Last Friday Lone Star Gold Inc (OTC:LSTG) lost 8% of its value, but through the efforts of some paid promoters it bounced back to $1.10 yesterday.
Closing at $1.10 was a 7.84% gain for LSTG. The generated volume of 468 thousand shares was more than twice the average for the stock.
The company issued a press release yesterday. It didn’t say much about LSTG. It was a “gold industry overview & outlook”, which makes it an unlikely reason for the market performance of LSTG. The latest information provided by the company was about the $15 million financing agreement from Aug. 29.
A more obvious reason would be the appearance of LSTG in a number of paid promotional newsletters. The promoters claim that they were not compensated by the company itself, but rather by a third party.
The newly sent e-mails are mostly copies of the previous ones that started the Goldcorp rumor, except this time there are a couple of lines that make it more of a possibility than a statement.[BANNER]
Still, there are no new developments around LSTG, and the company has neither confirmed, nor denied any connection with Goldcorp. The market also treats it like a rumor, and according to FINRA’s daily short sales file about half of yesterday’s volume came through short sales.
