Anastas Gegov

Golden Star Enterprises Ltd (OTCMKTS:GSPT) Gets Pumped

by Anastas Gegov April 8, 2015

Golden Star Enterprises Ltd (OTCMKTS:GSPT, GSPT message board) has rarely seen movement for quite some time now and it seems that it isn't able to attract a lot of investor attention. The ticker closes most sessions with zero percentile movement and daily dollar volumes rarely exceed $1000.

On April 6 the company announced that they have acquired 100% of North American Drones Enterprise Inc. GSPT issued 38 million restricted common shares of the company stock in order to make a deal, which is not surprising, considering the dire financial state in which the company is according to their annual report for 2014.

 

  • cash: $1,428
  • current assets: $6,264
  • current liabilities: $214,593
  • annual revenues: $47,534
  • annual net loss: $212,801

 

Certainly doesn't look like something that you would like to find in the filings of a company with a market cap of more than $5 million. We are in fact wondering on how GSPT plans to continue its operations, especially due to the fact that the management doesn't seem to do much as is evident by the lack of progress or any press releases concerning developments.

 

Since the beginning of the year we have seen a single PR and strangely enough it also came with a paid promotional campaign. The pump began after the session ended this Monday and we also received some emails yesterday. The compensation for the promoters during the first day of the campaign was $11.5 thousand, while the touters from yesterday received $3 thousand for their efforts.

 

And while the stock has been moving on its own lately and couldn't attract a lot of investor attention it appears that the pump and the press release have managed to spark some curiosity in the investor community. As GSPT moved 11.67% up and closed at $0.1005 we saw a total of 1.27 million shares change their hands and generate $137 thousand in daily dollar volume, the biggest since the beginning of the year.

 

It is still uncertain how things will play out from here on, but promoted stocks get corrected pretty fast after the pump is over. In any case, it is always imperative that you do your due diligence and weigh out the risks before putting any money on the line.

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