NOTICE: We have recently been made aware of an article on utopiacap.com which is falsely claiming that we were hired to promote Discovery Gold Corporation. This claim is 100% not true. All the companies we work with will be listed on our disclaimer page as well as disclosed on any and all articles and or news releases from that company.The PennyStocks.com Team
When you think of penny stocks, rarely do people assume to buy and hold these volatile securities. But for those who’ve been following the trend for gold stocks, one penny stock is hitting on all cylinders. Imagine one day you’re looking at a stock trading at less than 2 cents and within a few short weeks, a billion dollar fund starts buying up the penny stock.
That’s exactly what happened with one of the gold penny stocks that we’ve been watching this month. In fact, since the beginning of July, this penny stock is up by more than 2,900% so far and more than 300% from the time we first covered it as a gold stock to watch. Did you miss the first article? Check Out 5 Gold Stocks To Watch For July.
A Gold Stock To Watch?
Gold penny stock Discovery Gold Corporation (DCGD Stock Report) has been the epitome of what a penny stock is. The market was incredibly quiet and the stock barely traded. The last piece of penny stock news that was released was back in 2013. So a big question here is why would anyone buy this stock?
As we constantly say, “Do your research.” Those that did may have found out how to make money with this penny stock in July. A quick look at the OTC website will show cobwebs in the newswire section:
That’s when you have to dig deeper and check the financials. It’s not my usual rule of thumb to blindly buy penny stocks without knowing a potential catalyst (side note: I do not own any shares of this stock). So what did I find:
Three filings this year. One of them was a quarterly filing for the period ended 1/31/2019, the next was a corporate event designated by the 8-K, and the last was a Form filing (form 3). So let’s dig into these and see what they reveal because we know the company itself isn’t talking at all.
As far as the penny stock filing a 10Q, this is essentially a move to remain current in some way. If you don’t know this yet, companies (especially penny stocks) that fail to report quarterly and annual reports are at risk of being delisted. Being that a public company is still a valuable asset, anyone in control of one would be hard pressed not to keep the business current in the event that there’s an opportunity to start turning revenue.
Will This Become A Pot Penny Stock?
The 8K is where the interest lies. DCGD did a stock purchase agreement with GRN Funds, LLC which is headed up by Justin Costello. He’s a Harvard Business School Alum and graduate of the University of Minnesota in Public Business Administration. So at least we know his education is related to running a business. Furthermore, GRN Funds is no small firm showing over $1.1 Billion under management.
What’s interesting, however, is that GRN doesn’t show any mining companies in its portfolio. In fact, the majority of its portfolio is focused on CBD companies.
Speculation aside, it isn’t unlikely for groups to take over public companies and then merge different companies into the public company. So, needless to say, it will be interesting to see what comes next. Summer months are usually pretty quiet for marijuana stocks. But the recent spark in gold may have helped for the time being especially considering the company’s name.
For this penny stock, we’ll continue to report on new developments along the way. Stay tuned.