After a steady week of gains, National Graphite Corp. ( OTC:NGRC ) corrected by more than 22%, showing its risky side. The selling happened on a 4-million stocks volume, with a large number of deals landing early in the day, showing some taking of profits. But the alerts and emails for the stock still continue, and this ticker may try to recover lost positions. However, despite the emails, GRPH slipped well below the $1 projection. Beyond the promotions, NGRC is a company still in the exploration stage, showing plans to mine and sell graphite in the USA. This remains a highly unrealistic aim, since the American graphite market is already well-supplied from synthetic sources and imports and the small additions of a natural mine may remain unnoticed. This does not stop NGRC from sending the research results for its Chedic graphite property, showing several samples with a 25 to 40% grade content. However, it is unclear if the whole property offers good enough yields, and if the natural graphite is even marketable as a substitute to synthetic graphite. The company shows financial strength just enough to keep up the prospects of mining, but no actual mining and marketing at this stage. Its statements show: $192,624 cash $521,368 estimated mineral interests 499 million stocks authorized at $0.001 par value $128,808 net loss While some expectations admit the NGRC stock may stay above the dollar mark and climb for a while, its active trading may quickly wipe out the value of investments. The stock may follow the trend of another graphite mining small cap company, Graphite Corp. ( PINK:GRPH ), a recently promoted stock with similarly poor fundamental results and high promises. The GRPH ticker is touted right now by Penny Lane , a promoter that promises the general bull run of the stock market will lift up all penny stocks. The ticker, currently in a deepening downward trend, is touted as possibly reaching $6 per share on a general rising tide of stock prices. However, in the case of small cap mining companies, it is best to see their real strengths and even then doubt a little whether the prospecting can turn into a real business.