Global Clean Energy, Corp. (PINK:GCEI) Prepared for Launch by Two Pumpers
The beginning of a new month is making investors load up on the hottest offers in small cap companies, and this lifted the daily volume for Global Clean Energy, Corp. (PINK:GCEI) to an all-time record. The ticker, lifted on a tide of promotional mailings and PR messages on well-read news sites, has been significantly more active since the fall. The ticker added 40% on Thursday’s trading.
Eco-technologies and clean energy are common among promoted stocks, but GCEI has not been on our radar for several months. Since the daily volume breached the 10 million stocks in buying, it’s necessary to see what the company has to offer to the thousands of investors that took positions. Valued at 3 cents or a total current market cap of 3.3 million dollars, the company reported the following attorney-reviewed financial data:
- $3,260 cash
- $1.4 million in patents and rights
- $2.69 million current liabilities, mostly incurred by expenses
CGEI works on projects to convert waste to energy, and so far has not disclosed earnings past 2009, when it ended with a loss of $145,000 on earnings of $40,000. The low cash reserves put doubt on the company’s abilities to turn out amazing profits, and its 4-cent stock seems to be a short-term accessible bet. Added to this is probable valley-buying as the stock is still far from its peak in September, when it reached its 52-week high.
The GCEI promoters were silent between December 4th and January 30th when the new mailings arrived, courtesy of Penny Dreamers (compensated by $1,500) and 007 Stock Chat (with a budget of $7,500). The first email came even before the trading on January 30th, so this may explain why a lot of investors were prepared to take positions on the next day. We are looking forward to the end of the week and the potential correction.
The two pumpers are mentioning the potential of GCEI for future deals and partnerships, but the main power of this ticker comes from a mass hysteria of buying. To this is added the past history of pumps by Penny Dreamers, ending up with significant downside. Gold Dynamics Corp. (OTC:GLDN) was a similar double-zero fast bet which spiked on unseen volume on the December 10th mailing and later retreated to half its price on a period of low liquidity.