Strategic Global Investments, Inc. (OTCMKTS:STBV) Rises from the Land of the Double Zeros
2013 was an eventful year for Strategic Global Investments, Inc. (OTCMKTS:STBV). They issued a number of press releases and if the announcements are to be believed, their business plan has been massively diversified over the last twelve months.
They talked about anything from real estate sales, to VoIP technology, to special video streaming websites that were supposed to bring in masses of revenues through advertising and subscription services. At one point, they even announced a contract with Growlife Inc (OTCBB:PHOT) according to which they were supposed to provide the marijuana company with marketing services.
STBV do say in their third quarter report, however, that they “are having most success in producing information videos for customers who are trying to deliver information to a specific audience“. We’re not sure if the word “success” is used in its proper meaning in this sentence.
The same document also contains STBV‘s quarterly statement for the period ended September 30, 2013 and it boasts the following figures:
- current assets: $13,156 in cash
- current liabilities: $379 thousand
- quarterly revenue: $476
- quarterly net loss: $316 thousand
- accumulated deficit: $1.9 million
It’s pretty clear that none of STBV‘s endeavors paid off and, somewhat predictably, their stock didn’t perform all that well either. The lack of solid operations wasn’t the only thing pushing the ticker down from the $0.12 levels experienced during January 2013 to its double-zero downfall in December.
The shareholders also had to deal with a lot of dilution. A quick comparison between the report for the third quarter of 2013 and the one for the corresponding period of 2012 reveals that in just twelve months, the company issued a total of 168 million new shares. Currently, the total number of outstanding shares is 207 million and, with 1 billion in authorized capital, further issuance might not be that much of a surprise.
What’s more, the ticker underwent several promotional campaigns in 2013 and they didn’t really help all that much.
All in all, there are plenty of things that could scare investors away and yet, yesterday, traders seemed absolutely crazy about STBV. More than 145 million shares changed hands in just six and a half hours of trading. STBV opened the session at $0.0025 and showed consistent movement in the right direction throughout the day. It finished the session above the $0.01 per share mark for the first time since September and racked up a dollar volume of no less than $856 thousand.
The problem is, there is no immediately obvious reason for the sudden spike in volume and price. The latest press release is dated January 15 and although (like the majority of STBV‘s announcements) it contains some extremely optimistic revenue projections, we doubt that it’s still having such a massive effect on the stock performance.
Surprisingly enough, there are no fresh pumps either. The latest email alert hit our inbox on November 6 and it was sent by Penny Stock Crowd who are now busy touting Global Links Corporation (OTCMKTS:GLCO). By the looks of things, they aren’t doing a terribly good job.
All in all, STBV‘s run from yesterday remains a mystery for now. The ticker could be propelled by the fact that PHOT is also running in the right direction. It might also be some sort of under-the-radar stock promotion pushing the price. One thing is for sure – at the moment, STBV doesn’t have the necessary fundamentals to support the market cap which currently stands at just under $2.4 million. That’s why doing a lot of due diligence and weighing the risks carefully is absolutely essential.
