Global Equity International Inc (OTCBB:GEQU) witnessed a strong respite from its recent decline in last week. In last trading session, the GEQU gained 25% to close the trading session at $0.0400. The reversal came after the released Press Release stating that one of the company’s clients entered into a big agreement with the U.S. government.
The details
The announcement was successful in creating positive hype around Global Equity stock, but when the press release is studied thoroughly, it becomes evident that there are many reasons why the up move may not continue in coming trading sessions. The fact that GEQU stock managed to halt its slide seems surprising and more of a wonder in and of itself.
Don’t fall in the trap as miracles don’t last, as suggested by company’s latest financial report. The latest quarterly report stated that Global Equity cash reserves stood at just $734, current assets at $52,000 while current liabilities were no less than $3.9 million. For the reported quarter, revenue was $1.1 million and net income came at $373,000.
Share structure
Additionally, people who have performed due diligence on Global Equity knows that weak numbers are the very least of its grave problems. GEQU’s share structure is more dreadful compared to poor financials and inadequate resources. Suffice it to mention that 448 million shares have been released after November 2014. In July 2015, the company issued millions of shares priced in between $0.00045 and $0.0007.
The worst part is that there is no straight way to assess how much more discounted GEQU stock could make way into the open market. Probably, the recent decline was a result of dumping of company’s discounted shares in the open market. Investors should not rule out that possibility, and other red flags, before making any investment in Global Equity.
Global Equity International Inc (OTCBB:GEQU) gave the signal of the corrective phase ending with a solid rally as it closed at the end of the last trading session with huge gain of 25%. The volume of 8.6 million was not that higher than the daily average of 7.8 million but the price action was decisive enough. The stock is coming out of a long term base after a prolonged bear market, as evident from the chart attached. The breakout above $0.01 levels can clearly marked using only the log scale and that gives the impression of more upside t come in the next few weeks.
