Nevada Gold Corp. (OTCBB:NVGC) Bought Up on PR Activity

If you look at the graph for the Nevada Gold Corp. (OTCBB:NVGC), it certainly looks like striking gold, as the ticker broke through to 30 cents on Friday, adding more than 14% on buying volumes above $635,000. There is still no open email promotion for this ticker.

But the company itself is in rather active self-promotion, with two new press releases at the end of last week. Thus, after two rather flat months, NVGC takes off both in price and in volumes.

NVGC promises that it would be taking part in the “Nevada Gold Rush” as more miners try to develop mines in that area. For this, the firm plans to expand its board of directors, as well as build a board of expert advisers on mining. But all of those are just tentative plans, with no names- a PR message with little substance, except for the possibility of creating interest among new investors.

NVGC also touts its Facebook page as a source of information on the business. In addition, NVGC posted the Diamond Jim Mine historical data, probably suggesting strong production of gold and silver in the future. But the article on the results was posted on the social network as far back as September, and now is used on a more visited website. As for the social network page, it was liked only by 24 people, and is practically a non-issue. We’ll wait and see if exposure turns to “likes”, and the “likes” to a higher price and volumes in the new week.

The financial data also show that NVGC is little more than different forms of hype and promises. Despite claiming to have mined gold and silver in the past, the company has:

• $14 cash and total assets!!!

• $183 thousand total liabilities

• ZERO revenues

• $4090 net loss

It would take a rather wise advisory board to know how to turn the company around, and even if NVGC strikes gold, the stock price will probably do what all high movers do, sooner or later: correct to lower levels.

Oil, gas, metals and minerals are an often-seem gambit among penny stocks, since they add a sense of solidity and real achievement to what is no more than future promises.

DNA Precious Metals, Inc. (OTCMKTS:DNAP) is currently in active promotion, though it starts to look rather chaotic. In the past days, the ticker stagnated around 50 cents.

And OriginOil, Inc. (OTCMKTS:OOIL) is a signifier energy-sector pump, which made a huge leap on a paid promotion, only to slide down below 30 cents on a recent dead cat bounce.

So despite the high gold prices, don’t look for immediate results, and avoid investing unaffordable sums in things that glitter.