Golden Star Enterprises Ltd (OTCMKTS:GSPT) Shoots Up
Last year, Golden Star Enterprises Ltd (OTCMKTS:GSPT) acquired the license to what they thought was a brilliant idea. They bought the right to manufacture and sell a line of novelty devices called Vapor Spirits – gizmos that basically let you consume alcohol without the bothersome procedure of drinking it and saying “Cheers” every now and then. You put the booze in a special vaporizer and “smoke” it like a normal electronic cigarette. The management team even said that drinking like this gives you no hangover which, they hoped, would turn out to be a massive selling point.
Unfortunately, today’s society apparently isn’t as forward-thinking as the people behind GSPT thought. The general public preferred to continue consuming alcohol through more old-fashioned methods and GSPT only managed to log about $6,600 in revenues from the Vapor Spirits brand during Q1. The rest of the financial report isn’t particularly encouraging, either:
- cash: $1,123
- current assets: $52,825
- current liabilities: $265,347
- quarterly net loss: $20,252
In April, GSPT decided to sell the Vapor Spirits business to Wee-Cig International Corp (OTCMKTS:WCIG) and many people who had bought the stock because of the novelty devices were left with a bitter taste in their mouths. The alcohol vaporizers weren’t the only products in Golden Star’s portfolio, though. The company has also been selling drones for the last few months and during Q1, it managed to log a more respectable (though still modest) $17,400 in revenues from them.
A press release from yesterday suggests that the management team want to see this figure grow quite a bit in the future. GSPT announced that they have received a big shipment of drones which they intend to sell with the help of a massive internet marketing campaign.
Investors apparently reckon that thanks to this campaign, GSPT will become a serious player in the somewhat overcrowded drone industry. Yesterday, the stock experienced quite a lot of buying pressure which pushed it up to a close of $0.055 – 28% above the value at the end of Tuesday’s session.
So, people really believe that Jaclyn Cruz and Matt Kelly, GSPT‘s CEO and CFO, respectively, can help the company grow. And, of course, there’s nothing wrong with that. It should be noted, however, that the same people have been at the helm of other OTC companies and investors have trusted them in the past. The results weren’t pretty.
Ms. Cruz and Mr. Kelly headed Bravo Enterprises Ltd (OTCMKTS:OGNG) not that long ago and in August 2014, they tried to convince investors that they will be able to sell their water generators in certain parts of Africa which, coincidentally, was ravaged by the deadly Ebola virus back then. The SEC apparently thought that there’s something wrong with the press release and on November 20, the stock was suspended due to questions concerning the “accuracy and adequacy of publicly disseminated information, including information about the relationship between the company’s business prospects and the current Ebola crisis“. Right now, OGNG resides on the Grey Market tier and it’s sitting at $0.0001 per share.
