Pershing Gold Corp (OTCMKTS:PGLC) Remains Uncertain
Pershing Gold Corp (OTCMKTS:PGLC) is far from the most active OTC-listed enterprises when it comes to press releases. Over the last two months, they have made only two announcements, which, for a penny stock company isn’t really all that much. That said, the updates sound really rather good.
On November 25, for example, they said that the latest drilling results at their Relief Canyon property have come out and announced that the numbers are significantly higher than the initial estimates. On January 8, they informed us that a person by the name of Dan Moore has joined the management team. Apparently, Mr. Moore is an experienced professional and his expertise will be invaluable in turning PGLC into a gold producing company.
It’s not all wishful thinking either. If you’ve been following our articles closely, you know that PGLC has had a relatively stable financial foundation, especially when compared to other mining penny stocks. The latest 10-Q covers the third quarter of 2013 and it shows that, if anything, the fundamentals have been strengthened further. Here’s a summary of the most important figures:
- cash: $9 million
- current assets: $9.4 million
- current liabilities: $470 thousand
- no revenue since inception
- quarterly net loss: $8 million
It’s clear that the losses are huge and we’re sure that most of the shareholders are eager to see the company come out of the exploration stage. That said, the significant cash reserves and the relatively small amount of debt suggest that they might actually have a shot at doing it.
And yet, the stock remains as hesitant as ever. PGLC has undergone a few promotional campaigns in the past, but although the ticker has been running under its own steam for the last seven months, its performance leaves a lot to be desired.
Even the optimistic press releases fail to induce any sort of buying among investors. On November 25, for example, when they announced the positive drilling results, PGLC remained virtually stationary and registered just $133 thousand in dollar volume. January 8’s session was pretty much the same and even supportive Seeking Alpha articles fail to give the stock a push.
A few volume spikes can be observed every now and then, when the company directors decide to purchase some shares on the open market, but, once again, the effects are nothing to write home about.
Today, though, PGLC might take a few hits. Yesterday, a law firm called Levi & Korsinsky, LLP (L&K) announced that they have launched an investigation against the Board of Directors. L&K issued a similar press release back in December and although traders’ reaction back then wasn’t too significant, the fact that the Board of Directors is investigated for the second time means that someone is really unhappy with them.
All in all, if you are contemplating a potential investment in PGLC, you should bear in mind that the company is still in the development stage. They have yet to give us a deadline for the start of production and the threat of legal problems adds another layer of risk. Considering all potential dangers is, as always, absolutely essential.
And while PGLC seems reluctant to show any sort of double-digit movement, other stocks are absolutely exploding. Friday’s session was a blast for Worldwide Internet Inc. (OTCMKTS:WNTR) and Mentor Capital, Inc. (OTCMKTS:MNTR). WNTR was pushed up by as much as 91% after the management team announced the completion of a $5 million acquisition. MNTR made an even more impressive 759% surge which was fueled by a press release informing us that they want to invest in the white hot cannabis industry.
