Nevada Gold Corp (OTCBB:NVGC) Pump Can Still Hurt

We have been covering Nevada Gold Corp (OTCBB:NVGC) for a while now, and there is a good reason to keep doing so. There are plenty of people willing to skip the due diligence when some pumper says a stock will explode.

In this case the pumper is Stock Castle, and the latest claim made by the rather notorious pumper outfit is that there will be a “short squeeze.” Pretty much every pump job which lasts more than one or two days tries this approach when the touted stock crashes.

That’s exactly what happened last Friday when NVGC took a 36.79% dive, even if the Stock Castle pumpers have the nerve to call it a “slight pullback.” They go on to say that it was caused by short sellers trying to manipulate NVGC.

Readers can decide whether that claim holds any merit, but they should take into account that it was exactly last Friday when the company tried to wash its hands, claiming they were aware of the pump, but had nothing to do with it.

NVGC management went as far as saying that the targets and projections in the “promotional pieces” were not based upon realistic and comprehensive analysis of the company and its properties.

That’s a step which could protect potential investors from losing a lot of money, but the fact remains that the very way the company was set up and brought public fits perfectly the mold of most big pump jobs, including the previous pumps of Stock Castle like Wild Craze, Inc. (OTCBB:WILD) and Premier Brands, Inc. (OTCMKTS:BRND).

Whether the pumper efforts manage to give NVGC a couple more sessions in the green, or not, ultimately the price of the stock will adjust to reflect the actual value of NVGC.