GAEC – Wow, the SEC is Paying Attention
Gulf Alternative Energy Corp (GAEC) is a rather sketchy company. I shorted and made a few dollars from 2.45 down to 2.13 (11.8%). The support at any price appeared to unravel and I attempted to short again at $1.60. I was unable to get much as they fell, but ended up with 55 shares. This trade might just pay for lunch. Lunch at Subway or Moe’s.
The SEC halted trading in the shares for the following reason:
It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Gulf Alternative Energy Corporation (trading symbol: GAEC) because of questions regarding the accuracy and adequacy of information contained in press releases and on its website regarding the quality of the company’s technology and the company’s business prospects and agreements.
Full detail at: http://www.sec.gov/litigation/suspensions/2009/34-60410-o.pdf
I am no expert, but that sounds bad. Real bad. Not good. Bad! What is surprising is that the SEC is picking up this blip that barely even garnered a reaction on the Yahoo stock message boards. You are almost always able to find chatter around some of these P.O.S. companies on the YHOO finance boards. Someone must have blown this company in. I can’t see any way that it would be on the radar otherwise. My hunch is that it is a jealous, or bitter, former employee or partner.
From TimothySykes
GAEC I shorted because the company is the sketchiest thing I’ve seen in a while as evidenced by its top two shareholders being named “Joe Schmoe”…the stock is being manipulated high from 25 cents to $2.50 in the last month, I’m short 800 at $2.36 and will hold…the key here is simply finding shares to short, the stock shows no signs of stopping so I’d love to get squeezed so I can take a greater position at higher prices as this kind of manipulation almost always ends in 50%+ intraday collapses.
We’ll see how it plays out. I am short a whopping 55 shares @ $1.60. My hope is that it opens up on 8/14 (that is when the SEC stated it will) and that it will be at around $0.50. I’ll cover and take a buddy to Moe’s with my $50.
Wow. I just went to the Gulf Alternative web site to grab a logo for use in this story. The site is a wreck (seem image below).
Gulf Alternative Energy
Actually, it isn’t as bad as it first appears. Well, it is, but not if you know how to find the real site:
Dead: http://www.gulfalternativeenergy.com
Real: http://www.gulfalternativeenergy.com/index.php
It actually appears as though this company was recently GFET. Odd and sketchy to say the least.
When I bank my small gain on GAEC, I’ll probably take the guy to lunch who brought Omnova to my attention (OMN). I picked up OMN @ $2.90 and it has surged to $6.30. It shows no signs of slowing. The chemical sector is hot and earnings are behind them. There is room to continue.
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