Great American Energy, Inc. (OTC:SRBL) Dips, Pump Goes On

On Friday Great American Energy, Inc. (OTC:SRBL) failed to sustain its pumped levels and dropped 8% to a close of precisely $1.00. The promotional campaign for the company shows no signs of letting up, with two more emails dispatched over the weekend.

The pump for SRBL started on February 18 and it was the factor that kickstarted the stock into active trading. The stock was flatlining at zero volumes prior to the paid promotions. SRBL is a company engaged in the mining business, or rather one that intends to be engaged in this line of work, as so far it has generated no revenues and is in the exploration stage. The latest financial report from SRBL dated September 2012 contains the following numbers:

• $5.9 thousand in cash
• $58 thousand in current liabilities
• zero revenues
• $355 thousand in net loss for Jan-Sep 2012

Last week the company announced its exploration plan for the current year, involving a property in Canada. SRBL is still at the information collection stage of its operations, planning to run Phase I exploration of the property, meaning any revenues are still quite a log way away. The company came up with two filings in the current year, detailing the issuing of units totaling 465 thousand common shares accompanied by warrants for the purchase of another 465 thousand shares, against cash. Over 2012 SRBL has issued another 833 thousand such units to the same company. Where all the cash proceeds from the 2012 issues went is not entirely clear.

The weekend pumps for SRBL call traders’ patriotism into question, making absurd claims that the future of some of the biggest U.S. military contractors depends on the development of SRBL‘s claims. Surfs Up Stocks have a pretty large disclaimer under the pump email that doesn’t disclose the exact sum they expect to receive but instead states that they are compensated between $1 and $100 thousand for their promotions.

Previously the same promoters pumped iMing Corp. (PINK:IMNG), touting it twice within 30 days, even after it crashed the first time. Currently IMNG is trading about 70% down from the spike of the two rounds of pumping managed to reach.

Traders are advised to do their own due diligence and never trade solely on paid recommendations and promotional emails that end up in their inbox.