New Pump Round Whipped Up for Ghana Gold Corp. (PINK:GGCO)
After failing to achieve much with their previous pump emails, promoters took another stab at Ghana Gold Corp. (PINK:GGCO) over the last few days.
Pumpers from Stocks Gone Wild who bagged a very decent $35 thousand in compensation for promoting GGCO stock, emailed their fortunate subscribers another pump today, following up on their weekend tout of the company. GGCO has been pumped virtually throughout the second half of January. After a spike on the first day of promos, the stock has been pretty much constantly slipping, going from a close of $0.21 to yesterday’s close of $0.05, despite the thousand of dollars being tossed around for promotions.
While pumpers were busy running technical analysis on the stock’s movement, rendered irrelevant by the presence of an ongoing pump campaign, investors could instead turn an eye to GGCO‘s latest financial report for the quarter ended September 30, 2012. It contains the following:
- $1.1 thousand in cash
- $318 thousand in current liabilities
- $987 thousand reported revenue
- $237 thousand in net loss
Next to zero cash and net loss in the hundreds of thousands for a single quarter is hardly exciting news. The filing states that since inception the company has financed its activities solely by the private placement of stock. According to the same report, GGCO has undergone two reverse splits over the last three years, one reportedly at a ratio of 1 new for 1000 old shares, the other at 1 for 970. Each reverse split was followed by the issuing of new shares that brought the outstanding shares at or above the number before the split.
The company’s headquarters address doesn’t precisely command respect as well. According to their listed address on their OTCMarkets page, GGCO seems to run its operations out of a small suburban house in Florida.
The promoters at Stocks Gone Wild have pumped similarly shaky ventures before. Their late November pump of Global Stevia Corp. (OTC:GSTV) ended up in disaster for everyone who got onboard, as it simply came too late to make any kind of profit. The stock is currently about 80% down from its pump price.
Do your own research and be extra careful with promoted penny stocks. Their movement both up and down the charts is largely triggered by promotional efforts and not actual company performance.
