cost: NA

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Description

In my opinion LEXG is greatly overpriced.  It is inconceivable to me that a company with no cash, YES, no cash and little in the way of assets could have an approximate $375 million market capitalization.

LEXG appears to be a highly promoted bulletin board stock with little to no assets and questionable prospects. 

 

Someone (GEKKO INDUSTRIES) paid $3,296,800 for this stock to be promoted......... Who do you think is selling all the stock that is trading?

http://www.thestockdetective.com/aol/

IMPORTANT NOTICE AND DISCLAIMER: This featured company sponsored advertising issue of TheStockDetective.com (TSD) does not purport to provide an analysis of any company's financial position, operations or prospects and this is not to be construed as a recommendation by TSD or an offer or solicitation to buy or sell any security. Lithium Exploration Group, (LEXG), the company featured in this issue, appears as paid advertising, paid by Gekko Industries to provide public awareness for LEXG. Gekko Industries holds restricted shares of common stock of LEXG. Gekko Industries has approved and signed off as "approved for public dissemination" all statements made herein regarding Lithium Exploration Group's history, assets, technologies, current as well as prospective business operations and industry information. TSD and Circuit Media (CM) have used outside research and writers using public information to create the advertisement coming from TSD about LEXG. Although the information contained in this advertisement is believed to be reliable, TSD and CM makes no warranties as to the accuracy of any of the content herein and accepts no liability for how readers may choose to utilize the content. Readers should perform their own due-diligence, including consulting with a licensed, qualified investment professional or analyst. Further, readers are strongly urged to independently verify all statements made in this advertisement and perform extensive due diligence on this or any other advertised company. TSD and CM are not offering securities for sale nor do they hold any stock positions of LEXG. An offer to buy or sell can be made only with accompanying disclosure documents and only in the states and provinces for which they are approved. Many states have established rules requiring the approval of a security by a state security administrator. Check with http://www.nasaa.org or call your state security administrator to determine whether a particular security is licensed for sale in your state. Many companies have information filed with state securities regulators and many will supply investors with additional information on request. CM has received and managed a total production budget of $3,296,800 for this advertising effort and will retain any amounts over and above the cost of production, copywriting services, mailing and other distribution expenses, as a fee for its services. TSD is paid $50,000 as an editorial fee from CM and also expects to receive new subscribers as a result of this advertising effort. *More information can be received from Lithium Exploration Group's investor relations firm, or at Lithium Exploration Group's website http://lithiumexplorationgroup.com. Further, specific financial information, filings and disclosures as well as general investor information about publicly traded companies like Lithium Exploration Group, advice to investors and other investor resources are available at the Securities and Exchange Commission website www.sec.gov and www.nasd.com. Any investment should be made only after consulting with a qualified investment advisor and after reviewing the publicly available financial statements of and other information about the company and verifying that the investment is appropriate and suitable. Investing in securities is highly speculative and carries a great deal of risk especially as to new companies with limited operations and no history of earnings. The information contained herein contains forward-looking information within the meaning of section 27a of the Securities Act of 1993, as amended, and section 21e of the Securities Exchange Act of 1934, as amended, including statements regarding expected growth of the featured company. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act, TSD notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the Company's actual results of operations. Factors that could cause actual results to differ include the size and growth of the market, the Company's ability to fund its capital requirements in the near term and in the long term; pricing pressures, technology issues etc.

 

My back hurts from laughing.....

@PrePromoStocks Richard Appel, Jr.

My back hurts from all these 3rd tier stock promoters piggybacking my $LEXG trade.

http://twitter.com/#!/PrePromoStocks/status/51022099392905216

 

Current                    Cash and cash equivalents $  -  

 

Yes, that is less cash than in your coin jar.  It appears they spent very little of what they had on their website.......some of which wouldn't even load when I clicked on it.

http://lithiumexploration.com/page6.html

 

 

This seemed so simple I couldn't even make myself do all the work I normally do.  That being said, let's get to the facts....

LEXG has about 50 million shares out (pro forma for issuances post their 10q and "earn outs".

They sold stock recently at $1!

You can read the streetsweeper which does provide some more (unverified) details.

http://thestreetsweeper.org/undersurveillance.html?i=1781

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 47,625,000 common shares issued and outstanding as of February 21, 2011.

3. Capital Stock - Continued

Of these shares, 30,000,000 were issued to directors and officers of the Company and 17,375,000 were issued to independent investors. There are no preferred shares outstanding. The Company has no stock option plan, warrants or other dilutive securities.

