As GVRS stock has neither fundamental base whatsoever, nor any running precious metals project, Friday’s explosive volume appears to be a mystery. The stock has an average volume of 23,000 shares, but the over 637,000 shares traded on Friday made the share price double to $0.6. Without any news or disclosed promotions, GVRS has not even been noticed by shorters as a potential short-term gainer these days.
Most likely a promotional disclosure will follow in the coming days, as such a volume spike happens usually on a large number of trading alerts being sent out, and respectively the trading activity for the shares will depend on more alerts to be sent to traders. Thus, GVRS risks are not only related to its enormous volatility, but also to its lack of liquidity.
GVRS website remains silent since the end of May. According to the latest financial report, GVRS has made some failed attempts to acquire certain mining projects, but that led so far only to a lawsuit related to one of the option agreements. Consequently, over six years after its inception, GVRS had at the end of this May no employees, no revenues, around $2,000 in cash as the only asset and $380,000 in liabilities.
At the end of July, the company’s Secretary, Treasurer/Chief Financial Officer and a director D. Bruce Horton resigned and his positions were overtaken by the current CEO, Marcus Johnson, who now obviously manages the whole business. Mr. Johnson is an architect without any mentioned experience in the mining of precious metals, but with “considerable experience in the financing, structure and development of public companies in the resource, energy, technology and biotechnology sectors”.
It is clear that even if Mr. Johnson finally finds the right property to acquire, he will urgently need cash. After the 1-for-4 reverse stock split that became effective in June, GVRS has now 26.19 million shares outstanding and authorized capital of 50 million shares of common stock.
