Nelly Shishkova

Golfgear International, Inc. (PINK:GEAR) Crashed Down at Once

by Nelly Shishkova May 23, 2012
After a 63.79% gain on Monday, Golfgear International, Inc. (PINK:GEAR) crashed down at once. Yesterday, the stock lost GEAR_chart.png26.32% and its traded volume reached approximately 15 million shares. Though, the reason for the loss is not found yet.

During the last days, the company has been releasing positive news on its business, which pumped up its stock price. The latest dates from yesterday when Golfgear announced that they had set all time traded volume and the company's management was supporting their shareholders with additional share reductions.

The news sounded good enough to support GEAR stock price, though the climb was broken instead. In any case, what is more interesting here turns out to be the fact that along with the optimistic announcements GEAR has been promoted since last week.

Promotions started on May 18 and they continued until yesterday, when the compensation for the alerts totaled $27,500. Nevertheless, despite the campaign, GEAR is falling down and it's interesting if the stock will get the climb again.

GEAR_logo.gifGolfGear International, Inc. designs, develops and markets innovative premium golf clubs intended to improve the quality and performance of a golfer's game. As of March 31, 2012 the company's total assets were higher than its liabilities, though the net loss increased. Besides, the long-term liabilities of GEAR were not covered. As a result of all the losses incurred, the future operation of Golfgear has been placed under a going concern.

The management states that the ability of GEAR to continue operation is dependent upon obtaining financing adequate to fulfill its exploration activities, development of its properties and achieving a level of revenues adequate to support the company's cost structure. Otherwise, there is no assurance that GEAR will be able to implement its business plan.

Comments 5

1. Guest
May 23, 2012, 02:01PM


2. Guest
May 23, 2012, 02:00PM

Quotes Who am I? I am a wise and loyal investor who is optimistic of a company that shows real promise. In addition an experienced entrepreneur that knows financing is a necessary component that exist in all business models.

What business doesn't need additional finances to strive? If you read their articles you would know that if they have proven reserves of "REAL GOLD" then acquiring financing is an easy task.

Go back to school.

3. Guest
May 23, 2012, 02:00PM

Quotes I hope investors and interested parties see through this thick cloud of fecal mess and see that GEAR International is in fact a wonderful investment. One things for sure, no operating gold mining company has less than $500 million market cap in the OTC. Once the people take notice this gem will prove lucrative to investors.

Your article mixes technical observations with inaccurate business information which include fearful pessimistic language as if you were involved with the company yourself. Thus this article has no back-bone and only intimidates the inexperienced. Why don't you encourage investors to do their own research? I guess anyone can be seen as an expert with a laptop and a few pieces of information.

4. Guest
May 23, 2012, 01:59PM

Quotes You mentioned "GEAR is falling down and it's interesting if the stock will get the climb again." - While it is true that the stock climb drastically in one day after promotion it doesn't put in to question will it climb up again. Those new investors whose eyes see a quick enter and exit stock did exactly that. While long term investors didn't budge nor flinch with a 60%+ gain day nor a drop to the strike price prior to the promotional uproar.

The correlation between business activity and stock performance are in sync when investors are well informed by experts and not pseudo-experts who cannot effectively define a company's business model.

Your attempt to use strong adjectives such as "concern" may scare the lazy-to do research investors, but those whom look for a trustworthy stock will understand GEAR is a business first stock second. With that said, a successful business means a worthwhile investment. Come-on "expert" haven't you learned anything from Warren Buffet.

5. Guest
May 23, 2012, 01:57PM

Quotes I question the validity of your source of information. Primarily GEAR International is no longer recognized as "Golf Gear". Also it hasn't sold Golf equipment or any sporting goods since its acquisition and change of its business model approximately 2 years ago. In addition, investors who have jumped then have already made 2000%+ ROI since.

I also question if you spoke with "management" because if you did you would be clear that they are an operating Gold Mining Company not a premium golf club maker.

One things for certain is that this article seems "smear campaign-ish"
Perhaps your just doing your job scanning the market for interesting market activities to create a juicy article based off misinformation while being half asleep, rushing work to meet a deadline leaving room for tremendous ERROR.

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