Ghana Gold Corp. (PINK:GGCO) Stomped After Pumps
Yesterday was not a good day on the market for Ghana Gold Corp. (PINK:GGCO). The company closed nearly 33% down and reached $0.075 at the closing bell. The promoters touting the stock have gone curiously silent.
GGCO is a company prospecting for gold in the Republic of Ghana. GGCO has also become the target of a number of stock promoters who pumped the stock over the last couple of weeks. In addition to all the touting, the company made sure to release a steady stream of optimistic but mostly nonessential press releases to back up the hype.
It seems even the promotional buzz couldn’t lift GGCO. The first promo mail came through on January 14 and started the stir around the company. Prior to that, GGCO was barely trading and enjoyed practically zero investor interest. Despite the dozens of emails sent out, GGCO is currently more than 60% down from its pumped high of $0.21 per share.
The company’s filings are not too exciting as well. The latest official publicly available report is dated September 30 and includes the following:
- $1,148 in cash
- $318 thousand in current liabilities
- $987 thousand in revenue
- $327 thousand in net loss
Whatever revenue is generated is completely wiped out by expenses and costs and the bottom line is a loss in the hundreds of thousands. The company may be trying to curb costs by operating out of a very small suburban house in Florida, according to their address listed on OTCMarkets.com. GGCO‘s headquarters is on the supplied photo.
David Cohen, one of the promoters who touted GGCO against a disclosed compensation of $35 thousand, previously offered subscribers of his Research Driven Investor newsletter other opportunities to lose some money on penny stocks. RDI’s promotion of Gemini Explorations, Inc. (PINK:GMXS) in late November saw the stock crash horribly within a couple of sessions.
Traders are advised to be careful around promoted stocks as their movement tends to be largely speculative and volatile due to the artificial interest created by pump campaigns. Do your own due diligence and stay safe!
