Pershing Gold Corporation (PGLC) is being traded in the market having price correction; as Pershing Gold Corporation (PGLC) and Continental Resources Corporation (CRGC) jointly announced Continental’s record date for dissolution and liquidation. The record date for dissolution and liquidation is March 01, 2013. Let us review the recent market response of PGLC. In 2012, PGLC was traded at a highest price of $0.97, the lowest prices of $0.25 and the year end market price (on December 31) was $0.39. It is found that the price of the stock was almost stable from April to December in 2012. Following its likely win-win exchange of stocks with CRGC, the price was considerably increased in last week of January in 2013. In 2013, the highest market price of this stock was $0.60 due to the above reasons. The stock experienced buy pressure at that time. The company was traded at a closing price of $0.43 on February 22, 2013 with a decline of $0.17 from the peak of January. The effect of dissolution and liquidation as well as stock exchange proportion with CRGC has made a temporary downtrend of price though it is higher than year end price. Thus, investors are monitoring the last moment’s trading of CRGC and impact of PGLC following this record date, which may cause slow trend of PGLC. Another reason may be that exchange of one share with another one may cause anyone of them overvalued and another undervalued; which reflects in the market to have temporary price correction.
Will it continue to decline or get upward trend after record date of dissolution and liquidation of CRGC? Although sometimes market does not response or follow company fundamentals, we may not forget that liquidation of CRGC shareholders gives right to get share of PGLC. As both PGLC and CRGC decided the above resolution and liquidation, I personally believe that they have anticipated something better result with this action.
I sold a third of my PGLC at .60c thinking that there would be a price drop when the 2 companys were combined because of the extra shares on the market . Also knowing that they will need more money to finish there drilling and start up the mine in 2014 and figuring that Dr Frost will end up getting another persentage of the company for his cash . At these prices I feel that all this being said PGLC is one of the best value investments on the market . With the expanded land leeses and the alreaqdy found gold on the property PGLC has a great future ahead for the long term investor . I am going back in now and will be buying more in the future . Good luck to all .