Gold Coast Mining, Corp. (OTCMKTS:GDSM) Takes Off on Corporate Update

It’s been a while since gold stocks were in fashion, especially now that the rush is for the “green gold” of marijuana. But here we have a gold prospector coming into view again, hot out of the sub-penny range. We have not seen Gold Coast Mining, Corp. (OTCMKTS:GDSM) since 2012, but things were uneventful- or rather, negatively eventful, as the ticker went down from a few cents to triple-zero prices.

But 2014 awakens many sleepers, and finally, it was the turn of GDSM. Wednesday brought this stock upward by exactly 100% to $0.001, on buying volumes above $951,000. In the past trading days, GDSM picked up in activity, and boosted its stock price by 10 times- a feat not unusual for a bottom-dweller. But what could take up this forgotten gold-digger and bring it among the most actively traded?

Currently, the ticker is not promoted, and the only reminder is a recent corporate update from February 11th, which ignited the whole thing. The company announced it is in negotiations to purchase gas wells using debt capital- a slightly worrying prospect, but keep in mind that the talk is rather preliminary. Also, there is a mention of oil wells- a moving away from the initial gold claims. While we can’t know if any of the wells will turn profitable, GDSM promises there would be updates on the negotiations- and that would mean at lest increased publicity.

Unfortunately, we don’t have a SEC report for the company, and the self-reported data on the OTC profile look dismal:

• Zero cash

• Zero assets

• Zero revenues

• $806,000 total current liabilities

Add to this a whooping 2.3 billion shares outstanding, with further 3.5 billion authorized, and GDSM starts looking much shakier. And now, there is a single speculation that GDSM may not see oil drilling as enough- and may find a creative way to attach itself to the marijuana industry. It’s a wait-and-see situation, though quite diverse businesses so far have managed to write the magic word next to their ticker symbol and invite investors. So keep in mind that for a GDSM in a new field, the same red flags apply.

A recent story unfolded that resembles GDSM, that of triple-zero stock Health Sciences Group, Inc. (OTCMKTS:HESG). This extremely underpriced selection boomed to increase its value eight times, only to slide back and stagnate at $0.0004. HESG also harbors numerous risks, and was chosen for its potential to rise in the short term.

Another mover with an extremely low price was Triton Distribution Systems, Inc. (OTCMKTS:TTDZ), which rose on the news it would become an OTC shell for a developed travel company. TTDZ now stands at $0.0031, about 10 times the value at the beginning of the climb, but the gains are slower now.

If you still like GDSM at this positions, keep in mind that even at this low price, sharp corrections are not inevitable. Invest accordingly and remember that “cannabis” is not a magic word that keeps shares from volatility, quite on the contrary.