Green Technology Solutions Inc (OTCMKTS:GTSO) Inflated Again
If they see a stock that has dropped from a 52-week high of $11 per share all the way to a bottom of just $0.24, most investors will probably be a bit apprehensive about jumping in. Unless the stock in question is called Green Technology Solutions Inc (OTCMKTS:GTSO). At least that’s what the last few sessions tell us.
The ticker has indeed gone through a truly petrifying drop, but people seem to be getting back to it at the moment. The last red session was registered on June 12 and since then, GTSO has managed to add a total of 109%. Yesterday, it went up by about 17% and it finished the day just shy of the $0.54 per share mark. Investors also racked up a dollar volume of about $203 thousand which goes to show that they’re definitely interested. Time to find out why.
Well, a paid promotion for GTSO started on Tuesday and it still appears to be active. Orbit Stocks as well as a few other promotional outfits received a total of $7 thousand and in exchange, they sent out some emails saying that the ticker “looks like another monster”. The alerts through the emails have now stopped, but there are people on the message boards who have also received some money to flood the forums with posts that won’t be particularly useful if you’re contemplating a potential investment.
The pumpers shouldn’t receive all the credit, though. On Tuesday, GTSO‘s management team came up with a press release and it too helped the ticker move further up. According to it, the company will be trying to expand its presence in the marijuana industry with the acquisition of Elevated Industries – one of GTSO‘s joint venture partners. Wallace Browne, the company CEO, said that he and his colleagues are interested in exploring the market for cannabis edibles and he said that acquiring Elevated would be a good start. It all sounds great… until you open the latest 10-Q.
In it, the same people who are now saying that acquiring Elevated Industries is a massive step forward wrote in the report that Elevated is “showing no signs of future revenue currently”. Then there’s GTSO‘s own financial statement. Here’s what it looked like at the end of March:
- current assets: $1,352
- current liabilities: $950,377
- NO revenue
- quarterly net loss: $238,475
Believing that an acquisition of a successful company can be completed with the financials above requires a lot of wishful thinking. And it’s not like the people behind GTSO have a spotless track record of delivering on all of their promises.
As we mentioned in our previous articles, in April 2014, the management team proudly announced that they have recovered about 1.3 tons of copper, 5.5 kilograms of silver, and 0.5 kilograms of gold from a sample of electronic waste. These findings are not reflected in the company’s financial reports.
If GTSO fails to deliver on its promises once again, the stock will take another beating. Even if things turn out to be better this time, the ticker might still be under threat. As we also mentioned several months ago, there were more than $600 thousand worth of notes that are convertible into stock at a fixed rate of either $0.01 or $0.02 per share. Between January 1 and April 11, $10,920 worth of debt was turned into 1,092,000 shares of common stock. We probably don’t need to tell you that a lot more shares might see the light of day at $0.01 apiece in the very near future.
