Genesis Electronics Group Inc (OTCMKTS:GEGI) Starts the Week on the Wrong Foot
It’s not difficult to see why Genesis Electronics Group Inc (OTCMKTS:GEGI) is a triple zero penny stock. The company (whose headquarters appears to be located in a cafe) was once an SEC filer and its stock was being pumped by some people who were saying that we could soon see a partnership between GEGI and Apple Inc. (NASDAQ:AAPL).
Their promises never really materialized. Instead of signing a partnership with the electronics giant, the company stopped filing its financial reports with the SEC which, naturally enough, led to a decline in the trading volume and share price.
Last year, GEGI‘s management team finally decided to terminate the SEC registration and start using the alternative reporting standards. Unfortunately, the adaptation to the new rules has taken an extremely long period of time. The 2014 annual report and the one for the first quarter didn’t appear until about a month ago, and although they said that they will be ready with the Q2 statement on or before August 20, right now, almost three weeks later, it’s still not out.
The most recent figures are now well over five months old and they aren’t too pretty:
- cash: $1,232
- current assets: $732,567
- current liabilities: $1,773,611
- NO revenue
- quarterly net loss: $107,176
Not the encouraging financials you expect to see from an emerging mineral exploration company, you have to agree. Nevertheless, while they appear to be too busy to file a more up-to-date report, GEGI‘s management team apparently have enough time to spend convincing you that things are looking better at the moment.
First, in July, they issued their first press release in a very long time when they said that they have secured $2.5 million in fresh financing. Later, they announced that thanks to the cash injection, they have received approval from The Bureau of Land Management to commence activity on their Mav5-E lease.
The news stirred up the stock and on July 2, it managed to reach a close of $0.0009 per share. Unfortunately, the hype dissipated quite quickly and by the beginning of last month, it was pretty much back at square one. Currently, it’s on another run.
A couple of interesting sessions last week pushed it to $0.0007 and although it slipped yesterday and closed at $0.0006, it also logged a record-breaking volume of over 199 million shares which goes to show that people are still quite excited about the company.
The only difference between the current run and the one from a couple of months ago is that at the moment, GEGI is not propelled by actual news. Instead, it’s all due to some people who say that after contacting him, Raymond Purdon, GEGI‘s CEO, has assured them that good things are coming their way.
Basically, people are pouring money into the stock because a random person on a discussion board has said that the coming weeks and months could be good. We’ll leave it up to you to decide whether that’s a good enough reason to invest in the ticker.
While you’re contemplating the risks, however, you might want to check out our previous article which talks about how the $2.5 million cash injection from July comes courtesy of a convertible note, the terms of which remain undisclosed. You might also want to pay closer attention to the Q1 financial report which will tell you that during the first three months of the year, most of which were spent comfortably above the $0.001 mark, GEGI converted about $10 thousand worth of old debt into stock at a rate of less than $0.0004 per share.
