The list of services that Global Security Agency Inc. (PINK:GSAG
, GSAG message board
) offer is as big as the list of emails that have been promoting them over the last month or so. Whether you want to initiate a private investigation to see if your spouse is cheating on you, or you want to protect yourself from ill-thinking villains with automatic weapons, or you would like to handle a hostage situation, GSAG are always on hand. Is that why the pumpers can't get enough of them?
We doubt it. Maybe, they would like to clean up the mess they left after the previous promotions, but most likely it's purely the compensation that motivates them. Anyway, let's have a quick look at the previous promos and their outcome: the one back in March 2012 saw them reach some high prices, but since then, they have been steadily going down. The last one took place around Christmas and although it managed to breathe some life into the stock, for a while, it quickly went back to the sub-penny field. Some rather irrelevant press-releases are trying to bring it back up and the people around PennyStockScholar are also on hand to help.
We wouldn't worry so much about the fact that GSAG is promoted if they had something going for them, but unfortunately, they don't. If you take the time to read through their reports, you will see that every time they file a new one, it looks worse than the one before it. GSAG do seem to be making some revenues, however, they are decreasing with every quarter, while the losses are mounting. We took the time to summarize the most important figures for Q3 of 2012 and compare them to Q3 of 2011:
- cash 2012: $85 thousand
- cash 2011: $27 thousand
- current assets 2012: $676 thousand
- current assets 2011: $904 thousand
- current liabilities 2012: $626 thousand
- current liabilities 2011: $457 thousand
- revenue 2012: $307
- revenue 2011: $385 thousand
- net loss 2012: $115 thousand
- net income 2011: $50 thousand
The conclusion that can be drawn from these financials is that we have a company that is on a downward slope and it will be extremely difficult for them to climb back on the right track. How difficult? Well, in their latest financial report they say that in order to execute their business plan, for the next 12 months they will need a total of around $5 million.
Unlike other companies, that keep their rose-tinted glasses on all the time (even when it's shady), GSAG are aware of the dire financial straits they are in right now. For example, in their latest yearly report covering the fiscal 2011, they say that they have a total of four full-time employees. The 10-Q from September states that they needed to reduce the workforce, which begs the question: "Is there anybody working at the company at all?".
It will remain unanswered, at least for now, but there is another, more important question: "Why would someone want to pump the shares of a company that is, by the looks of things, down for the count?". Well, you can feel free to classify this as guesswork, but we would just like to mention that during the summer of 2012 around 8.8 million shares were issued in exchange for services, and they were all valued at a fraction of GSAG's current price. We think someone is going to sell a lot of them really soon.
If that happens, GASG's price will drop dramatically, which coincidentally is exactly what usually happens to companies promoted by PennyStockScholar. A recent example of this trend is DRAGON POLYMERS INC (PINK:DRAG) who were fell victims to the email advertisement back in December. Once the promotion stopped, they lost a whopping 61% in a single trading session, and when compared, the current price is more about 80% lower than the one before the pump.