On Friday Aug 23 Stockmister promoted GCIH and they managed to close the stock +1,014% in one day. Now one cannot take that percentage gainer quite truthfully due to the manipulation behind the whole scheme. Promoters like to see who can create the largest percentage gainer so that they have bragging rights which they can then boast all over the Internet and this usually increases their subscriber base and then pads the promoters pockets. What I mean by truthfully is the following, notice how in the last 2 months of GCIH historical trading, it only traded 2 previous days. So this is not a liquid company by any means, and this type of setup is what the promoters are targeting for this type of +1,000% play.
GCIH just released their latest 10Q earnings report last week Monday, Aug 19 2013. One doesn’t have to look too hard to find some questionable items within the 10Q filing. For example: GCIH working capital deficit of $21,463,914 as-of June-30-2013.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of its liabilities in the normal course of business. The Company has a working capital deficit of $21,463,914 and $28,109,045 as of June 30, 2013 and December 31, 2012, respectively. As the Company has limited cash flow from operations, its ability to maintain normal operations is dependent upon obtaining adequate cash to finance its overhead, sales and marketing activities. Additionally, in order for the Company to meet its financial obligations, including salaries, debt service and operations, it has maintained substantial short term bank loans that have historically been renewed each year. The Company’s ability to meet its cash requirements for the next twelve months largely depends on the bank loans that involve interest expense requirements that reduce the amount of cash we have for our operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern.
The Company is in the process of obtaining informal assurance from our current lender that our short term loans will continue to be renewed and further opening dialog with the lender to convert the short term loans to long term loans. Additionally, the Company is assessing its ability to increase rental rates for its leasing business in order to generate additional revenue. Further, the Company is continuing to focus efforts on cost containment to reduce general and administrative expenses. With its relevant hands-on expertise, the Company also plans to expand operations to include property management. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
I have compiled the last 11 stock pick charts that Stockmister has been involved with to try and get a feel for what we can expect GCIH might do in the next few days.