Universal Gold Mining Corp. (OTC:UGDM) hit the radars after the stock price went to test the safe support level and quickly came back up with a bang on the volume side.The stock trades rather scarcely usually and the increase in trading didn’t provide much more than another batch of volatility. The price was kept in the trading channel between $0.60 and $0.80 over the past month and the latest action was the first more serious attempt to break it.
OTCBB listed UGDM’s current financials do not justify the current price. The business is worth roughly $4 million on paper, though it holds a $65 million market cap because of the potential of their Columbian mining projects. This market valuation is however way over the top for the business that hasn’t proven the ability to extract the potential resources.[BANNER]
The stock has not moved on the announcement of the most recent changes in management, which should have caused a considerable reaction. The size of the public float is unclear, possibly prohibiting a more active trading as well.
The company’s sole officer David Rector resigned from all the positions roughly two weeks ago and no one has taken his place so far. Craig Niven has been appointed as assistant secretary to act as an officer until replacement is found for Mr. Rector.
