New World Gold Corp. (OTCMKTS:NWGC)’s Mystery Run Escalates Further
We have kept a eye on the explosive yet confusing chart run of New World Gold Corp. (OTCMKTS:NWGC) for a while now. The price climb continued into yesterday’s session too, with NWGC closing 77% up, despite the lack of any events or filings that could send it that high.
Within four short sessions NWGC soared from the bottom end of double-zero land to nearly a cent per share. This extraordinary run is a little confusing, considering there was no trigger for it. The company filed its latest quarterly report back on May 15, but traded zero shares on that day and closed down over the next two sessions. Here is the brief summary of numbers reported:
- $79 thousand in cash
- $59 thousand in current liabilities
- $2.4 million in quarterly revenues
- $750 thousand in quarterly income
Even though those results were reported several days before the spike, traders did not react at all and NWGC remained thinly traded at best. Volume and price action came on May 22. Strange, then, that on the very same day at least two outfits started promoting NWGC on their Facebook pages.
BIG Investments Group, LLC published an alert post focusing on NWGC and the opportunities it allegedly presented on May 22. On the same day Silk Dynasty Stocks, LLC – another penny stock ‘research team’ posted a Facebook alert on NWGC. The two entities promoting NWGS’s stock through their Facebook pages have a total of over 34 thousand people who liked their pages.
With this sort of promotional activity, because calling a stock one’s “new alert” is just that, the surge in share price that New World Gold charted could be more easily explainable. The issue here is that even though the company reported admirable revenues and profit for a sub-penny, there is still a huge discrepancy between its quarterly revenues and its market cap. Before the massive spike in price, NWGC‘s market valuation was just a fraction of its quarterly revenues – a strange deviation by most standards.
Silk Dynasty and BIG Investment Group do not disclose any specifics on whether or not they were compensated for promoting NWGC in particular in their lengthy and obfuscated disclaimer texts. Still, traders should keep in mind that the Facebook posts likely created artificial interest in a stock that barely traded in the last few months. Those who keep an eye on technicals may also discover that yesterday NWGC‘s RSI sailed over the 90 level. As usual, readers are advised to do their own due diligence on any company and be thorough with it, as promoters are continuously finding new ways to tout stocks, with Twitter and even Facebook starting to overtake emails as the preferred method.
NWGC is currently 5% down in early trading.
