Nikolay Tomov
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NSGold Corporation Stock (CVE:NSX), (PINK:NSGDF) Produced a Record Volume

by Nikolay Tomov May 10, 2011
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The shares of NSGold Corporation (CVE:NSX), (PINK:NSGDF) marked a dramatic increase in the trading activity on the TSX Venture Exchange (CVE). For two consecutive sessions, they go beyond the 2.5 million mark. This exceeds almost seven times the average turnover of the stock on the Canadian market. This is also a record for NSGold Corporation. This comes on no new announcements or developments too.

NSGold_-_Chart_-_10_May_2011.jpgWhat is equally important, is that a surge in the price occurred parallel to the volume spike. NSX has moved 21% up since Thursday. At present, it is back at $0.60 where it was in late April.

Is the current rise a late reaction to previously announced by the company news? Quite possible. The latest announcement is from a week ago and sounds more than positive. NSGold happily informed the public about an 80% jump in the estimated resources at the Mooseland gold project in Nova Scotia.

However, the great news did not manage to impress anybody at the time it was released, namely last Tuesday. Even worse, the same day NSX noted a decrease in its price. Perhaps, traders reacted to the announcement with a little delay and their response became evident these days.

Well, maybe the current advance of the stock is speculatively driven!? Hum... this is quite possible too. In the lack of any other information, we might make all kinds of suggestions. This one, at least, seems probable and satisfactory. Is it enough? It is up to you, the reader, to decide.

NS_Gold_-_Logo.jpgThe financial condition of the company is not solid as a rock either. NSGold has no cash flows from operations and at the end of 2010 it had a working capital of just $1.3M.

Please let me leave you, the reader, with the pleasure to decide how to evaluate the following sentences from the latest financial statements of NSGold: "In addition to its working capital requirements, the Company must secure sufficient funding to maintain legal title to its resource properties, to fund its exploration and development activities and to fund its general and administrative costs. Such circumstances lend significant doubt as to the ability of the Company to meet its obligations as they come due and, accordingly, the appropriateness of the use of accounting principles applicable to a going concern."

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