Pacific Gold Corp. (PINK:PCFG) has entered another technical correction period after it provided a great speculative opportunity for the long side in October.
Truth be told, the announced share buyback program seemingly had a hand in the stock surge. The program was announced at the end of September in an official press release. It authorized PCFG to purchase up to 5 million shares of its common stock which in fact is only 0.7% of its total number of shares issued and outstanding.
Although, it is clear that the program does not obligate PCFG to make any purchases and can be terminated at any time, the announcement unlocked the positive impetus PCFG need to bounce at the $0.03 support.
The climb started at the beginning of October and continued until PCFG hit the overbought area. The last two weeks, though, indicated that the time to reap the gains has come.
The described plot happened without any new announcements or reports, which is indicative of the speculative nature of the stock. PCFG along with other gold penny stocks in the pink exchange may become even more speculative over time given that global gold prices are forecasted to hit $2,300 an ounce in 2012.
I guess if you buy the right junior gold mining stock you can really hit the jackpot as it were.
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