When CEO John Arnold addressed all shareholders of Geo Finance Corp. (PINK:GEFI) in writing last September, he declared a change of emphasis in company policy. Instead of incurring losses with alternative energy projects that never materialized, GEFI management had decided on taking a more pragmatic approach and venture into oil and gas production.Since then, GEFI managers have behaved as if they have gone into exile with no updates coming up for months on end. The long silence pretty much explains the mediocre investor reaction to last week’s promotional wave that flooded the Internet. The acquisition plans announced last Friday failed to exert any significant influence on the price of GEFI stock either. While it indeed increased in value, the surge was fairly symbolic as it barely reached the 3% mark. The only movement not to be considered a run-of-the-mill performance was the turnover – 150 thousand shares changed hands on Feb. 25, as compared to some 26 thousand the day before.
Given that GEFI seems to be far from going stellar, the hiring of an experienced enterprise called Position Media Group /PMG/ to improve GEFI’s investor relations appears to be justified. When creating investor awareness for the company, however, PMG will have to find a way to transform GEFI’s weaknesses into advantages. With $589 of cash and an annual net loss of $80 thousand, PMG’s mission will most likely turn into quite a challenging one. [BANNER]
On the other hand, as stated in Arnold’s September shareholder address, “the Company believes that there is a real opportunity to assemble significant oil and gas production at rock-bottom prices ….. for long-term profitability.” In case its new and would-be acquisitions really turn out to contain large deposits of oil, then all that glitters will be gold, at least for GEFI and its stockholders.
Before such a miracle happens, a more practical, purpose-driven management is required. Only then will regular investors be more inclined to pool their money in GEFI stock.
