Discovery Gold Corporation (DCGD)
DCGD (Discovery Gold Corporation) has a market cap of $150 million which is a little shocking at first glance because its SEC filings show no cash . Although the statements show the company not having any significant operations, what is making investors excited that the company is working on a merger with another very successful company in the private sector. The primary operation of the old shell company was in the exploration of gold and developmental activities. DCGD was founded in 2010 and is based in Fort Lauderdale, Florida.
Investors believe that Justin Costello, the new CEO of the company, is a great businessman and will make DCGD one of the leaders cannabis industry. The Cannabis industry is very new and right now stocks move more on speculation than market fundamentals.
Some Are Skeptical
There have been some people who believe the merger is only temporarily driving the stock price up and these bearish traders are questioning the honesty and integrity of the management. The CEO acquired 56 percent of the company by giving the reverse-merging option to the banking investments company (GRN Holdings). Costello acquired 139M of the shares of the company for only $300K (~$0.001 per share). The Current price of the stock $1.28 a share which is a lot higher than the price paid by Costello on June 2019. The personal investments of the CEO is believed by some to be as much as $90M.
Investors are excited about the CEO’s background. Justin Costello is a Harvard Graduate. There is even some controversy behind that.
The 52-week range of DCGD is $0.0020 – $1.44. Despite the controversy behind the stock the stock price keeps going up.
What’s interesting about speculative stocks is that everyone talks and acts like they know what the share price will be. You have bears who believe the stock will fall back down and you have bulls who believe the stock will hit $100 a share. Both bulls and bears have their own interest at heart.
Besides just speculating whether DCGD will be the next big thing or if the company is an overhyped scam, the best thing to do is to watch trading volume and short interest. It can be very pricey to short a stock like DCGD. There have been market makers that have lost their jobs shorting a stock too early. There very well could be people on social media paid promote this stock and others paid to bash the stock. Pay attention to the chart. Pay attention to the SEC filings and any news. Make your own decisions.
Disclaimer: This article was originally written by Sumedha Rewar and since has been edited by Travis Garlick. Neither Travis Garlick or Sumedha own shares of DCGD. Neither has a short position. This article should not be considered financial advise, it was written for entertainment purposes only. Please consult your own investment advisor before purchasing shares of a security.