Global Equity International Inc. (OTCBB:GEQU) Spikes On Pump
Global Equity International Inc. (OTCBB:GEQU) managed to add 37.70% to its market value fueled by yet another PennyStockDream pump.
At this point, there could be little doubt that it was the pump that did the pushing that launched the ticker up the charts. That particular promoter outfit has been coming up with sporadic touts of GEQU, and so far it has had success in attracting attention. Interestingly enough, there seems to be no mention of a paying party for these particular promotions in the disclaimer of its pumps, or anywhere in its site, in spite of its legal obligation to state such details.
This certainly does not add to GEQU‘s credibility – but then again, not much else does, either.
For starters, the company’s financial report for the quarter ended June 30, 2015 gave some pretty miserable numbers:
- cash – $734
- current assets – $52 thousand
- current liabilities – $3.9 million
- quarterly revenues – $1.1 million
- quarterly net income – $373 thousand
And if you think these numbers are depressing, wait until you see a picture of the company’s share structure over the last few months:
- As of November 11, 2014 GEQU had 33.7 million outstanding shares
- As of August 12, 2015 GEQU had 482.3 million outstanding shares
This staggering amount of dilution is the direct result of GEQU‘s over-fondness of using toxic convertible to fund its operations. And it would in no way be an exaggeration to say that said convertibles are a very real, immediate threat to investor value. Suffice it to say that the stock that has been issued in July 2015 came into existence at rates ranging from $0.00045 to $0.0007.
So at the end of a day, what does GEQU have to its name? A pump, some meager financials, a ton of dilution and the threat of toxic convertibles. Investors would do well to consider all of these glaring red flags before they commit to GEQU, because as it is, the company is walking on thin ice indeed.
