Paid Research Report and Pumps for ARX Gold Corp. (OTC:DUCP), f.k.a. Daulton Capital Corp.
Over the last session Daulton Capital Corp. (OTC:DUCP) generated record share volume, assisted by numerous stock pumps. The heavy volume action did not manage to lift the price much and after spending most of the day below its previous close, DUCP stopped 2% up at the bell.
DUCP, as many OTC companies before it, is striving for success in the gold mining business. Yesterday different pumpers sent 13 emails advertising DUCP stock, compensations ranging from $4 thousand to $12.5 thousand, paid by third party Micro Cap Innovations, LLC. The promotions were padded with a so-called research report, published by Goldman Small Cap Research, whose disclaimer states that the ‘report’ cost a third party $8 thousand and more or less constitutes paid advertisement. The company itself, after keeping quiet and only posting filings for quite some time, came out with a conveniently timed press release exactly at yesterday’s opening bell, coinciding with yesterday morning’s promotions.
The press release concerned DUCP‘s intentions to mine gold in the ARX Springs Project. It’s strange that this information makes it as a headline just now, considering the tribute agreement for the property was signed back in March 2012, over a year ago. Part of the news is that institutional investors from an Indian bank are reportedly touring the property, contemplating financing its development.
Considering the current financial situation of DUCP as per their most recent filing, they are not really in a condition to start active work on the project unless they secure financing. The latest report from DUCP is a 10-Q for the quarter ended January and contains the following:
- $2 thousand in cash
- zero revenue since inception
- $545 thousand in quarterly net loss
With $7 thousand dollars under ‘General and administrative’ expenses for the full nine months ended January 2013, DUCP does not exactly seem like a company that is bustling with activity. The largest expenses that lead to the half-million net loss are recorded as professional fees, including $367 thousand worth of shares paid to an entity for services rendered. DUCP also happens to have 4.4 billion outstanding common shares.
Goldman Smallcap Research who published their so-called research report on DUCP, setting a price target of $0.30 for the company’s stock, previously published other such reports with similarly ridiculous price targets. One example is a report published on March 19, on Dethrone Royalty Holdings, Inc. (OTC:DRHC), setting a $0.50 price target for DRHC shares. Dethrone closed yesterday’s session at $0.03 per share.