Today’s focus is on a company whose stock, as described by an iHub poster, ‘went from 0.005 to over $1.00 and down to worthless’. The company in question is GeoBio Energy, Inc. (PINK:GBOE), while the occasion is a non-paid trade alert.
The alert in support of GBOE stock is expected to give it a major boost on the market. Is it possible, though? Let us take a quick look at the facts. Yesterday, GBOE stock gave the market session a miss. Not a single share changed hands. No clear explanation has been provided either. What happened on Wednesday, however, was a performance to remember.
Two days ago, GBOE closed the session making a huge jump in the value. Clocking in at a four-week high of $0.087 per share, GBOE stock more than doubled in value, registering a staggering 117% surge and shifting 7.4 thousand shares throughout the whole session. The latter ended up considerably lower than the daily average trading volume, currently estimated at 22 thousand.
Now, third parties have embarked on a free advertising campaign to raise awareness about the company, which by the way, has not filed any official press releases for quite a long time. Whether that move will produce any substantial effects, remains to be seen in the forthcoming session. Yet, investors will most probably not forget that non-paid undertakings rarely produce any earth-shattering results apart from a one-off momentary movement.
GBOE may not be among the most prolific PR providers, but the company has so far been doing its best to stay relevant, as seen from a financial perspective. On May 23, GBOE filed a full-on 10-Q report with the SEC. The document, which covers the quarter ended Mar. 31, 2011, showed the following basic figures:
- $36K in current, respectively total assets, 86% of which in cash;
- $3.3 million in current liabilities;
- zero revenues and a quarterly net loss in excess of $2 million.
As it seems, you don’t need to be a professor to evaluate the current financial health of GBOE. Unless the company comes up with some commercially viable projects, it will be unlikely to put its financial state in order.
