Borislav Tonev

Global Earth Energy Inc (OTCMKTS:GLER) Gets Back Up To Double Zero Territory

by Borislav Tonev September 9, 2013
5GLER.pngBack on February 14 Global Earth Energy Inc (OTCMKTS:GLER, GLER message board) announced their new and extensive business strategy according to which they were going to acquire royalty interest in oil and gas leases throughout the United States. In the press release they said that they are going to give us some more details around the new plan "in the coming weeks". Now, more than five months later, we've yet to hear about any acquisitions of oil and gas leases.

Back then, GLER hovered around $0.003 per share and the news was supposed to give the price a nudge in the right direction. Unfortunately, the pumpers interfered and instead of rising, the ticker took a tumble losing half of its value in less than ten days. Now it's on the move again and after a couple of green sessions is stands at $0.001.

What's causing the run? Well, it would appear that it's a new business plan once again. The oil and gas efforts are abandoned now and it's the news of a partnership with an entity called Hawk Manufacturing, Inc that's causing all the stir. The press release came out on August 28 and it triggered some increased interest in the ticker that culminated in the 353 million shares that changed hands during Friday's session. Unlike the run made back in February, there seems to be no traceable paid promotions running at the moment, but does that mean that GLER will manage to remain steady under higher value?

Well, let's say that we have our doubts. The colossal amount of issued and outstanding shares means that right now, the market cap of the company is estimated to be around $429 thousand. That might not seem like much, but when you check out their latest financial statement covering the three months ending May 31, you'll see that it is quite a lot for a company that has:

  • NO assets
  • current liabilities: $6 million
  • NO revenue since inception
  • quarterly net loss: $405 thousand
  • accumulated deficit: $45 million

With these figures in mind, we're struggling to see how the new partnership will give Hawk Manufacturing a "better access to capital" and we're not even sure what benefits could GLER yield from the deal since a quick check reveals that Hawk's website was created a little over nine months ago, which could suggest that the company is still relatively young with a long road ahead of them.

Of course, we should point out that it might be only the website that was set up in November 2012 and there is the possibility that Hawk is an established enterprise with a steady stream of revenues, but even if that is indeed the case, we've seen so many people being misled by GLER's bright projections about the future, that we still remain dubious.

4GLER_logo.pngIf you check out one of our previous articles, for example, you'll see that back on April 30, they announced that they are about to acquire an "Income-Producing Asset" in the form of an apartment complex in Washington. As you can see from the latest financial statement, the deal has apparently been called off and there isn't even as much as a mention in the 10-Q about any sort of acquisition of any sort of assets.

Will this time be different and will the new partnership finally bring some much-needed money to the next balance sheet? That might just happen, but you would agree that with all of the above in mind, the chances of the whole thing going South are also quite substantial. Make sure you have this in mind while considering your options. Unless, of course, you want to end up losing money just like the people who put too much faith in Grillit Inc (OTCMKTS:GRLT) and Petrosonic Energy Inc (OTCMKTS:PSON) did.

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