Gold Coast Mining Corp. (OTCMKTS:GDSM) Begins Do Slide Down
The stock of Gold Coast Mining Corp. (OTCMKTS:GDSM) began to slide down after it awakened earlier in the month and increased its price by 10 times. This pushed GDSM out of triple penny land, but not for long.
Just as predicted in our previous article, the company decided to swiftly change course and use the “magic” word in the OTC markets in order to increase its price. On February 13, right after our article was published, GDSM announced that they have began talks about structuring a new medical marijuana subsidiary in hopes that it will boost their stock price.
Things, however, didn’t quite turn out that way and the ticker lost its momentum with no percentile movement that day. The next day it even slipped 20% in price, closing at $0.0008. Even though the volumes were much smaller than the mind blowing 1.3 billion traded shares on February 12, we saw a good $315 thousand trade value.
It seems that most investors weren’t impressed by the predictable change of course. This is the most logical reason for the drop after the optimistic announcement. Another reason is the dire financial state of the company that we also wrote about in our previous article.
- cash: $0
- current assets: $0
- total current liabilities: $1.4 million
- revenues: $0
- net loss: $37 thousand
It’s starting to become a trend for companies with such financials, that were either in the oil and gas business, or in mining to switch to medical marijuana, seeing all the hype surrounding the stocks in the sector.
Still, they simply can’t compete with the ones that were in from the beginning, like Medical Marijuana, Inc. (OTCMKTS:MJNA), Growlife, Inc. (OTCBB:PHOT), Cannabis Science, Inc. (OTCMKTS:CBIS) and Hemp, Inc. (OTCMKTS:HEMP).
Also, when you think about the success of their previous venture and the fact that they had chosen it in order to increase their stock’s value again, you can get a pretty good picture of where things will most probably go this time.
This is the exact reason for which we would advise you to do your due diligence and weigh out the risks, especially with all these newcomers in the MMJ sector that entered it simply because of the hype.
