the OTC .today

GBGM: Just A Bit More Than A 1.2 Million Share Float

June 11, 2012: The touts' claims of a 1.2 million share float in Global Gaming Network (GBGM) are laughable indeed. "GBGM has 1,200,334 in the public float!, says BestDamnPennyStocks.com" Liars!  "On Friday, 2.6 million shares of GBGM traded, more than 2x the float", fibs ClubPennyStocks.com.  StockRockAndRoll.com and it's siblings promotes the fallacy with "1.2M  <--- Incredibly Low Float!" StockMister.com, not willing to jump into the con with both feet, wisely avoids the float controversy by not mentioning it at all, neither in its email nor on its splash page newstockpick.com. Its sister newsletter, StockExploder.com, however does make the mistake of perpetrating the lie about the "low float".

The truth is that GBGM's float may actually be more than 546 million shares.  And unless you're willing to believe that the entire float turned over 13 times already today (and if you are, we beg you to get out of the stock market NOW!), it's not difficult to see.

According to this filing, on December 31, 2010, there were 12.440 million shares of Series B stock issued and outstanding.  As of December 31, 2011, 2,000,008 of those shares no longer exist, so that leaves 10,439,992 Series B shares that can be converted well past any legends imposed by Rule 144. Conveniently, the 1.2 million share float was declared on December 31, 2011, so who knows how many of those shares or the Series A preferred shares have been actually converted.

What we can see from this filing, is that the Series B preferred shares can be converted to common shares at a rate of 10 for 1.  That brings the possible float to 104.4 million plus 1.2 million, equals 105.6 million shares.

Additionally, the December 31, 2011 filing reports that there are already 441,205,926 post reverse-split common shares of GBGM issued and outstanding.  Where the deception is truly displayed is that the float was conveniently reported on December 31, 2011, which would not be what the float could have become on January 1, 2012, the day the restriction on all of that common stock would have been lifted.

The float is potentially, 546.8 million shares.

The float has not been updated on OTCmarkets.com for the single purpose of perpetrating this Pump and Dump!  And no, there is no obligation to report the actual float.

Now let's look at the trading.

The market hasn't even opened yet, but the market makers (the only ones who can buy an OTC stock pre-market) are already loading up on shares in anticipation of a gap up, as seen at 9:27:21.



The market has been open 51 seconds and predictably the stock has gapped on 1.15 million shares. Many of the eventual bag holders have still not read their emails which reveal which stock is the object of the pyramid scheme du jour.



Four and a half minutes later, the volume has more than doubled and the stock continues its quick ascension to the high of the day.



At 9:40:46, less than 11 minutes since the open, the share price is in danger of running away.  This is not good for the dumper, as too much gap will a) create profit taking and b) keep others from entering into the stock as they will think that they missed an opportunity for maximum profits.  The answer?  Dump more stock to meet the demand.



Not quite 21 minutes into the day, we see the forced retracement, designed to convince additional suckers that there is still a chance for "big profits".



At 10:13:22 we've hit the high of the day, never to be seen again to this point. If we are to believe the claims of a 1.2 million share float, then it has already turned over 8.5 times in the 73 minutes since the market opened and twice in the last 23 minutes alone.  You would think that such demand and turnover would create a significantly higher share price, wouldn't you? Or are we to believe that everybody is playing this for a one tenth of a penny profit?



It's now 10:17:20 and increased dumping keeps the share price from going even higher.  410K shares have traded in the last 4 minutes.



Slam! Another 220K shares comes out over two minutes and the share price drifts into its trading range.



At 10:25:48, the tight trading range has been firmly established, just like the dumpers had hoped. This will enable them to convince most holders to wait for higher profits, while encouraging those yet to enter that the share price is stable.  All the while, the insiders are ringing the register.



By 10:30, it should be obvious what this stock is going to do for the next several hours.  Volume has slowed, as the initial euphoria has subsided and we are firmly in a tight range.  The pretend float has now been turned almost 10 times.  Yeah, right!



An incredible 700K share dump in the space of 11 minutes has dragged the share price down and created a lower boundary in the trading range.  Still somebody, just cashed in $300K of intrinsically worthless stock.



And here we are at 2:25:33pm.  The stock has been trading in a .43 - .46 trading range all afternoon, as dreamers wish to see highs before bailing and newbies buy into delusions of grandeur. StockMister, bolsters the dream buy suggesting that this could be an "AWESOME pick" (i.e. AwesomePennyStocks.com pick).  We say, there is no chance that this will be an "Awesome" pick, unless it is in a psych out, like the one that suckered in thousand for millions of dollars of quick losses in AWSR and RARS. AwesomePennyStocks.com does not promote those stocks that have already been promoted heavily and these day generally promotes only those stocks that it controls.



It bears repeating that a tight trading range is beneficial to the Pump and Dump scheme, as it promotes the illusion of a stable market, support for the stock and the dream of higher highs.  We talk about sideways Pump and Dumps in our article, "It's A Pump & Dump", and if you haven't read, you should.  Right now.

The bottom line:  GBGM currently has a virtual market cap of no less than $260 million.  This 6 year old company, is so successful, that it in that time, it has amassed $363 in cash in the bank and perhaps $800K in other hard assets, most of which are probably imaginary.

This will crash and crash hard.  Today, tomorrow or the next day.  Will you be holding the bag when it does?  One thing is for sure: the insiders won't be.