There is no doubt that there have been days of Lone Star Gold Inc (OTC:LSTG) shares trading for more than $1 million dollar volume. The question is why.
Yesterday, LSTG closed flat at $1.12 with more than 1.5 million shares traded. One very obvious answer to the question above is that LSTG is being rigorously pumped.
The latest pump mails have let go of the previous claim of a possible buyout by Goldcorp which was denied by David Deisley, executive vice president of corporate affairs and general counsel for Goldcorp.[BANNER]
The mails sent by the promoters say that Daniel Ferris, President of LSTG “…has a successful track record.” They say he took a start up company from $16,000 to an annual turnover of $3.2 million in its third year.
The company in question used to be Magnum Communications Ltd. “Used to be”, as in it is no more. “Magnum Communications was doing so badly that it had to be put into voluntary liquidation.“
Of course, past failures don’t mean one can’t have a successful endeavor after that, but advertising a bankrupt company as a “successful track record” may be a tad bit inappropriate.
According to numerous posts on LSTG’s iHub message board, people are receiving regular mail pumps. If nothing else, it shows someone is willing to pay a lot of money for people to buy LSTG shares.
As the chart shows, there are those who think it may be a good idea. It’s up to the individual trader to decide what LSTG is, and how much it is worth.
