Global General Technologies Inc (OTCMKTS:GLGT) on a Rumor-Induced Run

As far as the official filings are concerned, Global General Technologies Inc (OTCMKTS:GLGT) is a public shell that has absolutely no assets and no operations. There has been no financial reports since 2011 which means that there’s a caveat emptor badge on the company profile at the OTC Markets website.

With that in mind, the ticker’s position at the beginning of the year was hardly surprising. GLGT was stuck firmly to the bottom of the chart, there was no news, no volumes, and it looked like the company is waiting to be suspended and then revoked by the SEC (something that has happened to a lot of shells over the last few months). Then, in March, something strange happened – GLGT started climbing the charts.

The run wasn’t particularly explosive during the first few weeks, but at the beginning of April, GLGT blasted out of the triple-zero levels. It briefly touched the $0.004 mark and although it later settled to more manageable levels, it managed to avoid serious drops.

At the moment, the ticker is climbing the charts again and it seems to be more determined than ever. Three consecutive green sessions brought GLGT from just $0.0033 to $0.0058 per share. What’s more, it registered a 52-week high of $0.0065 on Friday and finished the last session of the week with over $450 thousand in dollar volume. That’s a lot of money for a delinquent shell and the natural question is: “What’s going on?“.

There are no press releases, there’s no new filings and there aren’t even any paid promotions. Funnily enough, the cause for the current run is to be found on Nevada’s Secretary of State’s website.

If you go there and reach this page, you’ll see a list of all the changes and amendments to the articles of incorporation that GLGT have made over the years. When you scroll down to the bottom of the page, you’ll see a link that says “Return to Entity Details for “GLOBAL GENERAL TECHNOLOGIES, INC.”“. If you click on it, you will be forwarded to this page and as you can see for yourself, the company that is described on it is called “Turbine Aviation Inc.“. Apparently, this is enough of a reason for a lot of investors to think that GLGT and Turbine Aviation are about to enter into a merger agreement.

People know that if that is indeed the case, GLGT is probably in for a brighter future. It seems that Turbine Aviation is in the business of repairing and maintaining jet engines and the company appears to be doing well. Discussion boards are buzzing with activity and lots of investors expect to hear official news about the merger really soon. Not surprisingly, they are scrambling to buy GLGT shares while the ticker is still in the sub-penny levels. Indeed, if there is a deal in the making and if the two companies manage to close it, GLGT will most likely get a push because of Turbine Aviation’s solid operations. But are things really so simple?

Apparently, most people reckon that they are. They should, however, be aware of the fact that so far, the whole run is caused by nothing more than rumors and speculation. They should also bear in mind that a similar deal was brewing a couple of years ago. GLGT was about to be merged with a company called ITI Biotech, but, as you can see from this filing, the acquisition fell through.

This, of course, is the worst case scenario. Let’s assume for a moment that Turbine Aviation is indeed planning on becoming a public company through a merger with GLGT. Let’s also assume that the deal will be closed without a hitch. If the press releases are to be believed, this is exactly what Frozen Food Gift Group Inc (OTCMKTS:FROZ) managed to achieve when they completed the merger with APT Group a couple of months ago. Naturally enough, when the company announced the completion of the deal, FROZ surged in the right direction and hit a 52-week high of $0.03 on April 15. Currently, it’s standing at just $0.0033 which goes to show that nothing in the penny stock world is guaranteed.

Of course, FROZ‘s performance doesn’t necessarily mean that GLGT is about to suffer the same faith, but considering all the dangers before putting your money on the line is definitely a good call.