Augen Gold Corp. (CVE:GLD) (PINK:AUGNF) had an increase in trading activity after the company had some promotional help from a side.
GLD added only 5.7% yesterday but had a noticeable increase in trading volume. 1.4 million shares changed hands, which was nearly 4 times the average turnover of 406 thousand
The change in trading activity didn’t come from nowhere – the stock was promoted by AllPennyStocks.com. The detailed newsletter was done for a payment of $8.5 thousand but the paying party was not disclosed.
The newsletter focuses on promoting gold as the only safe alternative under the current market conditions and carries on to associate those general thoughts to Augen Gold as a very perspective player in the gold mining industry.
It also promotes an idea of buyout, giving some vaguely related examples and points out the favorable outcomes for investors. However, in Augen’s case it’s the hostile takeover intention from Trelawney Mining and Exploration, Inc. (CVE:TRR) that is on the plate and it’s not clear whether investors wouldn’t be screwed if it went through.
Even if the promotion will would work to push the share price higher it still has resistances to take out between 37.5 and 40 cents and it is now clear that the increase in trading activity alone will not suffice if there is no real news.
