Following a five-month hiatus, Great American Energy Inc (OTC:SRBL) finally resurfaced on the stock market last Thursday, Sep. 15.
Having just switched its name (from Southern Bella, Inc.), SRBL stock made its first market appearance since Apr. 15. This time, however, it opened and closed at $1.00, i.e four-times higher than the $0.25 value registered five months ago. Yesterday’s session made no difference. Being subject to a considerably lower investor interest, SRBL only managed to shift 150 shares, leaving its $1 value intact.
What happened in the meantime could be anyone’s guess. Yet, what is clear is that SRBL carried out a forward 80-to-1 stock split on Aug. 31. As a consequence, its A/S now amounts to 80 billion, while the O/S has yet to hit the 700 million mark. That is why SRBL supporters might be running a substantial risk of dilution.
The company’s latest 10-Q report covers the quarter ended Jun. 30, which is why the forward stock split is not to be found on it. Instead, what investors can see is:
- $8,519 in cash (and current assets);
- $27 thousand in current liabilities;
- quarterly revenue in excess of $37 thousand;
- net income of $5,264.
While SRBL appears to be able to generate revenues, this does not necessarily mean that it will easily attract investors’ attention. On the contrary, in the light of the recent forward stock split, penny stock traders will be twice as careful when deciding on buying SRBL shares because of the increased risk of dilution.