Stock Issuance

On January 27, 2011, the Company issued 250,000 shares of common stock in a private placement to two unrelated off-shore investors at $1 per share for total cash proceeds of $250,000.

The Company has evaluated subsequent events from December 31, 2010 through the date of this report, and determined there are no additional items to disclose.

Prospects don't seem so good.......

6. Due to Related Party

As of December 31, 2010 and June 30, 2010, the Company was obligated to a director, who is also an officer and stockholder, for a non-interest bearing demand loan with a balance of $47,537 and $36,799, respectively. The Company plans to pay the loan back as cash flows become available.

7. Going Concern and Liquidity Considerations

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. As at December 31, 2010, the Company had a working capital deficiency of $139,185 and an accumulated deficit of $238,685. The Company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the next twelve months.

The ability of the Company to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue operations, explore and develop the mineral properties and the discovery, development and sale of ore reserves.

In response to these problems, management intends to raise additional funds through public or private placement offerings.

These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Assets

Here is what they bought ... 60% of something ....for not a lot...

 

8.      Subsequent Events

Salta Province Claims

By agreement dated January 18, 2011, the Company entered into a Purchase Option Agreement to acquire an undivided 60% interest in certain mineral claims known as the Salta Agua Claims located in Salta Province, Argentina.

To earn an undivided 60% interest in the Property, the Company must:

 

i)

pay to the Optionor a total of US$375,000 as follows:

 

 

a)

US$25,000 upon execution of the agreement;

 

b)

US$50,000 within thirty days after the effective date;

 

c)

US$100,000 on or before January 18, 2012;

 

d)

US$100,000 on or before January 18, 2013;

 

e)

US$100,000 on or before January 18, 2014;

 

 

ii)

allot and issue to the Optionor, up to a total of 1,000,000 common shares as follows:

 

 

a)

250,000 Shares within thirty days after the effective date;

 

b)

250,000 Shares on or before January 18, 2012;

 

c)

250,000 Shares on or before January 18, 2013;

 

d)

250,000 Shares on or before January 18, 2014;

 

 

iii)

incur Exploration Expenditures of not less than a cumulative total of US$4,000,000 as follows:

 

 

a)

US$250,000 on or before January 18, 2013;

 

b)

US$500,000 on or before January 18, 2014;

 

c)

US$1,250,000 on or before the January 18, 2015;

 

d)

US$2,000,000 on or before January 18, 2016.

Upon completion of the above terms, the Company will acquire the remaining 40% interest in the Property by paying the sum of $6,000,000, payable either in a lump sum due 180 days later, or by paying $3,000,000 at such time and $3,000,000 plus interest at the rate of LIBOR plus 5% interest 12 months later.

Upon the commencement of Commercial Production, the Company will pay to the Optionor a Royalty of 3% Gross Returns.

 

Here is their office space

http://www.gpe1.com/view-document/hayden-professional-park.html

Here is their 10q

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7881371

Here is their office

http://maps.google.com/maps?q=%23+3200+N.+Hayden+Road+%23+Suite+300+%23+Scottsdale,+AZ,+8525&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&um=1&ie=UTF-8&hq=&hnear=3200+N+Hayden+Rd+%23300,+Scottsdale,+AZ+85251&gl=us&ei=iLe4TcyjEIfItweqmsTeBA&sa=X&oi=geocode_result&ct=title&resnum=1&ved=0CBUQ8gEwAA

I believe this is one of the principals Alex Koretsky

http://images.businessweek.com/ss/06/10/bestunder25/source/6.htm

 

Disclaimer:

 

 The author of this posting and related persons or entities ("Author") may currently hold a short position in this security. The Author makes no representation that it will continue to hold positions in the securities of LEXG.  In fact the Author is likely to buy or sell long or short securities of this issuer and makes no representation or undertaking that Author will inform Value Investors Club, the reader or anyone else prior to or after making such transactions.  Additionally, because the Author has these current positions the reader may assume that the Author is biased in favor of his investment view and may also be mistaken.  While the Author has tried to present facts it believes are accurate, the Author makes no representation as to the accuracy or completeness of any information contained in this note.  The reader agrees not to invest based on this note and to perform his or her own due diligence and research before taking a position in securities of this issuer.  Reader agrees to hold Author harmless and hereby waives any causes of action against Author related to the above note.

 

Catalyst

 
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    Description

    In my opinion LEXG is greatly overpriced.  It is inconceivable to me that a company with no cash, YES, no cash and little in the way of assets could have an approximate $375 million market capitalization.

