Liquid Tycoon and Stock Mister Breathe Some Life into Canyon Gold Corp (OTCBB:CGCC)
The publicly traded company that we now know as Canyon Gold Corp (OTCBB:CGCC) was incorporated in 1998 and since then, it has gone through several names, stock splits, and business plans. Despite the variety of offerings, however, investors were never really too keen on the idea of putting their money in this particular penny stock.
The latest name change coincided with the acquisition of a private company which occurred two and a half years ago and since then, CGCC has been one of the hundreds of mineral exploration enterprises on the OTC Markets. Once again, however, investors seemed unimpressed. Until yesterday, that is.
A total of three million shares changed hands in just six and a half hours of trading meaning that the dollar volume stands at around $733 thousand. The price sprung to life, hit an intraday high of $0.29 about half an hour after the opening bell, and closed the day at $0.23 which is around 53% above its previous close.
Unfortunately, the commotion was caused by nothing more than a paid pump. Liquid Tycoon (LT) and their affiliated newsletters were the first to alert us on CGCC a few minutes after the opening bell and, shortly after, Stock Mister (SM) also jumped in. According to the disclaimers, LT received $20 thousand while SM pocketed $25 thousand and it’s clear that their combined efforts did manage to lift the ticker from the prolonged hibernation. We also read in the fine print that the awareness campaign is going to last just one day which could suggest that CGCC‘s resilience will be put to the test during today’s trading. Will it manage to survive?
Time will tell, but we should note that there’s not much to support the inflated price, especially in the long run. CGCC‘s market cap, for example, stands at around $6.8 million which isn’t all that much, but when you have a look through the latest 10-Q, you’ll see that it might be a bit optimistic. Here’s a rundown of the figures as of October 31:
- cash: $0
- current assets: $5,500
- current liabilities: $1 million
- no revenue since inception
- quarterly net loss: $21 thousand
There’s also a number of outstanding notes which can be turned into common stock at a conversion rates ranging from $0.10 to $0.125 per share, which, in turn, could give the creditors an opportunity for some quick and easy money.
There are no press releases to support the run either. The latest announcement is dated November 7, 2013 and we should say that, in light of the figures above, it sounds somewhat amusing. In it, CGCC‘s CEO, Stephen M. Studdert, speaks about “careful capital-allocation and resource deployment” whereas the SEC filings reveal pretty definitively that the company has very little in terms of capital and virtually no other resources (according to the latest annual report, CGCC has no employees).
Speaking of Mr. Studdert, we should also mention that he isn’t your typical penny stock CEO. He has held some high-flying positions in his time and has even served as Advisor to US Presidents Gerald Ford, Ronald Reagan, and George H. W. Bush. Unfortunately, when you dig a bit further, you’ll find articles like this one which could suggest that he is also surrounded by quite a lot of controversy.
This, coupled with the fact that CGCC is put under the promotional pressure, should warrant a lot of extra caution. Doing your due diligence and carefully evaluating all the risks is absolutely essential before putting any money on the line.
