Friday's late start on this new GBEN campaign, enabled the stock to close near its highs for the day. However, as the share price approaches levels not seen since the January P & D, we'd expect old bag holders to join the rush for the exits today adding to the selling pressure that will be created by insider selling.
Fool you once - shame on them. Fool you again - shame on you. GBEN will close deep in the red, probably today. Do not get caught in it!
January 11, 2013: On Friday, Research Driven Investor, publisher of several of the more followed newsletters, including Penny Stock Scholar and Research Driven Alerts, begins pimping Global Resource Energy, Inc. (GBEN) for the third time. GBEN is a Canadian scheme that is mostly in the business of lining the pockets of its insiders.
RDI is using its immense powers of persuasion again, as it seems to be the pimp best able to convince pigeons to come to roost. And it seems that someone knew that Friday's Pump & Dump was coming, as Thursday's volume shot up to 1,437,055 shares, a considerable increase and taking the share price up 62.5% in concert. Expect all that stock to be sold into Friday's P & D, along with a bunch more insider shares. We'd be shocked if the stock didn't close considerably in the red.
With Friday's endeavor, GBEN is to undergo its 5th P & D campaign in 6 months, underscoring the amount of insider stock yet to be spread around. A look at the chart below, illustrates just how little the sellers care about the price they get for the stock. After all, they can always print more. The relentless selling has devalued the company's market cap, and with it the investment of many bag holders, by as much as 94.4%, in just that short period of time.
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On 9 of the 13 days that GBEN was promoted, there were more losers than winners. On 6 of those days, losing trades accounted for better than 90% of the action. On all but four of the 13 days, the share price closed lower than where it opened. This is a sure sign of insider selling, especially considering that insiders held almost all of the stock when the first Pump & Dump campaign began in July of 2012.
GBEN has yet to earn its first dollar since its October 2008 inception and has incurred very little with respect to operating expenses, which are mostly administrative and management fees. In other words, the company spends money on little else other than salaries to its officers. This lends credence to our opinion that there really is no business here, other than the hype and resulting dumping of intrinsically worthless stock.