    LEXG appears to be a highly promoted bulletin board stock with little to no assets and questionable prospects. 

     

    Someone (GEKKO INDUSTRIES) paid $3,296,800 for this stock to be promoted......... Who do you think is selling all the stock that is trading?

    http://www.thestockdetective.com/aol/

    IMPORTANT NOTICE AND DISCLAIMER: This featured company sponsored advertising issue of TheStockDetective.com (TSD) does not purport to provide an analysis of any company's financial position, operations or prospects and this is not to be construed as a recommendation by TSD or an offer or solicitation to buy or sell any security. Lithium Exploration Group, (LEXG), the company featured in this issue, appears as paid advertising, paid by Gekko Industries to provide public awareness for LEXG. Gekko Industries holds restricted shares of common stock of LEXG. Gekko Industries has approved and signed off as "approved for public dissemination" all statements made herein regarding Lithium Exploration Group's history, assets, technologies, current as well as prospective business operations and industry information. TSD and Circuit Media (CM) have used outside research and writers using public information to create the advertisement coming from TSD about LEXG. Although the information contained in this advertisement is believed to be reliable, TSD and CM makes no warranties as to the accuracy of any of the content herein and accepts no liability for how readers may choose to utilize the content. Readers should perform their own due-diligence, including consulting with a licensed, qualified investment professional or analyst. Further, readers are strongly urged to independently verify all statements made in this advertisement and perform extensive due diligence on this or any other advertised company. TSD and CM are not offering securities for sale nor do they hold any stock positions of LEXG. An offer to buy or sell can be made only with accompanying disclosure documents and only in the states and provinces for which they are approved. Many states have established rules requiring the approval of a security by a state security administrator. Check with http://www.nasaa.org or call your state security administrator to determine whether a particular security is licensed for sale in your state. Many companies have information filed with state securities regulators and many will supply investors with additional information on request. CM has received and managed a total production budget of $3,296,800 for this advertising effort and will retain any amounts over and above the cost of production, copywriting services, mailing and other distribution expenses, as a fee for its services. TSD is paid $50,000 as an editorial fee from CM and also expects to receive new subscribers as a result of this advertising effort. *More information can be received from Lithium Exploration Group's investor relations firm, or at Lithium Exploration Group's website http://lithiumexplorationgroup.com. Further, specific financial information, filings and disclosures as well as general investor information about publicly traded companies like Lithium Exploration Group, advice to investors and other investor resources are available at the Securities and Exchange Commission website www.sec.gov and www.nasd.com. Any investment should be made only after consulting with a qualified investment advisor and after reviewing the publicly available financial statements of and other information about the company and verifying that the investment is appropriate and suitable. Investing in securities is highly speculative and carries a great deal of risk especially as to new companies with limited operations and no history of earnings. The information contained herein contains forward-looking information within the meaning of section 27a of the Securities Act of 1993, as amended, and section 21e of the Securities Exchange Act of 1934, as amended, including statements regarding expected growth of the featured company. In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act, TSD notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the Company's actual results of operations. Factors that could cause actual results to differ include the size and growth of the market, the Company's ability to fund its capital requirements in the near term and in the long term; pricing pressures, technology issues etc.

     

    My back hurts from laughing.....

    @PrePromoStocks Richard Appel, Jr.

    My back hurts from all these 3rd tier stock promoters piggybacking my $LEXG trade.

    http://twitter.com/#!/PrePromoStocks/status/51022099392905216

     

    Current                    Cash and cash equivalents $  -  

     

    Yes, that is less cash than in your coin jar.  It appears they spent very little of what they had on their website.......some of which wouldn't even load when I clicked on it.

    http://lithiumexploration.com/page6.html

     

     

    This seemed so simple I couldn't even make myself do all the work I normally do.  That being said, let's get to the facts....

    LEXG has about 50 million shares out (pro forma for issuances post their 10q and "earn outs".

    They sold stock recently at $1!

    You can read the streetsweeper which does provide some more (unverified) details.

    http://thestreetsweeper.org/undersurveillance.html?i=1781

     

    Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 47,625,000 common shares issued and outstanding as of February 21, 2011.

    3. Capital Stock - Continued

    Of these shares, 30,000,000 were issued to directors and officers of the Company and 17,375,000 were issued to independent investors. There are no preferred shares outstanding. The Company has no stock option plan, warrants or other dilutive securities.

