The Stock of Nevada Gold Corp. (OTCBB:NVGC) Soars on Pump Hype

With the increased hype created around Nevada Gold Corp. (OTCBB:NVGC) their stock is making a rather steep climb and yesterday it closed another 9% up at $0.415. Investors are maintaining their heightened interest in the company and the number of traded shares was once again above 3 million resulting in an impressive dollar value of $1.3 million.

The pumpers Stock Castle and WallStreet Advisors are diligently issuing a new alert email almost daily but that isn’t such a big surprise when they expect to receive $800 000 for their services. NVGC themselves are doing their part by giving the pumpers something to talk about and yesterday they released another PR article after the market had already closed. Apparently they have hired ALS Chemex Labs to carry the testing of the samples from NVGC‘s Diamond Jim Mine.

This however doesn’t mean that the results will be encouraging enough to cover for the costs of production especially when the company has no operations and atrocious cash reserves. NVGC finished the quarter ending August 31 with just $14 in total assets. Even the currently hyped mine property is under question. NVGC signed an option agreement to acquire 75% of the mine but in order to do so they had to pay $5000 by September 30 with another $120 thousand by the end of the first year. After that the required sums become considerably higher.

The pump emails may be able to push the share price higher for now but even the current market cap of $22 million is way overpriced for the company to support on their own. Not to mention the disastrous effect that the 28 million shares sold to insiders for just $0.002 can have if they decide to dump them on the market. If you already have a position in NVGC be sure to set appropriate time horizons for your investment. Otherwise it is best to skip them altogether and look for a lot less riskier choice.

Yesterday the pump for Pan Global Corp. (OTCMKTS:PGLO) crashed for a second time wiping out nearly 40% of its value. The new round of emails touting the company failed to prevent the drop and in early trading today the stock is still sliding downwards, currently sitting at $0.35.