After the close on Friday, Goldman issued a positive-sounding research report on Liberty Gold Corporation (OTC: LGBO). Buyers rushing through the door at the opening this morning sent shares of the gold and precious metal exploration company to an intraday high of $0.95, or 16 cents higher than the closing price on Friday. Did the giant investment bank Goldman Sachs really issue a research report on a gold mining stock selling for less than one dollar? Goldman did indeed start coverage on Liberty Gold, but it was not the infamous firm located in New York.
Rob Goldman, a former analyst with Minneapolis-based Piper Jaffray and current head of Goldman Small Cap Research, found the large-scale mining successes of Liberty Gold quite impressive. In his report, Goldman felt the mining company has a bright future and offers compelling valuation potential. Even though it does not have Sachs at the end of it, traders may want to consider the worth of Goldman’s little nugget in the coming days.
Perhaps after discovering a case of mistaken identity, buyer enthusiasm waned after the initial buying surge this morning. By the time lunch hour rolled around on the east coast, share prices had declined 21 cents from the intraday high trade to a session low of $0.74. The stock finished the day with a gain of over 8% to close at $0.86. More than six times the average daily volume of 24,000 shares exchanged hands in the first 30 minutes. Volume steadily slowed to a trickle throughout the remainder of the session, but traders managed to swap 370,000 shares for the day.
Shares of Liberty Gold began trading in the middle of June. The stock touched its high for the year so far when it printed for $1.15 on just the second day of trading. At the beginning of July, share prices started to head down the mineshaft. By mid-July, the stock hit a low of $0.20. Like a bouncing red ball on cement, the stock has rebounded since the first of August. Today was one of the most active days for Liberty Gold shares since it appeared on the scene two months ago.
The day’s action certainly caught the attention of stock promoters and newsletters. A lode of current promotions can be found on Stockreads.com. OTC Tip Reporter named Liberty Gold the breakout play for Tuesday. The only chatter about Liberty Gold on Twitter came today from @MomentumTraders.
The only other news for Liberty Gold came nearly two weeks ago when the company announced it had doubled the size of the Alaskan McCord Creek Gold property.
Liberty Gold, formerly known as iBOS, focuses on the exploration and production of precious metals including gold. The company currently has projects located in Arizona, Alaska (not to be confused with the show Gold Rush seen on the Discovery Channel) and Mexico. The Phoenix, Arizona, company was founded in 2006.