Rumors circulate on the market that Global Agri-Med Technologies, Inc. (PINK:GAGO) are about to close an acquisition of a promising natural gas property in Kentucky, and some people are recommending the stock already. As suggested in the floating newsletters, the company supposedly confirmed they will soon raise $1 million in a non-brokered equity offering and should be starting some drilling by the end of 2010.
Two weeks ago Global said they were in talks to acquire a major gas property in Kentucky. Since there is no affirmation of this actually coming to life, people keep guessing and penny stock newsletters are having it their way.
GAGO was recommended as a possible breakout by Penny Stock Prophet. The reasons behind this pick were low float, funding about to come and a possible new acquisition in Kentucky. The funding is a mystery as there was no official confirmation from the company. [BANNER]
A newsletter from Penny Stock Prophet read: “Last night, the company just announced that they are proceeding on a non-brokered private placement of up to $1 Million Dollars to commence drilling on their eleven proven oil properties before the end of 2010!“
Global controls 11 properties through its wholly owned subsidiary Quad Energy. Since GAGO acquired Quad only in August this year, their fundamental situation is unclear, adding to the fact that this Pink Sheets company was not reporting with the SEC to begin with.
After the recommendation, stock returned nearly 10% over the first couple hours into trading, but since this company has so little information on them, this is a very risky play. The price is very likely to roll down on a short notice if no news will come out.
