Global Equity International Inc (OTCBB:GEQU) Marches On

Pennyland is a strange place and if you’re new to it, you have to be prepared for many things that you have probably never expected to see. It’s the only place for example, where you’ll see stocks being touted through the email. And it’s the only place where you’ll see such promotional activity actually having an effect on the market. But don’t take our word for it, have a look at Global Equity International Inc (OTCBB:GEQU)’s performance from the last few months.

Back in June, GEQU was just one of the many illiquid penny stocks that were getting little attention from investors. Volumes were as good as gone and the ticker was sitting quietly in the deep end of the double zero pool. It seemed pretty content with that situation, too.

Then, at the beginning of July some emails started flying around and the movement was instantly visible. GEQU wasn’t in a hurry at first, but it gradually gained momentum and it’s been going strong ever since. At the beginning of September it broke out of sub-penny land for the first time since December 2014, but it wasn’t about to stop there. The $0.02 mark was dealt with with ease and yesterday, thanks to a 44% push, the ticker emerged over $0.03 per share.

The pumpers shouldn’t get all the credit, though. The company has also been hard at work keeping investors excited. More than a few new partnerships have been announced recently and on August 12, GEQU also filed its 10-Q for the period ended June 30. It looks like this:

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

On the face of it, things don’t look too bad, especially by the low OTC standards. The net income and the revenues in particular could make a lot of people tremble with excitement. The thing is, once you take a closer look, you might be having a few second thoughts. A large portion of the revenues consist of some stock (both common and preferred) in a private company that was acquired in exchange for services. The stock in question has yet to be turned into cash.

The really big problem doesn’t lie with the revenues, however, it has to do with the colossal number of discounted GEQU shares that a few third parties acquired in an extremely short period of time. As we mentioned in some of our previous articles, in a matter of just over a month, JMJ Financial and LG Capital (two financing providers whose names are probably familiar to the more experienced among you) got nearly 75 million shares as a conversion of debt at an average rate of $0.0005 per share.

The company promised that it will no longer fund its operations using toxic notes, and a certain 8-K form from a couple of weeks ago suggests that some steps are taken in that direction. Even so, the possibility of a vast number of hugely discounted shares hitting the open market shouldn’t be overlooked.

About forty-five minutes after today’s opening bell, GEQU is playing with the $0.04 mark and it’s hovering about 8% above yesterday’s close.