Siga Resources Inc. (OTC:SGAE
, SGAE message board
) is a California-based mineral resource exploration and development company. After the close on Friday, the company made an announcement, and yesterday there were some paid promotions
It's not clear whether the promotions will really help SGAE at this point. The previous PR gave the price of SGAE stock a significant boost - up 30.19% on Thursday. On Friday, SGAE closed up 1.45% at $1.40 with a relatively small volume of 11 thousand shares.
The last time SGAE was promoted, the result was disastrous. It was Sept. 12, and the chart says it all.
This timed, one promoter got $10 thousand and the other $15 thousand as compensation for their services.
As for the PRs, the one from Thursday was an update on the evaluation of SGAE's Lucky Thirteen project. While it didn't provide any concrete information, it was welcomed by the traders, although it should be noted that according to FINRA's daily short volume nearly all the volume from Friday was short.
The PR which would have its effect today is about a Letter of Intent signed with N.G. Vega Company on a group of Mexican precious and base metals concessions. Again, it is not something definitive.
The result of the PR and the paid promotions will be seen today. As with all investment decisions, traders should be careful and do their due diligence.