Augen Gold Corp. (CVE:GLD) (PINK: AUGNF) stock price really added some promotional bias to it after the company was featured in a penny stock newsletter.
GLD dropped below the 200-day moving average last week, but managed to recover over the last trading sessions. Technically, the stock price is swinging around this average so this breakout could extend over several days.Â
Stock price dropped last Friday when the company’s CEO David Mason announced his resignation. Mr. Carmelo Marrelli, CFO of the company has temporarily filled the position.
In other news, the company also announced that Trelawney, a potential acquirer, has increased their offer, proposing to pay 0.0862 shares of TRE for each GLD share. This offer will be valid until September 12, 2011.
The stock has been featured in a promotional newsletter published by AllPennyStocks.com. The company has paid $8.5 thousand for this recommendation and representation provided on their own website.
Considering the promotional effect, it can be assumed that the current share price rally is somewhat unnatural. But it still could lead to profitable breakout since more people are currently aware of Augen.
The fundamental side of the company doesn’t matter at this point since there was no new positive information disclosed by the company in recent days, only updates of ongoing matters.
