Double Crown Resources, Inc. (OTC:DDCC) Surprises with Record Volume, Up 60%
Not a day passes without an inactive stock making a buying record, and now proud investors own more than 11 million shares of Double Crown Resources, Inc. (OTC:DDCC), yet another small cap company promising upcoming mining of a scarce metal. The stock gained more than 60% in a single day, reaching 2 cents per share. 
Usually, penny stock mining companies are a dubious deal, lacking the funds and sustainability to bring a product to market, although some claim to own much-hyped mineral properties. Here is what DDCC shows in its filings: 
- $2,902 cash, no other liquid assets
- $1.2 million current liabilities
- Zero revenues
- $65,023 net loss for the latest reported quarter
- $3.4 million net loss since inception
The stock has not seen active promotion since December last year, and even then it was far from Thursday’s volumes. At the end of February, a relatively large purchase of insider stock was recorded, 3 million shares, bringing the insider holdings to 36 million shares, a non-negligible chunk of the 177 million shares outstanding.
The lack of a mailing campaign for DDCC is compensated with a PR message about a reverse buyout, this time of Synergy Natural Resources, LLC, an industrial and manufacturing company. This may be a way to expose Synergy to the OTC market, and be the real way in which DDCC is expanding into servicing the oil business. So far the mineral claims for gold and silver, and possibly molybdenum, have remained in the preliminary stage.
Whether the fracking industry will bring profits to DDCC is still in question, but the 2-cent stock may move erratically over the next few days as it invites more volume. Yesterday, another newcomer, Foy-Johnston, Inc. (PINK:FOYJ) suddenly gathered investors’ interest, but despite the spikes in volume it hardly budged from the $0.001 range and seems to be heading for the triple-zeroes. So a lot of investors may be left with an inert and heavily depressed stock.
In case of unknown and inactive tickers, it is best to know for yourself the acceptable level of loss and not pin too many hopes on any single new ticker with a penny price.
