November 16, 2012 at 19:17 PM EST
The Stock of Grizzly Gold Corp. (OTC:GRZG) Didn’t Liked Anyway
Until yesterday, the stock of Grizzly Gold Corp. (OTC:GRZG) had been enjoying an extraordinary and continual surge on the charts. Since the stock ramped up its value through fairly artificial pumping techniques, its imminent failure was only a matter of time. Yesterday, GRZG dropped down over 47%, both to the delight of the players behind the pump and the detriment of those greedy fellows who failed to resist the temptation to get out on time. Thus, the bubble finally burst leaving a great many investors empty-handed, mainly because of their empty-headed market attitude. And while novices traders could be excused for not having learned to detect such wicked schemes, those who pretend to have gained thorough experience in penny stocks could have hazarded a guess about such a scenario given that www.otcmarkets.com has recently been abundant with promotional alerts for a handful of penny stocks including GRZG. In addition, there are also other factors investors could have taken into account when evaluating GRZG, the promotional hype notwithstanding. With 47.9 million shares of outstanding stock at hand and a market price of $0.75 per share, GRZG's market cap clocked somewhere in the neighbourhood of $36 million as compared to a close to $83 million just a week earlier. At the same time, the gold projects developer has not made a dime of revenue since inception ( i.e April, 2010) and its total assets barely crack the $90,000 mark as of Jul. 31,2012, or 1/400 (0.25%) of its present market cap. If this is not enough to ring your alarm bells, what else would you need? Anyway, the pump may have subsided now, but has GRZG weathered the storm? The simple fact is, the stock lost a staggering 47% of its value during yesterday's fiasco by dropping from $1.44 to $0.75. To revert to the former value, the company's stock will have to go up 92%. How does this hypothesis relate to your expectations of GRZG's immediate future?
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