More Failed Pumps for Great American Energy, Inc. (OTCBB:SRBL)
Yesterday was another pump day for Great American Energy, Inc. (OTCBB:SRBL). Predictably, the pumps fell through and the stock closed the session 11% down.
The last round of touts consisted of emailed promotional materials, with the distributing parties disclosing compensation of$10 thousand, while the original material’s disclaimer stated that Meson Consulting Ltd. budgeted $104 thousand for disseminating the promotion. The meat of the new touts is the wild speculation that a major car maker may take over SRBL because the company is working on lithium technologies. Why huge names like Toyota, Panasonic or Nissan would be interested in SRBL in particular is never explained. Promoters obviously think that the increasing demand in the sector means an automatic increase of the profitability and worth of SRBL.
The company’s filings contain very little that could assure investors a big corporation would suddenly become interested in it. Here is a brief rundown of some financial numbers taken from SRBL‘s latest report – a 10-K for fiscal 2012:
- $22 thousand in cash
- $23 thousand in current liabilities
- ZERO revenues for 2011 and 2012
- $413 thousand in yearly net loss
Those numbers are certain to make Toyota scramble head over heels to take over SRBL, no doubt, especially considering SRBL didn’t trade before the extensive pump campaign for the stock started on February 18. The pumps kicked the stock into gear for a brief while but SRBL has gone down nearly 50% from the onset of the pumps.
The promoters at Stock Hunter who participated in yesterday’s round of touts for SRBL previously brought their subscribers some awful picks in the past. One recent example is an April 3 pump on Face Up Entertainment Group, Inc. (OTCMKTS:FUEG). Stock Hunter pocketed $35 thousand in compensation for this one, and FUEG was hammered into suspension by the SEC on the very next day, due to questions concerning the “adequacy and accuracy of publicly available information”. The company’s quotation is still missing from their OTCMarkets page as of the time of writing and it still bears the skull and crossbones ‘Buyer Beware’ stamp. Truly, a great pick!
Investors are advised to do their own research and never invest in any stock simply because they received a colorful paid email advertisement in their inbox.
