The stock of Pacific Gold Corp. (PINK:PCFG) soared big time after a microcap researcher initiated coverage on PCFG yesterday.
Yesterday, PCFG shot up $0.0055, or 39.29%, to $0.0195 per share, its biggest percentage gain for the last 52 weeks and highest close since early-December 2011. All this happened on a research report issued by entities claiming to be ‘the worldwide Gold Standard for micro cap/small cap research.’ Is that really the case, though? You had better check it yourselves.
Today, PCFG is in for another two-day promotion. Worth $9,000, the advertising effort is expected to raise awareness about PCFG stock within the next couple of days. The promotional mail is almost entirely based on gold’s chart performance for the last three years or so, as well as its growth prospects in the foreseeable future.
So far, so good. However, just because gold is getting more and more expensive does not necessarily mean that any gold mining company should strike it rich by default. Indeed, PCFG, through a network of four operating subsidiaries, holds interest in a number of properties. Yet, the company is still far from making a fortune out of it. On the contrary, PCFG is short of cash, over-leveraged and loss-driven. Unless it persuades traders that its properties might potentially contain high deposits of precious metals, PCFG will hardly maximise its market value any time soon.
