Yesterday, SPAR GOLD (OTC:SPAG) broke up the loss at once. After a whole week of negative price changes, suddenly the stock price
jumped over 42% for a day. The question is, what has caused the unexpected gain?
Looks like the only explanation on the price jump are promotions. Yesterday, SPAG was promoted by a couple of promoters who stated that the stock is ready for big gains. These claims cost $100.000 to an unknown paying party that wanted to pump up the stock price. In this way, the compensations for all SPAG promotions in May reached $175.000 by yesterday.
Historical records show that the fist campaign was in the beginning of this month, when Spartan Gold failed to get the climb. However, now the result is different and it is interesting if the up move will continue.
Spartan Gold is a publicly traded USA based minerals company with gold exploration and development activity initially centered in Alabama, USA. Lately, the company has been mostly on losses, or zero price changes, meaning that traders haven’t been much interested into its activities as even the positive press releases and the material agreements failed to attract their attention. Actually, over the past two weeks there has been no news on SPAG, apart from its financial report.[BANNER]
According to the 10-Q, as of March 31 this year the company’s total assets were higher than its liabilities, however, the deficit accumulated during the development stage period has jumped over $16 million, excluding the substantial net loss.
Considering the cumulative losses since inception, the continuation of Spar Gold as a going concern is dependent upon its ability to generate revenues, to continue to raise investment capital and to implement its business plan. However, the losses continue instead and SPAG keeps relying on promotions.
