Stock Digest Report Give Global Resource Energy Inc (PINK:GBEN) Another Shot

The email that we received just minutes ago about Global Resource Energy Inc (PINK:GBEN) is very interesting. We followed the previous promotions for GBEN and while they talked about hydrogen generators and LED street lighting, this time Stock Digest Report (SDR) have probably run out of optimistic promises. Either that, or they just couldn’t be bothered to think of something more interesting than a bunch of technical chart details, that nobody understands.

There could be a reason for this since, according to the disclaimer, the promotion that they are currently carrying out is free, so we can imagine that they decided not to put in too much effort. Still, free or not, we see some movements around GBEN and even now, just a couple of hours into the trading session they have gained a respectable 35% over yesterday’s closing price so it worth paying attention to what Stock Digest Report’s email says. Or is it?

Well for one, the newsletter encourages us to have a look at the six months chart for GBEN and, sure enough, we did. SDR claim that the chart shows how a lot of investors have made profits as big as 290%, but they don’t tell us how many more lost colossal amounts of money during the pumps. And there were quite a lot of promotions over the previous months, which is why GBEN‘s chart resembles a roller coaster. Having in mind today’s movement, we reckon that in the next couple of trading sessions, GBEN will gain some ground and after that it will crash back down just like they did the previous times.

The scenario might have been different in case GBEN and the promoters had anything real to show us, but it was all horrifying financial statements and bright promises. Still, a couple of months passed since the last pump, so we decided to see if anything has changed.

In terms of the reports, it’s the same old story. There has been no new financial statement and the one for the quarter ending on October 31, 2012 still reads that they have:

• cash: $0
• total assets: $1,415
• current liabilities: $247 thousand
• no revenue since inception
• quarterly net loss: $68 thousand

A lot of blood sweat and tears will need to be shed if the management want to turn things around and, speaking of management, GBEN recently announced that they have a new CEO… and CFO… and Treasurer… and Secretary… and Director. All these positions are now held by a single person called Roland Hutzler. There’s no doubt that Mr. Hutzler should be extremely good at multi-tasking, and he should also be ready to work under pressure since we’re quite sure that a lot of optimistic GBEN shareholders are waiting for him to finally turn things around. It’s unlikely, but he might just do it.

Until then, the pumpers will continue to tout GBEN‘s shares whenever they feel like it (more likely, whenever they are paid to do so) and while opportunities for a profit might appear every now and then, the risks are extremely high and you should be confident that you can afford the losses before jumping in on the hype. People who can’t end up extremely disappointed and, we reckon that there are a lot of burnt investors from the previous pumps who are ready to confirm this.