Global Earth Energy Inc (OTCMKTS:GLER) Crashes Again

Trusting your money with Global Earth Energy Inc (OTCMKTS:GLER) is not the easiest thing in the world. For one, the stock never fails to remind us how volatile exactly it is.

Take last week’s trading, for example. On Monday GLER impressed us when in a matter of just six and a half hours of trading, it managed to gain no less than 50%. Unfortunately, the following sessions weren’t quite as optimistic. The ticker finished Tuesday and Wednesday in the red and although it managed to regain some composure during Thursday’s short session, it slid by as much as 26% on Friday while shifting more than 250 million shares. The current price stands at $0.0025 which means that GLER‘s market cap hovers just above the $1 million mark.

This doesn’t sound like much but, as we mentioned in our previous articles, it might be a bit of a stretch for a company that, according to its latest 10-Q, has no assets whatsoever. This might be the reason for Friday’s drop or it could be, as some investors around the discussion boards suggest, a simple consolidation that precedes a more prolonged run in the right direction.

Many believe that this is indeed the case and that GLER are finally on the way to success with the latest collaboration with Hawk Manufacturing. Are they right, or are they about to get burned though?

Well, let’s take a look at other penny stocks that got propelled towards the higher end of the charts by news of recently completed acquisitions. American Community (OTCMKTS:ACYD) is one such ticker. They announced the closing of the merger with Wialan Technologies, Inc. back in late August and shortly after, the ticker started shuffling. The run was particularly noticeable over the last couple of weeks which resulted in the share price touching $0.08 for a brief moment. The last four sessions, however, proved that these sort of levels were way too high for a company that has yet to file a report less than seven months old and after closing Friday another 5% in the red, it settled about 33% below the value recorded a week ago. ACYD‘s shareholders still have no idea how stable the new company is in terms of financials which makes any predictions about the future based on nothing more than guesswork.

Things are a little bit different with ALJ Regional Holdings, Inc. (OTCMKTS:ALJJ). The press release informing us about the acquisition of Faneuil, Inc came out on October 18 and it sent the ticker flying. Seven days later, they filed Faneuil’s pro-forma financial statement which sported some solid numbers and proved that ALJJ‘s new subsidiary is a real, working entity. Predictably, safe for a few inevitable corrections, the ticker has been putting on a rather stable performance over the last couple of weeks.

So, what’s going to happen with GLER? Will it continue sliding like ACYD? Or is it going to remain steady and aim for the higher levels? We’re about to find out, but as we mentioned in our previous articles, there are some things worth considering.

Hawk Manufacturing is praised as a working and possibly profitable enterprise and yet, it doesn’t appear to have a website. In a frustrating search to find some more information about GLER‘s partner, we stumbled upon Hawk’s articles of incorporation. As we mentioned, it would appear that the entity was established just four months ago and this raises some questions around the success of GLER‘s new collaborator.

Of course, Hawk might end up proving all the skeptics wrong and coming up with a solid balance sheet, but until they do, keeping all the facts in mind is definitely your best bet. Especially considering GLER‘s long history of failed joint ventures, terminated contracts, and financial reports full of zeros.