Not much was left yesterday from DGRI value added within the previous trading session. The share price tanked back down by 30.38% and closed at $0.0275 on almost the same trading volume of 89.27 million shares. Again, almost the entire public float of the company was traded, and it seems that the effects from the heavy shorting last week have become evident.
The chat room speculations that some traders tried to spread out on Friday got also rejected by the company this Monday. The management said that they were not aware of any undisclosed material information that could cause the “recent price volatility”, confirming the thesis that the higher price resulted from shorters’ speculative trading, which in turn has been made possible by a stock promotion for the shares.
While Dutch Gold CEO made all efforts to explain the sudden interest in DGRI shares with the rising price of gold and with the heating up merger and acquisition activity in the junior gold minor sector, the promoters of the stock got disclosed. Just to remind, the company has not yet produced any gold, has not had any mining operations and was running out of cash at the end of June this year.
Though, that did not prevent its stock from getting successfully advertised to traders during the last three trading sessions by three different promoters. No compensations have been disclosed so far.
