Gold Standard Mining Corp (OTC:GSTP) is heading straight down in sub-pennyland. Apart from a couple of sporadic jumps, GSTP stock has found itself into a downward spiral for the last six months or so.
Even the latest corporate update which popped up just two days ago, failed to impress investors. On the contrary, GSTP stock lost 4% in value during Tuesday’s session. What is more, the downfall continued yesterday when GSTP lost further 22%, closing the session at $0.075 per share. The volume reached 164 thousand shares, which is neither better than the average figure, nor among the company’s best recent scores.
Since GSTP’s latest intention to search for mining opportunities in Russia did not excite traders, third parties have now resorted to the services of paid promoters to get this stock going. Currently estimated at $40 thousand, the advertising campaign is expected to raise awareness about GSTP stock and give it a boost in the forthcoming session. While such a scenario is indeed probable, it will by no means last long. Because, most investors are well aware of a couple of older press releases of a similar nature that eventually came to a dead end.
As seen on one of the premier financial sites, GSTP “does not have significant operations”, which is the reason why most traders perceive GSTP as a shell company with no real assets. Indeed, the company’s 10-Q report for the first quarter of 2011 only shows $1651 in cash and a working capital deficit in excess of $250 thousand. As far as revenues are concerned, they are completely out of the question at the moment, hence the net loss of $35 thousand.
As long as GSTP continues to act as a shell company, it will only attract risk lovers willing to take advantage of pumping schemes. Risk-averse investors, on the other hand, will most probably opt for other alternatives.
