By: Matt Rego
Shares of developing stage company focused on professional services in the music recording industry, Golden Edge Entertainment, Inc. (OTC Pink: GDEE) extended its strong upward momentum today, with gains of around 12% through the early hours of trading on Friday, July 8, 2016. Over the past three months, Golden Edge Entertainment, Inc. (OTC Pink: GDEE) has seen average daily volume of around 27,134 shares. However, nearly 101,500 shares or $172,550 in dollar volume has already exchanged hands during the Friday session.
Golden Edge Entertainment, Inc. (OTC Pink: GDEE) has been on a tear lately, rising from $0.40 per share around June 22 to $1.70 per share, as of July 8. However, there has been little information or circumstance that would help push the stock up that high. The company’s latest earnings released showed little to be thankful for, with total assets around $7,000, total liabilities at $90,000, no revenues, and a net loss of $25,000. Ultimately, the stock is ripping higher, but seems the rally is built on very fragile foundation that could eventually collapse.
Here is an article on Golden Edge Entertainment, Inc. (OTC Pink: GDEE):
Although the ticker’s ascent began a couple of days before the event, it could be argued that it was a pump financed by the company itself that sparked GDEE’s ascent to the top of the charts. Interestingly enough, ever since that tout hit the web, the ticker has only been gathering upward momentum. What’s disquieting about this situation is the fact that this state of developments has lasted for more than two weeks. Why?
Because while GDEE may boast about incorporating new subsidiaries and signing collaboration agreements, but said actions can only serve to improve the chances of a company to capitalize on a new market opportunity. Unfortunately, nothing in GDEE’s financial reports suggests that it is ready to capitalize on the streaming market – or anything else, for that matter:
- Total Assets – $7 thousand
- Total liabilities – $90 thousand
- No Revenues
- Net loss – $25 thousand
Calling the company’s financial state “unimpressive” might just be the understatement of the year. The fact that it has next to nothing but debt to its name certainly doesn’t present GDEE in a favorable light. Then again, neither does the fact that a serious chunk of that debt is in the form of toxic debt that can be converted into shares of GDEE common stock at either a fixed price of $0.4, or at a 40% discount to the current market price.
So, at the end of the day, what do we have here? Boasts unbaked by actual achievements? Check. Paid pump? Check. Toxic convertibles? Check. Overall idleness and mediocrity? Double check.
With all of this in mind, it should be more than obvious why it is something of a miracle that GDEE hasn’t crashed and burned yet.