Great American Energy, Inc. (OTC:SRBL) Gathers Downward Momentum
Yesterday Great American Energy, Inc. (OTC:SRBL) continued its trip down the chart, picking up speed as it slipped, closing 20% down and stopping at $0.75 at the bell. With the heavy pumping that took place in March and with just a few faint attempts to promote the stock in early and mid-April, SRBL may be looking at some tough times.
The organized and extensive pumping that took place over March, with over 50 email touts sent out for SRBL, didn’t do the stock much good as SRBL ended the month below its pre-pump prices. The company has issued three press releases in April so far, all of them rather underwhelming in content. SRBL first announced the ‘scope’ of its Phase I exploration program. Two days ago the company informed investors that it had submitted a ‘permit application’ for its exploration program, which should give investors some idea how far along SRBL is regarding its Bear Creek project.
The financials of the company are not exactly stellar either. The latest available financial report of SRBL is a 10-K for the year ended December 2012 and contains the following numbers:
- $22 thousand in cash
- zero revenues for the last two years
- $413 thousand yearly net loss
Considering the company announced earlier that it will have started its exploration program by March and the development of the program has gone as far as the submission of an application for a permit in late April, it’s not too clear how far into the future the process may extend. With press releases as underwhelming as SRBL‘s and with the statement in the company’s 10-K that the its mineral property claims do not “currently have proven or probable reserves”, investing in SRBL may be best left to those who have a passion for highly speculative trading with huge risks involved.
With SRBL losing a fifth of its market cap in a single day and still being valued at $66 million, despite its disappointing financials and uncertain future, traders are advised to be extra careful with this one.
