Last Friday the share price of Pacific Gold Corp. (PINK:PCFG) increased by 19%, the highest gain since November, closing at $0.034. The volume, on the other hand, shot up to the dizzy heights it had reached six weeks ago, eventually going beyond the 7.75 million marks or 172% more than the average volume.
At the very beginning of 2011, i.e on Jan. 3 PCFG issued an announcement that it had ordered a special piece of equipment that would improve the production process by reducing both production time and labour costs. A six-week delivery deadline had been mentioned too. No official news have come up since then. Neither has the 740-million-outstanding-share-company been a subject of heavy promotion for the last two months.
Altogether, the last time PCFG gave a comprehensive overview of its current activities and future projects stretches back to Nov. 23. Back then, this report boosted both price and volume. Yet, it rested on forward-looking statements as none of the projects seemed to have moved ahead of the planning stage. Seven weeks later, not a single word on prospective updates has been said. The latter might be the reason why many investors seem to be perceiving this sudden bustle of PCFG stock to be nothing more than mere speculation as an overture to a huge subsequent short squeeze.
Incorporated in 1996, Pacific Gold Corp. has its headquarters in Reno, Nevada. Previously known as Blue Fish Entertainment, Inc., PCFG has four operating subsidiaries whose main activities focus on the exploration and mining of mineral properties throughout the United States in search of gold and tungsten.
Being a high-volume pink sheet, PCFG appears to have ceased to file its financial reports with the SEC as its latest 10-Q report covers the period ending Sept. 30, 2008. The company has, however, been fairly prolific in filing 8-K forms. The last one was submitted in October and reflected the dismissal of the company's then current accounting firm for no other reason but PCFG's inability to pay for its services due to the lack of any working capital whatsoever.
While the present raise in PCFG stock activity has already favored a number of investors, the scattered and not-up-to-date company information might pose some unpleasant challenges in due course.