    Stock Issuance

    On January 27, 2011, the Company issued 250,000 shares of common stock in a private placement to two unrelated off-shore investors at $1 per share for total cash proceeds of $250,000.

    The Company has evaluated subsequent events from December 31, 2010 through the date of this report, and determined there are no additional items to disclose.

    Prospects don't seem so good.......

    6. Due to Related Party

    As of December 31, 2010 and June 30, 2010, the Company was obligated to a director, who is also an officer and stockholder, for a non-interest bearing demand loan with a balance of $47,537 and $36,799, respectively. The Company plans to pay the loan back as cash flows become available.

    7. Going Concern and Liquidity Considerations

    The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. As at December 31, 2010, the Company had a working capital deficiency of $139,185 and an accumulated deficit of $238,685. The Company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the next twelve months.

    The ability of the Company to emerge from the exploration stage is dependent upon, among other things, obtaining additional financing to continue operations, explore and develop the mineral properties and the discovery, development and sale of ore reserves.

    In response to these problems, management intends to raise additional funds through public or private placement offerings.

    These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

     

    Assets

    Here is what they bought ... 60% of something ....for not a lot...

     

    8.      Subsequent Events

    Salta Province Claims

    By agreement dated January 18, 2011, the Company entered into a Purchase Option Agreement to acquire an undivided 60% interest in certain mineral claims known as the Salta Agua Claims located in Salta Province, Argentina.

    To earn an undivided 60% interest in the Property, the Company must:

     

    i)

    pay to the Optionor a total of US$375,000 as follows:

     

     

    a)

    US$25,000 upon execution of the agreement;

     

    b)

    US$50,000 within thirty days after the effective date;

     

    c)

    US$100,000 on or before January 18, 2012;

     

    d)

    US$100,000 on or before January 18, 2013;

     

    e)

    US$100,000 on or before January 18, 2014;

     

     

    ii)

    allot and issue to the Optionor, up to a total of 1,000,000 common shares as follows:

     

     

    a)

    250,000 Shares within thirty days after the effective date;

     

    b)

    250,000 Shares on or before January 18, 2012;

     

    c)

    250,000 Shares on or before January 18, 2013;

     

    d)

    250,000 Shares on or before January 18, 2014;

     

     

    iii)

    incur Exploration Expenditures of not less than a cumulative total of US$4,000,000 as follows:

     

     

    a)

    US$250,000 on or before January 18, 2013;

     

    b)

    US$500,000 on or before January 18, 2014;

     

    c)

    US$1,250,000 on or before the January 18, 2015;

     

    d)

    US$2,000,000 on or before January 18, 2016.

    Upon completion of the above terms, the Company will acquire the remaining 40% interest in the Property by paying the sum of $6,000,000, payable either in a lump sum due 180 days later, or by paying $3,000,000 at such time and $3,000,000 plus interest at the rate of LIBOR plus 5% interest 12 months later.

    Upon the commencement of Commercial Production, the Company will pay to the Optionor a Royalty of 3% Gross Returns.

     

    Here is their office space

    http://www.gpe1.com/view-document/hayden-professional-park.html

    Here is their 10q

    http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7881371

    Here is their office

    http://maps.google.com/maps?q=%23+3200+N.+Hayden+Road+%23+Suite+300+%23+Scottsdale,+AZ,+8525&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&um=1&ie=UTF-8&hq=&hnear=3200+N+Hayden+Rd+%23300,+Scottsdale,+AZ+85251&gl=us&ei=iLe4TcyjEIfItweqmsTeBA&sa=X&oi=geocode_result&ct=title&resnum=1&ved=0CBUQ8gEwAA

    I believe this is one of the principals Alex Koretsky

    http://images.businessweek.com/ss/06/10/bestunder25/source/6.htm

     

    Disclaimer:

     

     The author of this posting and related persons or entities ("Author") may currently hold a short position in this security. The Author makes no representation that it will continue to hold positions in the securities of LEXG.  In fact the Author is likely to buy or sell long or short securities of this issuer and makes no representation or undertaking that Author will inform Value Investors Club, the reader or anyone else prior to or after making such transactions.  Additionally, because the Author has these current positions the reader may assume that the Author is biased in favor of his investment view and may also be mistaken.  While the Author has tried to present facts it believes are accurate, the Author makes no representation as to the accuracy or completeness of any information contained in this note.  The reader agrees not to invest based on this note and to perform his or her own due diligence and research before taking a position in securities of this issuer.  Reader agrees to hold Author harmless and hereby waives any causes of action against Author related to the above note.

     

    Catalyst

     
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