After a 63.79% gain on Monday, Golfgear International, Inc. (PINK:GEAR)
crashed down at once. Yesterday, the stock lost
26.32% 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.
GolfGear 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.