Bullfrog Gold Corp (OTCMKTS:BFGC) With Another Unexpected Run

It’s not uncommon for a virtually dormant ticker to explode onto the scene. We often see companies that are all but forgotten suddenly show immense trading activity, but in almost all of the cases, there’s either some exciting news to entice people’s interest or a paid promotion. Bullfrog Gold Corp (OTCMKTS:BFGC) is an exception.

After sitting virtually idle for the better part of 8 months with daily trading volumes ranging from just a couple of thousand shares to no more than 900 thousand, BFGC suddenly broke free yesterday when nearly 3.8 million shares changed hands which resulted in 26% increase in the value. That’s all well and good, however, we’re a bit baffled by the reasons for this. Or rather, the lack of such.

Often, it’s an exciting piece of news that gets investors all hyped up about a penny stock and when it comes to mining ventures, we’ve seen tickers move on the basis of optimistic projections or research results done by supposedly unrelated geologists. While in most cases, the optimism turns out to be unfounded, we see stock movements similar to the one displayed by BFGC yesterday. Surprisingly enough, there are no new press releases. The latest one to come out of their headquarters is dated May 7 and when you check it out you will see that it’s about a TV segment featuring the company CEO and when you open the link to the video, you’ll see that the coverage was aired way back in March. It’s pretty clear that this wasn’t the reason for yesterday’s run. It had to be something else.

Our next stop was the SEC filings since tickers in Pennyland often tend to move around when investors get excited about some up-to-date figures. In BFGC‘s case however, the latest 10-Q is the one covering the first three months of 2013 and it was published on May 10. Having in mind that more than two months have passed since then, we knew that it can’t be the filings that caused all the stir. On the bright side, financially speaking, BFGC seem to be better off than most exploration stage small cap ventures. Here are the figures found in the report:

• cash: $492 thousand
• current assets: $978 thousand
• current liabilities: $108 thousand
• revenue: $0
• quarterly net loss: $1.1 million

It’s not all good news, though. We checked the annual 2012 report as well and we saw that BFGC‘s fiscal year ended with more cash, more current assets and less current liabilities. In addition to this, the accumulated deficit amounts to a rather scary $4.7 million and they’ll need to raise an additional $1.3 million in order to start exploration at two of their projects – Bullfrog and Klondike.

On the bright side, they say that they have dug some holes in their third property called the Newsboy Project in Arizona but even that wasn’t enough to draw the attention of the paid pumpers. We have managed to intercept no emails about them whatsoever and even though we hunted high and low for other means of promotion like a hard-mailer campaign, we could find no such thing. Which makes yesterday’s trading even more confusing.

All in all, the mystery of BFGC‘s run remains unsolved but in the meantime, there are some things that you should keep in mind in case you’re considering jumping in on the unexplainable hype.

This is not the first time BFGC makes such a jump. Our previous article on them is dated November 1, 2012 and if you take a look at it you will see that there was a similarly high peak on a similarly high volume and we were just as baffled as to what caused it. Now, eight months later, all the gains registered back then have been erased and we reckon that if BFGC want to be taken more seriously, they’ll need to do something about the rather unpredictable stock movement.

They might also think about changing the address of their principal office since when you look up the current location on Google Maps, you see a rather good-looking residential house in the city of Grand Junction, Colorado.

In conclusion, we would like to note that unless BFGC show us some cold hard facts that could convince us of their success, they will start losing value really soon. The crash probably won’t be as violent as the one displayed by Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII), but even if it isn’t, considering all the risks beforehand could save you a lot of headaches in the long run.