Global Links Corporation (OTCMKTS:GLCO) Rides the Marijuana Train
Global Links Corporation (OTCMKTS:GLCO) has been around for quite some time, but it’s safe to say that it’s been far from plain sailing for the shareholders. Back in 2005, the company was shook by a huge scandal when naked short sellers traded more than 27 times the number of outstanding shares in just a month.
The magnitude of the manipulation was so huge, that even Forbes took on the story. As you can see from this link, however, GLCO‘s CEO, Frank Dobrucki (who is still at the helm), was confident that he can weather the difficulties and said that the company is “not going to fall apart“.
Unfortunately, it didn’t exactly flourish either. In 2007, two years after the scandal, GLCO stopped filing their reports according to the SEC standards and the ticker was transferred over to the Pink tier on the OTC markets. Where, it must be said, it behaved quite erratically.
If you take a look at the historical performance from the last twelve months, you’ll see that in January 2013, it was hovering around $0.03. August saw GLCO hit its 52-week high of $0.16, but just five months later, it slipped below the $0.01 per share mark. All this while pumping out numerous press releases containing overly optimistic claims like the one from July 9 which said that they are “set to make US home ownership affordable“.
The latest financial statement reveals that GLCO haven’t done anything of the sort. In fact, it shows that the company is in a deep financial mess. Here’s a summary of the most important figures as of September 30:
- current assets: $200 in cash
- current liabilities: $3 million
- no revenue since inception
- net loss: $56 thousand
The financials above, coupled with the paid promotion from September and October 2013, have certainly contributed to the horrific stock performance. That said, over the last few days, we’ve seen some high volumes once again.
The intense trading was caused by a press release issued on January 29. Apparently, like so many other penny stocks (Extreme Biodiesel Inc (OTCMKTS:XTRM) and United Treatment Centers Inc (OTCMKTS:UTRM) are prime examples), GLCO are now changing their business plan and are looking at the opportunities presented by the scorching hot marijuana industry.
They acquired a private company called Hemp Life Today, LLC. The new subsidiary owns a website that goes by the same name through which they sell their own line of products and provide cannabis-related information to the general public.
The announcement was, as always, garnished with a lot of forward-looking statements and it seems that Penny Stock Crowd decided to take advantage of the hype and excitement by sending out a couple of no-compensation emails. Unfortunately, the effects on the price were less than impressive. In fact, the drop was so horrific that even the pumpers decided to take cover and, on January 30, they ceased touting.
Without them, GLCO looks in a much better shape. Two sessions of high volume and impressive gains brought the ticker from $0.0105 all the way to $0.038 and, with a new press release that hit the wire after yesterday’s close, it looks like we’re in for another exciting day. Will the upward trend continue in the long run though?
GLCO‘s management team seem mightily optimistic about the new business and they say that the website’s popularity is growing rapidly. A quick research reveals, however, that the internet portal was created less than a month ago and we reckon that it will need some time to get the general public fired up. In any case, we’ve seen numerous times that optimism alone isn’t enough to persuade the stock into showing any sort of consistent performance. The figures in the future financial statement is the only factor that could decide the ticker’s fate which is why treading carefully and estimating the risks is absolutely essential before making any investment decisions.
