Blue Earth Res Inc (OTCMKTS:BERI) Gets a David Cohen Pump
In November 2013, an entity called InvestRelate received $15,000 and decided to publish what they like to call an “Independent Analysis and Price Projection” for Blue Earth Res Inc (OTCMKTS:BERI). According to it, the ticker deserved a short term price target of $4.58. They didn’t really specify what they meant by “short term”, but right now, seven months later, the least we can do is check on the company and see how it’s doing.
Sadly, things are not looking good. When InvestRelate issued their report, BERI was floating comfortably above the $1 mark. Currently, it’s struggling with the $0.80 barrier.
A couple of days ago, Research Driven Investor and the rest of the RDI LLC controlled newsletters decided to give BERI a second shot at climbing the charts. Of course, they didn’t do it for free. According to the disclaimers, David Cohen’s promotional firm has received $30 thousand for the campaign.
It would appear, however, that BERI is proving to be too tough a nut to crack. Yesterday, it opened the session at $0.79 per share (a 16% gap up), peaked to $0.94, but then dropped back down and finished the day at $0.76. This is still a healthy 12% in the green, but in light of the intraday performance, it’s not that impressive. What’s more, BERI ended the day with a dollar volume of around $886 thousand which means that a lot of money is now at stake. The question is: “What will happen next?“.
The press releases don’t sound half-bad. Yesterday, BERI announced the initial results from the workover at one of their Louisiana properties and said that things are looking up. They have also been working on a project called “The Blue Earth NASDAQ Initiative” whose aim is to uplist the stock on one of the national exchanges.
Sadly, while the announcements certainly sound optimistic, BERI are unable to come up with a set of figures that could justify the enthusiasm. Here’s what we find in the report covering the twelve months ended February 28:
- cash: $71 thousand
- current assets: $75 thousand
- current liabilities: $30 thousand
- yearly revenue: $280 thousand (a 24% drop year over year)
- yearly net loss: $3.1 million
If BERI are to capitalize on their properties, they’ll need to raise quite a lot of cash and the same can also be said about a potential uplisting to one of the major exchanges. Will they be able to do it?
Only time will tell. In the meantime, a potential investment should be preceded by a careful consideration of all the risks.
The promotional campaign could wreak havoc with the price in the coming days. It could even have some longer term effects. The chart on the right, for example, belongs to Everlet Inc (OTCMKTS:EVLI) – a penny stock that received a pump from Research Driven Investor back in February. It shows that the people who got a bit carried away with the excitement are now looking at some pretty horrific losses.
