Pumpers Harass Discovery Gold Corp (PINK:DCGD) Once Again
About an hour ago the next in a long line of emails about Discovery Gold Corp (PINK:DCGD) hit our inbox and we were hoping that things will be different this time. As Fridtjof Nansen once said, however, “life is full of disappointments”.
That’s right, just a month after the last pump on DCGD, the paid newsletters are all over them once again and this time, the third parties who apparently think that DCGD need another promotion are a bit more modest now – the pumpers this time are relatively small and not that active (OTCBB Journal and First Penny Picks) and because of this, the compensation was not that big, either ($3,000). And we have to give it to them – they tried really hard to find something to write in their emails.
Sure, DCGD did issue a couple of press releases since we last covered them, but they are not all that informative. In fact, we’re starting to think that DCGD themselves have run out of things to say. The two announcements that OTCBB Journal and First Penny Picks have quoted in their emails are “comments” on the price of gold and the strategic geological location of DCGD‘s mines but these things will bring absolutely no valuable information to the shareholders.
Why? Because there is nothing to suggest that DCGD will start digging for gold any time soon. As we mentioned in our previous article, they have no more than $18 thousand in cash, $23 thousand in current assets and net losses since inception amounting to as much as $8 million. With that in mind we reckon that both the shareholders and that potential investors are more interested in the question of when will they finally start digging for gold. Unfortunately, DCGD are rather reluctant to discuss that topic.
They have also quietly filed a couple of Form 4’s regarding the acquisition of some common shares by the officers which were given to them as a reward for their services. And speaking of officers, DCGD‘s CFO, Mr. David Cutler is quite a busy man. How busy? Imagine holding executive positions at not one, not two, not even three, but six publicly traded companies. That busy.
That’s right, Mr. Cutler must be extremely good at multitasking since after after quite a lot of research we managed to find that he is at the helm of Golden Dragon Holding Co (PINK:GDHC), Southwestern Water E (PINK:SWWE), Capital Resource Alliance Inc (PINK:CRRA), Quantech Electr (PINK:QTHE) and Torrent Energy Corporation (PINK:TREN) and, as a past time activity, he is also in charge of managing the financial flow at DCGD. No wonder that their 10-Q is so uninspiring.
On a positive note, he doesn’t need to run around like mad from one office to another every fifteen minutes, since all six companies are run from the same exact suite (#380C) in the office building located on 2460 West 26th Avenue in Denver, Colorado.
Of course, there is no law stopping Mr. Cutler from having six companies cramped inside the same room, but we’ll leave it up to you to decide what that does to DCGD‘s credibility.
And while you are contemplating this question, we’ll turn our attention to today’s pumpers. Sure OTCBB Journal and First Penny Picks are not the most famous newsletters and neither do they have the biggest compensations, but in terms of failed picks, they are just as “good” as the big boys. They were both part of the previous pump for DCGD back at the end of March and they also created some hype around WebXU Inc (OTC:WBXUE) on April 11. Since then WBXUE have lost 63% of their value and we’re struggling to see them getting out of the mess any time soon. Just another thing to keep in mind while making your decision on DCGD.
