Golden Edge Entertainment Inc. (OTCMKTS:GDEE) Climbs Further Up
tags: GDEE
Golden Edge Entertainment Inc. (OTCMKTS:GDEE) registered another impressive 36.88% jump yesterday – but how much longer can it keep this up?
As we have mentioned on multiple occasions in the past, GDEE‘s whole situation is more than a little bit suspicious.
First of all, we’re talking about a company that is perfectly fine with paying for its own pumps. This is a huge red flag in and of itself, but even if one looks past it, GDEE‘s particular set of circumstances appear suspicious, and the whole situation it only gets weirder as you dig deeper.
As usual, the most reliable place to research a suspicious pinksheets company is its OTC Markets filings page, and we wholeheartedly advise any investor eyeing GDEE to study its contents carefully – because once opened, said reports show a grim picture indeed.
- Total Assets – $7 thousand
- Total liabilities – $90 thousand
- No Revenues
- Net loss – $25 thousand
Suffice it to say that those do not look like the financials of a company that is really worth its market cap of nearly $38 MILLION.
No, what we’re seeing here looks like classic OTC Markets mediocrity – and experience teaches that the market has a tendency to redress such obvious discrepancies between market capitalization and actual worth before long.
The likelihood of a timely correction is further increased by the fact that a serious portion of GDEE‘s debt outstanding is in the form of toxic convertible notes that can be transformed into shares of GDEE common stock at either a fixed price of $0.4, or at a 40% discount to the current market price.
So while the launch of the company’s live streaming platform might be good news, it is up to investors to decide if such a turn of events is good enough to justify committing to such a risky stock.
As usual, we advise caution and diligence when dealing with volatile OTC Markets pinksheets penny stocks – and this goes double for those with a history of pumping activity. Thus with regard to GDEE – let the buyer beware.
