Great American Energy, Inc. (OTC:SRBL) Rides a Three-Week Promotion
Although the last few days were shaky for Great American Energy, Inc. (OTC:SRBL), the pump effect seems to be lingering, sending the stock up another 15% over the last few days. It’s been a long pumping campaign that keeps SRBL with a healthy price around $1, and the emails have been coming regularly in the past three weeks, the latest one hitting inboxes as the market was preparing to open on Tuesday. 
We already covered the company’s ambitious plans to mine rare earth metals in Canada, but here is a quick recap of why we believe these plans are a long shot, due to limited resourced: 
- $5,904 cash
- $58,567 current liabilities
- Zero revenues
- $167,177 net loss
The email campaign was padded with a new press release detailing further plans for 2013 for the Bear Creek mining property. But even the new plan shows that what we may expect from SRBL is a very early research on the mining potential of the mineral claims, and any mining and production may be years ahead.
The latest email came in from Wall Street Report, with an unknown compensation. Otherwise, the total paid for SRBL mailing reached $129,000 for 32 new emails in the last month, a far-reaching campaign by all standards. The graph of SRBL shows volumes virtually non-existent before the pumps.
In the last week, the paying party for the mailings was Meson Consulting, LLC, spreading up to $40,000 for contracted pumpers such as Wall Street Report, Penny Stock Guru and Penny Stock VIP. Meson Consulting seems to be concerned only with SRBL, no other promotions on record. No matter how a pump starts, though, we must warn that it may end up ugly. With prices around $1, SRBL is priced quite high for a penny stock company, and we may expect it to be cut down to size quickly once investors move on to the next pick.
Previous stock selections show a marked decline when the emails end. X-Change Corp. (OTC:XCHC) moved up on high volumes when taken by Wall Street Report, but deflated on lower trading soon after.
With SRBL a long-time bet, we may expect to see a cooling in the weeks to come, so do your own estimation of acceptable risk and time frame before following the hype of promoters’ emails.
