SKIPPACK, Pa., May 29, 2013 /PRNewswire/ -- GeoInvesting has been tracking Goldfield Corp. since it announced its major electrical construction contract win in February of 2012.
Goldfield is a leading provider of electrical construction and maintenance services in the energy infrastructure industry throughout much of the United States. On June 7, 2012 we published our bullish view of Goldfield on Seeking Alpha in an article titled, "Goldfield: A 'Four-Bagger' In the Making." The stock was trading at $1.60 at the time of our article and reached a high of $5.67 on March 25, 2013.
The company is holding its annual meeting on Thursday, May 30, 2013.
We are requesting the company adds a name and symbol change to its agenda for the annual meeting. We believe some investors assume, because of its current name, that Goldfield has gold mining operations when this in fact is not the case. Goldfield has been mistakenly added to several articles relating to gold's ups and downs over the past year. Since the company is clearly communicating that it is now basically an electrical construction operation company going through a new growth phase, we believe it is time for the company to evolve with this change.
Although one only needs to read the company's history page to know that its mining activities ceased over a decade ago...
"The Goldfield Corporation has had an interesting and colorful history. Goldfield was started in 1906 by George Wingfield as the combination of six of the richest goldmines in Nevada..."
Goldfield divested its last mining vestige with the sale in 2002 of its remaining mining properties in New Mexico..."
...some responses to our original article spoke to the fact that investors still relate Goldfield to gold mining activities. That leaves us to wonder how deep the lack of understanding in the company runs within the investing community:
"...Bought [Direxion Daily Gold Miners Bull 3x Shares] @ $7.99 2 weeks ago sold at $14.34; Will reload on pullbacks; 1 bagger every 2 weeks in a diversified fashion way better way to trade a single volatile $1 miner. Peter Lynch was not a fan of 'penny stocks' like [Goldfield]. We were in Magellan he NEVER bought a stock under $5.If Gold gets back up to $1800 we will have a 5+ bagger in [Direxion Daily Gold Miners Bull 3x Shares] ..."
"...10 year chart looks ugly like it has gone parabolic; unrelated to Gold price for a 'pump and dump' by market makers manipulation quite common..."
"...The company name is a little misleading, when you research it you will have to sift through all of the mining stocks mentioning 'goldfield.' Even the news articles on my trading platform related to [Goldfield] are not actually about the company..."
That last comment is very telling of how ubiquitous the misinformation is. Even the professionals are getting it wrong!
We also think it's time for the board of directors to take steps to increase communication with investors and share more specific insights into the growth drivers allowing the company to outperform its peers in its industry. We urge Goldfield shareholders to let management know it's time for a change.
Again, at this year's annual meeting, we implore Goldfield to consider our observations as well as the unfortunate interpretation among investors relating the company to the wrong industry. We believe the cost of implementing such changes will be more than offset by the eventual rise in the market value of the company's stock. We have provided management with several suggestions that the company should address when communicating its story with the market.
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Dan David, Vice President
Web site: http://www.geoinvesting.com