SRGZ declined by 3.90% and closed yesterdays’ session at $0.74. The considerable volume of over 748,000 traded shares is almost three time the average, and is maybe a signal that the sudden interest on the trading alerts sent last Thursday is starting to fade away. It seems that without a follow-up promotion that could bring buyers to the market again, the currently highly inflated share price may easily start to climb down.
The stock promotion last Thursday was followed by a sharp decline on the following day, but the news about Star Gold from yesterday could have helped some traders to take some more delayed profits. The fact that the company had to appoint a new CEO did not seem to bother the largest part of the market that much. Kelly Stopher has been welcomed to the management team and according to the SEC filing he has solid experience in financial management and modeling for small-cap companies.
As the news was not related to some milestone gold discovery on one of Star Gold projects and as the company does not seem to have any drilling operations currently, and no financial reserves to conduct such either, it is questionable how exactly the new CFO can contribute to SRGZ becoming a profitable company, except for providing budget for a another series of stock trading alerts that could at least secure some profits to the traders.
