Global Holdings Inc (OTCMKTS:GBHD) Marches into the Unknown
A little over a year ago, a person who uses a nickname wrote an article about Global Holdings Inc (OTCMKTS:GBHD), and he urged his readers to “go big” and to “hold for dollars”. Some people probably listened to him and they might be feeling a bit sore by now because exiting the sub-dollar levels appears to be a long way away. In fact, when the article in question came out, GBHD was hovering around the $0.30 per share mark, but just eight months later, it bottomed out at $0.05.
An appalling performance, no doubt, but is anyone really surprised?
Well, we’ve mentioned numerous times on these pages that taking stock advice from random people around the internet probably isn’t your best bet. It must be said, however, that back in July 2014, there were one or two things to suggest that the stock is about to go up. There still are.
The latest financial report, for example, looks like this:
- cash: $11.2 million
- current assets: $14.7 million
- NO liabilities
- quarterly revenues: $21.8 million
- quarterly net profit: $3.6 million
So, according to the financial report, GBHD is a profitable company that’s in a pretty good shape by Pennyland standards. Why, then, have people been reluctant to trust their money with it?
As always, it’s difficult to say for sure, but we should probably point out that GBHD is currently headed by a certain Merle Ferguson and her previous experience with penny stocks is not exactly encouraging. Ms. Ferguson was once at the helm of an OTC-listed company called World Homes Inc and while she was there, she issued a few press releases that pushed the stock in the right direction. The SEC, however, thought that the press releases weren’t completely in line with the truth and Ms. Ferguson was eventually ordered to pay a $120 thousand civil penalty.
Ms. Ferguson became the CEO of GBHD in January 2014 when she replaced Susan Donohue (another person involved in the World Homes scandal), but by the looks of things, her stint at the helm might be coming to an end. GBHD recently announced that a multi-national entity called Element Global Inc has taken over the company. According to the press releases, GBHD (which is expected to have a new name and ticker symbol soon) will shift its focus towards the mining industry in the very near future.
There is some reaction to the news. The last few sessions in particular have been pretty exciting. At the beginning of the week, GBHD was sitting at just $0.10 per share, but, after an impressive 56% jump yesterday, it’s now hovering around $0.23. Sounds good, but, at $147 thousand, the volume is not that impressive and that may seem somewhat strange considering the fact that a few days ago, GBHD announced that Element Global has more than 3.7 billion euros in assets.
The lack of solid volumes is not that strange, though. In fact, details around the deal are so scarce, that any investment should be carefully thought through.
GBHD say, for example, that Element Global’s books have been audited, but they’re not willing to give us any financial statements. They say that the company is going to start reporting with the SEC soon, but they’ve been saying this for a long time and they’re still not too keen on giving us a deadline. They also say that some “senior C-Suite executives” will be coming on board, but they’re not giving us the names. And as we established above, the name of the CEO could have quite an impact on the stock performance.
