Discovery Gold Corp (PINK:DCGD) Getting All Fired Up by Sizzling Stock Picks
Ghana – a small African country full of penny stock companies crawling all over its gold resources. One of them is Discovery Gold Corp (PINK:DCGD) and they have high hopes of becoming massively rich through exploring some mines there. That’s what they say, anyway.
Sizzling Stock Picks are also on hand to help spread the word around, but experience has taught us that we shouldn’t be too keen on trusting mere promotional newsletters and optimistic company announcements. When it comes to DCGD, the announcements have been massively optimistic, especially during the last couple of weeks.
First, they published their quarterly report for the period that ended on January 31. Then, they said that they will be conducting a research on some of the mines that they intend to explore and now, just a week later, the results are in. The latest press-release hit the websites just an hour or so ago and it is full of figures. Unfortunately, although we read through it several times, we can’t understand a thing from the overly complicated technical analysis quoted in the press-release, but since DCGD‘s CEO is happy, we could only assume that all the figures predict a bright future for the company.
Except for one very important detail – financing. As we mentioned, not more than a couple of weeks ago, DCGD filed their latest 10-Q and the figures in it cover the three months that ended in January. The logical questions is “Can DCGD find the money that they need in order to dig the precious metals out of the earth?”. Below you will find the most important figures from the report and we’ll leave it up to you to have your own guess:
- cash: $18 thousand
- current assets: $23 thousand
- current liabilities: $83 thousand
- revenue since inception: $0
- net loss since inception: $8 million
The terrible state of their financials has probably lead to the steady decline in the share price during the last couple of months and we’re quite sure that the promotional effort that was carried out for them in October 2012 helped push the ticker further down. So, all in all, we’re not quite sure what Mr. Flechner is so excited about.
Considering the fact that they are once again the target of a paid promoter, he should actually be quite concerned. Sizzling Stock Picks, the people that are now trying to create some hype around DCGD, were paid to pump Ghana Gold Corp (PINK:GGCO) at the beginning of February. As you’d have probably guessed, GGCO is a company that is dealing in exactly the same field as DCGD and we are ready to bet that you want to know what happened to them after the pump. Instead of unnecessarily extending the article with metaphors like “sank like a stone” or “fell like a rock”, we would just encourage you to take a look at the chart on the right.
And you can’t say that gold exploration companies with a sentiment for small African countries are the only tickers that fall victim to the pumpers. IMING CORP (PINK:IMNG), for example, are also part of Sizzling Stock Picks’ portfolio and the pump for them took place on February 4. Even though they’re not searching for gold in Ghana, they failed even more spectacularly once the emails stopped.
These two examples show how careful you should be when playing with promoted penny stocks. The risks are even higher when the pumped company simply lacks the financials to back up the optimism of the emails and press-releases which, accidentally, is exactly the case with DCGD.
