Although GEOBIO ENERGY INC (PINK:GBOE) stock declined both in price and volume following the publication of the annual report for 2010, it was yesterday's session that marked an abrupt change in trend. The share price rallied and closed at $0.375, thus adding 53% to its value. The volume soared to 380 thousand - 14 times higher than the previous Friday session - and still way below the average figure of 2.55 million.
Such a rapid fluctuation is usually accompanied by either an inspiring press release, or a strong promotional campaign. Nothing of the sort has occurred in this case. The sudden change in GBOE stock seems to have come out of the blue. At the same time, however, the turnover is way too far from reaching its early-December levels. While the current trend is developing in favour of some investors, the complete lack of up-to-date information is a double-edged sword as future fluctuations are, in such cases, fairly difficult to predict.
Being a development stage company, GeoBio Energy, Inc. has its headquarters in Seattle, Washington. Just like most pink sheets, it has also underwent several name changes so far. At present, the company focuses on the manufacturing and distribution of biodiesel.
GBOE has not filed its latest 10-Q report encompassing the third quarter of 2010. Instead, just six days ago, i.e on Jan. 7, it filed an annual 10-K form for the fiscal year ended Sept. 30, 2010. It reflected both price and volume straight away. A closer look at the report is more than enough to justify the massive decrease. On first reading, a working capital deficit of $2.4 million is to be seen. Compared with the same period of the previous fiscal year, it shows a 116% surge. As for the company's net result, it is actually a loss of $2.75 million in comparison with $1.2 million for the previous fiscal year. The total accumulated loss since inception equals to $25 million.
As seen from those financial data, the company seems to have a long way to go before finishing a year in the black.