LEXG - Now Up Well Over 4,000% Since I Brought Here On March 22nd

I continue to bring LEXG to my blog, because I feel it remains a compelling story. This is a stock that had TWO trades for the entire 2011 year, before the 4 trades on March 22nd that were a prelude to this rally.

Today the stock exploded posting its largest percentage gain since that initial 400% front load move on March 22nd. It hit a high of $5.50 before closing at $5.02 or two cents above the penny stock threshold. Yes, I am, for the first time writing about a stock that is not per SEC guidelines, a penny stock. Although I think it will be again at some point soon, likely tomorrow.

LEXG's rally has been nothing short of breath taking. Apparently each day people are awaking with millions of dollars burning a hole in their pockets and instead of buying a mansion, real estate, a million Slurpees, a sports car, or something that has real tangible value (well maybe not the slurpee), they decide to pour it into a stock that represents a company, according to its most recent filings, with zero assets, zero revenues, and over $100k in liabilities.

LEXG's next SEC filing should show some assets as recent 8-k's reveal some acquisitions. These acquisitions require over $600k in cash just to start, with additional payments coming down the road, including share issuance. When these 8k's came in the first two months of 2011 the company had ZERO cash. I wonder how they planned on making those payments with ZERO cash in the bank at the time. Its quite obvious now isn't it?

Also note how there was no interest in the stock back then. If these were truly ground breaking acquisitions, don't you think the market would have caught on when those filings hit the wires?

My point is simple. Don't think this stock will go up forever. It will come back down, and could come crashing down. At some point the money will stop flowing into LEXG.

LEXG's market cap has gone from $5.7 million to $240 million in a little over a month. Has the company really changed that drastically over that time frame? How does a company with ZERO CASH on hand and ZERO REVENUES come up with the money to pay $600,000, just to start, for acquisitions? If you need the answer to that question you shouldn't be trading these stocks.

OTCmarkets has downgraded this stock to skull and cross bones. Normally a label reserved for the worst stocks out there, not a current SEC filer with over $50 million in daily volume.

Something is awry here, and I would tread carefully going forward. It's been quite a run thus far, when pigs get fat, they get slaughtered.