Nevada Gold Corp (OTCBB:NVGC) Receive a $800 000 Pump

On Wednesday the gold and silver mining company Nevada Gold Corp (OTCBB:NVGC) crashed hard and lost nearly a third of its value. Although it went as low as $0.19 the stock still managed to claw its way up to $0.24 at closing time. Thanks to the steady stream of PR articles before the crash NVGC was making a steep climb up the chart on rather significant for the company daily volumes.

In our previous articles about them we warned that the mining industry is the preferred one for many paid pumpers and that a possible promotion is highly likely. Especially if you take into account all the typical pump characteristics displayed by NVGC. Back in 2008 the company sold 3,3 million of its shares to 34 investors for a total of $66 thousand, or just $0.02 per share. Then in 2012 came the 8.5-for-1 forward split turning those shares into 28 million for just $0.002 each.

Well, as of Wednesday afternoon the pump is now a fact and those people stand to gain millions at the current prices. Email alerts were sent from Penny Stock Profitz, Stock Castle and WallStreet Advisors. All of them disclose that they expect to receive $800 thousand for their services from Wimtac Systems LTD. PennyStockProfitz is a new entity with NVGC being his first pump but the other two have long operational histories. Back in August they were hired to tout Wild Craze Inc. (OTCBB:WILD) for the same compensation of $800 thousand. When the emails stopped coming WILD started to plummet and is now 85% lower, trading for $0.08 per share.

Although the artificially created hype managed to push NVGC back to $0.33 on an absolute record for the company volume of 3.3 million shares that doesn’t change the dismal financial situation of the company. For the quarter ending August 31 they showed some rather dreary figures:

• $14 cash and total assets!!!
• $183 thousand total liabilities
• ZERO revenues
• $4090 net loss

If the next report shows no improvement the ticker might once again head for the bottom. The risks around NVGC should not be underestimated and doing your own research might help you avoid any unnecessary losses. A much more stable company – Profire Energy, Inc. (OTCBB:PFIE) also managed to recover after two days of sliding and surged 23% to return to $3.70 per share after announcing record revenues and net income for the quarter.