The Pump For Great American Energy, Inc. (OTCBB:SRBL) Continues

It is yet uncertain if American Energy, Inc. (OTCBB:SRBL) will be able to pull off what they have planned. At least what they have said they have planned.

Yesterday, SRBL‘s stock made a pretty good jump from $0.70 to $0.76, but the volume of traded stock was rather low. Maybe people are starting to see what is going on, but they still believe the stock that they have purchased is worth more.

This might be due to the fact that the company has allegedly entered into phase 1 of exploration of their property in Bear Creek. This is refreshing for investors, however, we can’t figure out how they are going to pull it off. Let’s take a look at what they have in their latest financial statement covering the period ended December 31, 2012, of which the number of prime interest are listed below.

cash: $22 thousand
current liabilities: $23 thousand
Revenues: $0 for 2011 and 2012
net loss: $413 thousand

They are telling investors that they are “encouraged” to go further with their exploration, however, we don’t see how this is going to happen with their financial state. The fact that they have over $300 thousand in operating expenses leads to the question if they are going to be able to sustain themselves for the future with no revenue.

Another factor is the pumper that we warned you about in our previous articles about SRBL. After the pumps SRBL‘s stock is going up, with people believing that their stock is worth something. SRBL haven’t actually made any  revenue and the hype is all about press releases. The press releases are optimistic, but they give no insight for the investors. Some people get fooled and invest in their stock while the only profit that the company gets is from stock trading.
In this run of thoughts one would see that the stock is risky and doesn’t really give a profit advantage. In case you want to invest in them, be sure to do your due diligence and weigh out the risks