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Pershing Gold Corporation Message Board

  • investora2z investora2z Feb 25, 2013 8:12 AM Flag

    Watch closely

    Continental has been holding Pershing shares since July 2011. At that time Pershing purchased assets of Continental through a deal where shareholders of Continental were given shares of PGLC in a ratio of eight shares for every ten shares of Continental. Now, as a logical and legal consequence, they have jointly announced that Continental has set March 1, 2013 as the record date for Continental's dissolution. CGRC's liquidation will start shortly thereafter and the distribution of Pershing common stock to Continental shareholders will also take place subject to regulatory approvals. Continental's shareholders have already approved the dissolution in 2011. This will help completion of the deal and will combine the two entities totally. Now that the stock is nearing its 200DMA of $0.40, it is possible that some sort of rebound will take place. Historically also, the $0.30 to $0.40 levels have held with strength and are areas where investors tend to accumulate. It can be a good idea to do that keeping a stop loss at the lower end of the support zone. With management confidence that production of 50K oz of gold will commence within less than one year from now, it is sensible to keep patience at these long term lows. Dr. Frost and other big fishes are also likely to find it attractive at these levels specially after the dip they have taken a few weeks back. All this put together signals that the possibility of a bounce back to short term highs is highly likely. Of course, $0.49, the 50DMA which is very near the $0.50 round figure level, is likely to provide resistance to the stock on its upward journey. Beyond the $0.55 levels, the next stop will be $0.75 and $1.05. That seems a little far but if there is traction at 200DMA, all this may happen sooner rather than later. Let us watch closely.

4.15+0.18(+4.53%)1:10 PMEDT