GDNO financials here:
sec.gov
Ok, I admit I have not done any due diligence in this company, so I spent a few minutes looking over the only info I could find, which is their 10-SB document they submitted to the SEC less than 1 month ago, on July 22.
Here is some information taken from this document, with my commentary afterwards:
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At March 31, 1998, the Company had a cash balance of $25,221. Net cash of $73,985 was used for operating activities for the period ended March 31, 1998 principally as a result of the net losses generated during the period. Purchases of property and equipment totaled $10,794. The Company expects to incur negative cash flow from operations for the foreseeable future, as it continues to develop its market and operations.
The Company financed its operations from inception through March 31, 1998 using $110,000 loaned to the Company by two of its Directors and a member of its Advisory Board. These loans were secured by notes with an interest rate of 10.0% per annum, due in December 1998.
As of June 24, 1998, there were approximately 14,685,800 shares of Common Stock outstanding
There were no underwriters employed in connection with any of the above transactions.
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So, it looks to me like this company is "valued" at 117 million dollars based on today's closing price of $8.. (with no volume, I might add). Where did this valuation come from? There was no underwriter to give liquidity to the shares, it looks like they did a reverse merger with a shell company named Atlantis Ventures who's stock was around 6 cents a share when this occurred. From this SEC form, it looks like the original executives ponied up 100 grand to finance this thing, and they have 25 grand left in the bank. I found it weird that they only have 10 thousand dollars worth of physical assets!! Two or three computers and some office furniture costs more than that! I liked the company at first because they seemed to have some smart cookies working there, but unless I am completely missing something the valuation looks manipulated. This sort of thing is much more easy to occur on the OTC:BB, where GDNO trades.
Judging on this quick lookover of the SEC filing, it does look suspicious, especially since my charts show the volume on this stock as being almost zero since the first day it jumped from 6 cents to 5 dollars. Where did the current price come from? Did they pull it out of thin air?
I still love the concept of this company, but now I'm a bit worried about the financials. Does anyone have any more information? |
