Global Security Agency, Inc. (PINK:GSAG) Up on Pump by Research Driven Investor
In the short session on December 24, Global Security Agency, Inc. (PINK:GSAG) closed up 40%, following a Friday close of another 38%. After this impressive percentile climb, the stock closed at $0.014.
The reason for the move was a pump campaign run by Research Driven Investor, a David Cohen entity – a promoter party who received $75 thousand to advertise GSAG stock. The first pump email landed on December 23 and touted the supposed opportunities before the company in light of changing school security regulations. I suppose it’s not hard to create hype around just about anything when you’re getting paid such a hefty sum of money, as the situation with GSAG is not a pretty one.
The company’s last report of financials is dated September 30 and the numbers in it paint a picture of a business that is everything but booming. Here is a quick recap of the figures:
- $85 thousand in cash
- $626 thousand in current liabilities
- $953 total revenue for Jan-Sep 2012
- $652 thousand total net loss for Jan-Sep 2012
In short, GSAG generated negligible revenue for the first three quarters of 2012 and is drowning in accumulating debt. Furthermore, throughout 2012 the company issued large numbers of shares as settlement of debt, further diluting its shareholders. A number of convertible notes are detailed in the above 10-Q report and the most recent development with those is the issuing of nearly 2 million shares to cover one such note. Investors who are looking at GSAG now may want to know that this particular noteholder got his shares in October at a conversion price of $0.005 per share, and they are now buying at a price about three times higher – hardly the priviligeded position to enter the stock that the pumpers speak of.
David Cohen previously ran other disastrous pumps, one example being an early December pump of Global Resource Energy, Inc. (PINK:GBEN). The company crashed hard after the last pump email and is currently more than 66% down from the pump highs.
Investors are advised to do their due diligence and be very careful with promoted stocks, as those often move on artificial hype created by pump campaigns and not on actual performance.
