Club Penny Stocks Pump Tries to Liven Up Colorado Gold Mines, Inc. (OTC:CGLD) Stock
A new pump is set in motion, one touting Colorado Gold Mines, Inc. (OTC:CGLD) – a penny stock mining and exploration startup. Club Penny Stocks, one of the pumpers, disclosed a compensation of $22.5 thousand for advertising CGLD stock.
The promotion is freshly plucked from the weekend picks of pumpers. Club Penny Stocks somehow managed to twist the recent drop of Apple. Inc. into a penny-stock-appeal story in their promo email. Their sentiment may have been valid if it concerned a smaller business that was growing and generating revenue. However, this is not the case with CGLD.
The company was previously known as Cascade Springs Ltd. until the summer of 2012. The promo email proudly states that the company is headquartered in Las Vegas – a possible allusion to opulence and prosperity. This may or may not be the case, considering the company’s registered address looks more like a private luxury house than corporate headquarters.
The company’s latest available financial report is dated September 2012 and contains some figures that may put a frown on investors’ faces:
- total assets, cash or otherwise, of twenty-five dollars
- $145 thousand in liabilities
- $212 thousand quarterly net loss
- zero revenue
In short, according to this latest financial report, the company is next to penniless and its debt is piling up fast. The promoters fail to mention any of this but instead tout the incredible potential of CGLD, imagining they found precious minerals in their Keeno Strike property.
The company’s most recent filing is from last week and it details a five-fold increase of their authorized shares – from 100 million to 500 million. This is usually unpleasant news, especially coming from a company that is being currently promoted. The company changed management twice in the last quarter of 2012.
The promoters at Club Penny Stocks have a track record of past promotions that is less than stellar. Back in November 2012 CPS touted Sunbelt International Corp. (PINK:SUNB). The price of SUNB is currently nearly 80% down from the time Club Penny Stocks promoted the company.
Investors should always watch their step with promoted companies, especially with paid promotions as the artificial interest those create is often over the moment the promo is done and stock price takes a surprising turn for the worse once the pumping is over.
