How Long Can Golden Edge Entertainment Inc. (OTCMKTS:GDEE) Keep Climbing?

tags: GDEE

Golden Edge Entertainment Inc. (OTCMKTS:GDEE) has certainly come a long way in the last three weeks, climbing from a mere $0.4 per share to more than $2.55 with just one pull-back. But how much longer can it keep this up?

You see, that’s the odd thing – once you start searching for the answer to that question, it quickly becomes clear that that’s entirely the wrong question to ask. A more appropriate one would probably be “how can this stock possibly still be up”?

Let’s take it from the top. GDEE is a company whose market cap is currently as high as $45 MILLION. At the very same time, the ticker’s latest ascent was kick-started by a paid pump campaign sponsored by the company itself. Oh, and let’s not forget that last time it filed, the company looked like it had next to nothing to its name:

  • Total Assets – $7 thousand
  • Total liabilities – $90 thousand
  • No Revenues
  • Net loss – $25 thousand

What’s more things only get worse as you dig deeper into the company’s financial reports. While it is a fact that GDEE doesn’t seem buried under millions upon millions of dollars of debt, a significant chunk of what it does owe to note holders can be converted into shares of the company’s common stock at either a fixed price of $0.4, or at a 40% discount to the current market price.

Suffice it to say that a glance at the company’s financials is not reassuring at all. It hints that there is something very wrong with the current state of developments.

So how long will it take for that to change? How long will it take for GDEE‘s market cap to start representing the company’s actual situation?

One can’t reliably predict that, either, because the ticker is behaving in such an erratic way. There seems to be nothing keeping GDEE up – and yet up it is going, and it is not showing signs of slowing down. What we do know is that when the correction comes, it will likely be sudden and brutal – which is why investors should be doubly careful when dealing with GDEE.

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