The Constant Pumping of Great American Energy Inc (OTCBB:SRBL)
We last covered Great American Energy Inc (OTCBB:SRBL) when they were having a bad time and were under the $0.40 mark. The cause of that were the pump emails that paid promoters were sending out filled with information that couldn’t be backed up.
Now they are experiencing an uprise due to the seemingly optimistic press releases SRBL are making thus aiding the promotional effort. In yesterday’s trade session they had another jump of 14$% and climbed to $0.68. In fact, the last four trading sessions for SRBL went extremely well as they didn’t register a day with an uprise below 12%.
The pumpers are getting oblivious in their effort to promote the stock and they are even comparing SRBL to Exxon Mobil Corporation (NYSE:XOM), which is a claim that isn’t really backed up by the last quarterly report that the company filed. For those of you who havn’t followed closely our articles about SRBL we will take a quick look at their financial state as seen in the quarterly report for the period ended March 31.
cash: $113 thousand
current liabilities: $23 thousand
revenue since inception: $0
net loss: $143
We do understand that they are an exploration stage, but becoming the next Exxon would be a possibility for the company after 100 years give or take. This would be possible if they do prove to be the business orientated company that they are claiming to be and not the latest scheme that operates only to trade stock for insider profit.
The idea to compare a company in SRBL‘s financial state to a company with a $44 billion net income for the year 2012 seems ridiculous. It’s far too obvious that the pumpers who have been paid to promote SRBL‘s stock are getting really creative with the task of creating a dreamlike vision for investors to see. This isn’t surprising when you see that SRBL have paid more than $120 thousand to all sorts of promoters just this month.
The more disturbing part is when you see that their press releases show only one thing. The company seems to have absolutely no news apart from the advisory agreements with GeoXplor Corp. They have been talking about the qualified advisors that they saw in the face of Mr. John O. Rud and Mr. Clive Ashworth for about a month and this is the only news coming from SRBL.
In the most recent of their press releases they stated that Mr. Rud has been appointed as an advisor in their Advisory Board. In exchange for his professional advice the company has issued 100 thousand restricted shares to his name. We don’t know much about Mr. Rud except that he is a veteran of the mining industry and he has specialized in mining for lithium for quite a lot of time.
What we do know is that he and Mr. Ashworth were the founders of GeoXplor Corp. and in one of our previous articles about SRBL we warned you about Mr. Ashworth’s past. We brought to your attention that Mr. Ashworth was banned from the British Columbia Securities Commission (BCSC) for allegedly participating in a scam which ended up with criminal convictions of two paid stock promoters.
We are not saying Mr. Rud has had such history, but as we all know “you become what your friends are” and judging by the fact that he decided to make a company with Mr. Ashworth we think that they have a close relationship.
Given all that we can conclude that SRBL is a risky investment choice from which only some of the more experienced traders can profit with short term investments. No one can tell what can happen in the long run and if they are going to do any actual business so be sure to do your due diligence and weigh out the risks for yourself.
