Global Equity International Inc (OTCBB:GEQU) Becomes Unstable

Yesterday the stock of Global Equity International Inc (OTCBB:GEQU) barely avoided another red close. Thanks to slowly climbing upwards during the trading day they finished the session with a gain of 4.76% at $0.044. In less than four months the ticker has surged up the chart from a low of $0.000 to a high of $0.0494.

The uptrend has been supported by a couple of new partnerships and agreements announced by GEQU. The company also managed to return to the OTCQB marketplace. Is a market cap of close to $34 million a fair valuation for the company though?

Especially when you take a look at the latest reported financial results. According to the quarterly covering the period ended June 30 back then GEQU had:

• $734 cash
• $52,490 current assets
• $3,899,798 current liabilities
• $1,140,500 revenue
• $372,802 net income

Although having a positive bottom line is quite rare for a pennystock GEQU were only able to achieve this thanks to $865 thousand worth of stock in the private company Duo World Inc that were issued in exchange for services.

GEQU have announced that they have been able to deal with all of the convertible debt the company “mistakenly” agreed to back in 2014. However, before they could do so 75 million shares were issued through conversions at an average price of $0.0005 per share. Hundreds of millions of shares were also issued to insiders of the company as a conversion of debt owed to them. This resulted in a massive dilution of the common stock with the number of outstanding shares growing from 36.3 million at the start of the year to 752 million as of August 27.

When you add the pump carried out by the outfit Penny Stock Dream and the risks around GEQU become even more serious. The stock is currently sitting at unstable price ranges and a sharp reversal is definitely not out of the question. In fact, in early trading today GEQU are falling hard currently sitting over 11% in the red at $0.0390.