After recording strong gains of more than 19% on Thursday, the stock price of Global Equity International Inc (OTCBB:GEQU) declined 2.33% on Friday and closed the week at $0.0420. It was very much expected as the overall performance of company is adversely impacted by a host of factors.
The impact of pump
The paid promotional pumps need to end at a point, which remains unknown to investors. Some promotional campaigns don’t manage to generate any interest while others backfire and prompt the ticker to decline. However, there are some touts that tend to push the targeted stock up for anywhere from few minutes to a month or more. Obviously, there is profit to be made if the pump works, but is it worth the risk?
Before making any such investments it is wise for the investors to perform due diligence on the company so that it can result in a profitable outcome. If any due diligence is done on Global Equity International, it evidently leads to the fact that the only factor that is keeping the stock price to move up is the paid promotional campaign.
The latest quarterly report reveals that Global Equity International had meager cash of $734, not even in thousands. Its current assets came at $52,000 while current liabilities stood at $3.9 million. The net income in reported quarter was $373,000 and revenue came at $1.1million. Add the fact that almost 450 million out if the total 482 million outstanding shares, as of August 12, have been released after November 2014.
Also, it should be noted that in the month of July alone, Global Equity International has issued millions of shares priced between $0.00045 per share and $0.0007 per share. This suggests that the stock may witness a sharp crash at any time in the coming weeks.
Global Equity International Inc (OTCBB:GEQU) experienced a highly volatile session in the last trading session of the week though it ended the day with a comparatively moderate loss of 2.33% only. The volume of 12.3 million was higher than the daily average of 7.7 million but it was not higher than the previous few sessions, reflecting the absence of any severe selling pressure. The price action indicates a bout of profit booking at the higher levels but it also found buyers at the lower levels as seen from the long lower shadow of the daily candle.