More PR From Nevada Gold Corp. (OTCBB:NVGC)
Despite the fact that Nevada Gold Corp. (OTCBB:NVGC)’s financial situation is grim, the company is still issuing press releases and it seems that the effort is paying off. NVGC is still on a steady climb after it breached the 30 cent barrier last week, but where will it go from here.
The climb of NVGC is getting slower in the past days, but the volumes of traded stock are still quite big. The ticker has added a total of 112% to its value since it started to climb in the beginning of the month and the self-promotion is still on.
It seems like the company is doing real progress, however, it might turn out to be just sand in the investors’ eyes. Yesterday’s press release was filled with tables of the samples from the Diamond Jim Mine that were enough to keep the momentum, despite the dire financial state of the company.
NVGC managed to go 8.33% up yesterday, while still being traded on heavy volume. The 1.29 million shares that switched hands in the first session for the week were enough to generate $405 thousand in dollar volume.
Let’s not forget that we discussed NVGC‘s financial state in our previous article and if you have been following us you would know that the company isn’t in good shape.
With 14 dollars on hand, the only way that they are going to get something out of the ground is if the company’s executives go there and dig with their bare hands, which is rather unlikely.
A line of credit on the other hand, backed up with a portion of shares, could dilute the stock, which we think wouldn’t be to the liking of any of the people who invested in NVGC.
These are the exact reasons for which we would advise you to proceed with caution and do a lot of due diligence if you are thinking of a speculative play with NVGC.
First Titan Corp. (OTCBB:FTTN) are experiencing a dark period and their stock is continuing its downward slide with a 19% loss from yesterday. 22nd Century Group, Inc. (OTCBB:XXII) are also losing value and seem to be headed in NVGC‘s opposite direction.
