Gold American Mining (SILA) was the subject of a mailer from The Myers' Letter. The mailer claimed that SILA was a shoe-in for takeover by Goldcorp (GG). Nothing of the kind ever took place. Sparking a takeover rumor is a classic stock pumper's gambit. No takeover is ever likely due to this company's lack of any revenue at all. I'm not even sure if SILA is still operating, as the website is currently offline.
Gold American Mining has negligible assets. Reading the 10-K from November 2011 is a hoot. The company began as a plan to market golf "services" at private clubs to people unqualified for membership. The ownership of the property in Zacatecas State, Mexico, they had optioned to explore for gold is under a legal cloud. The company has exactly one employee. The "risk factors" section includes doubts about the company's ability to continue as a going concern.
Why would anyone buy this stock? All of the information needed to make a common sense decision is right there in the financial statements available at the click of a button. The mailer is useful for filling my neighborhood's paper recycling bin.
Full disclosure: No position in SILA or GG at this time.