Global Earth Energy Inc (OTCMKTS:GLER) Jumping Up Again

Failed acquisitions, mergers and joint ventures, stock promotions, dilution and depressing financial statements. It might not be a very detailed, but it’s a pretty accurate description of Global Earth Energy Inc (OTCMKTS:GLER)’s history over the last couple of years.

The small cap company comes up with a wave of press releases every now and then explaining how they have changed their business plan and how they will finally start making money and create value for their shareholders but every single time, something goes wrong, the deal gets called off and instead of boosting the share price, GLER crush their tormented stockholders with yet more dilution. If you look through their dealings from the last couple of years, you’ll see that trusting the management team is not the easiest thing in the world and yet, the chart at the beginning of the article suggests that people are still willing to put their money in the ticker.

The latest wave of interest started about a month ago when GLER announced that they have closed a partnering deal with an entity called Hawk Manufacturing, Inc – a venture focused on acquisition of manufacturers of complementary products. A stock swap of 20% in each company was carried out and everyone is hoping that the agreement will finally bring some revenues to GLER‘s future financial statements.

The news about the partnership came out on August 28 and it immediately gave the almost forgotten ticker a push. A couple of sessions later, it was out of the triple zero territory and things were looking good. Then, on September 9, another press release informed us that Hawk Manufacturing are about to close the acquisition of not one, not two, but four entities, that, collectively, will bring tens of millions of dollars in annual revenue.

Normally, this sort of announcement would give the price an immense push, but it would appear that in the case of GLER, things stand a little bit different. The ticker lost 40% in just six and a half hours of trading and the lack of any news during the following weeks meant that the price was taking a beating.

On Friday, however, GLER informed us that the first of Hawk’s acquisitions has now been completed and it would appear that investors are mightily optimistic once again. The last session of the week finished with more than 268 million shares changing hands, which resulted in a dollar volume of nearly $330 thousand and 75% in gains.

The press release does suggest that the future is bright. The new daughter company is called Trump Equipment, it sells and leases used trucks and trailers, has forty-eight full-time employees and around $15 million in annual revenues as well as $2 million in earnings before the income taxes. Apparently, some people think that this is enough of a reason for them to jump in and start waiting for the share price to go sky-high. Once again, we’re not so sure.

As we mentioned in the first paragraph, GLER have a history of issuing press releases through which they try to convince their shareholders that revenues and, more importantly, profits are just around the corner. They have failed miserably many times, which means that waiting for the next financial statement (which should contain conclusive proof that the partnership with Hawk Manufacturing is indeed a positive development) is probably your best bet.

In the meantime, all you can do, is a little bit of research on Hawk. While you’re at it, you might want to check the address of their principal offices which, according to some company profiles over the internet is 4203 Brookview Way, Summerville, SC. As you can see from this picture, Hawk appears to be headquartered in a rather good looking residential complex equipped with a couple of tennis courts. We’ll let you decide whether that’s a good sign.

Other tickers that gained some value during Friday’s session include Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) who jumped out of oblivion after some optimistic coverages hit the wire and Soul and Vibe Interactive Inc. (OTCBB:SOUL), who, thanks to another campaign initiated by the pumpers, are back on the list of heavily traded penny stocks.