Gediminas Jasionis
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Stock Split Is About To Increase Price Of Golden Dawn Minerals Inc. (CVE:GOM) (PINK:GDMRF)

by Gediminas Jasionis May 15, 2012
2gom_chart.pngGolden Dawn Minerals Inc. (CVE:GOM) (PINK:GDMRF) stock price shot up yesterday after the company was allowed to implement a reverse stock split.

GOM stock price added 20% on Monday. The trading volume was extraordinary 2 million, which was way above the 90 day average turnover of 244 thousand.

The stock price still moved within the range of its usual volatility, giving no edge to bears or bulls. The intraday price action was choppy and seemed as if lacking liquidity despite the large number of shares traded. The whole gain was recorded at the end of the session though, which in many cases calls for continuation the next day.

The interest of traders arose from the latest news the company issued by the end of May 14 trading day. Golden Dawn stated that the Canadian Venture Exchange has approved the proposed share consolidation, meaning a three for one reverse stock split will be done today.

5gom_logo.jpgThis was authorised by the shareholders of the company in a meeting two weeks ago. The split effectively reduces the outstanding common share count to 37.6 million, and theoretically the market price should adjust accordingly by going up.

In another press release issued on Monday, the company also declined to have any knowledge of a phase I drilling program having commenced on the Royal Attwood project in British Columbia, contrary to the statements provided by Hi Ho Silver Resources Inc. Golden Dawn reminded they are the sole operator on the project and Hi Ho's statements were issued without their consent.

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