Gear International Inc. (OTC PINK: GEAR) stock saw a surge in volume in the last trading session, 5X the 10 day average. GEAR stock rallied in February from the 10th to the 17th for a 566.67% gain from .006 to .042. The penny shares rallied again from the 24th to 27th for another 95.12% rally. However, during either of those rallies, GEAR stock did not trade as many shares in any trading session compared to Friday’s session. So, why is the penny stock of Gear Intl. so hot all of a sudden? Is it because of the connection they have with another one of the hot penny stocks: GWBU?
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GEAR Stock Chart:
Market Cap: 3.43M
52 Week High
As of March 31, 2012:
Shares Outstanding: 147.91M
Gear International made some changes to their corporate structure towards the end of last year which they updated via a press snnouncement in late March. Dale Geck, CEO and President of Gear Intl., stated that one of the changes was to reduce the authorized common stock from 2.9 Billion to 600 Million and to cancel all of the class “C” preferred stock by the end of March, 2012. According to their Q1 report (see here), the shares reduction had not yet occurred.
GEAR Q1 Financial Highlights:
For the three months ended March 31, 2012, the Company reported revenues of $46,800, gross profit of $8,801, total expenses of $56,876 for an operating loss of $48,075. The Company reported no revenues for the same period the year prior.
Balance Sheet Highlights:
• Cash and cash equivalents of $201,803,
• Mining Property and Ore Reserves of $12,774,153,
• Current maturities of long-term debt of $1,457,450,
• Long-Term Liabilities of $4,256,249,
• Accumulated Deficit of $237,570
GEAR Mining Properties:
• Gold River Mines: On May 5, 2008, WSRA acquired 8 mining properties from Gold River Exploration Inc. Two of these properties were subsequently sold. The remaining properties have a total of 88,000 oz. proven/probable gold reserves and 755,000 oz. of proven/probable silver reserves. At $1,600/oz. gold and $30/oz. silver, the gold reserves total $228 Million and the silver reserves total $22 Million.
• Gold Star: On October 15, 2011, a shareholder of WSRA contributed several mining properties including the Gold Star and Gold Crown. The Gold Star consists of 350 acres in central Arizona and has 168,750 oz. of proven gold reserves valued at $270 Million. The acquisition was recorded on WSRA’s books at $3.5 Million, the posted selling price of the property.
• Other Properties: WSRA has also acquired and/or expanded the Gold Crown, State Land Lease in Skull Valley and Table Mesa
About GEAR Stock:
Gear International, Inc. was originally GolfGear International, incorporated in 1996 as a golf equipment company. The Company recently filed the name change with FINRA and all other necessary agencies and altered its business strategy to include gold and silver mining, providing financing for gold and silver mining projects, and precious metals processing and refining.
18444 North 25th Avenue
Phoenix, Arizona 85023
Phone: (888) 519-4718
On September 26, 2011, the Company entered into a Joint Venture Agreement
with Mission Holdings, LLC that will place the Silver Cord Mine into production. The Silver Cord Mine is an historically producing silver and gold mine located in Yavapai County, Arizona with over 900 feet of developed tunnels following a prominent silver vein.
On November 3, 2011, the Company entered into a Stock Purchase Agreement with shareholders of Western Sierra Mining Corp. (OTC PINK: WSRA) wherein Western Sierra Mining Corp. became a subsidiary of the Company. The agreement provided for the exchange of 33 thousand shares of the Company’s Class B preferred shares and cash payments totaling $3.6 Million for shares representing approximately 60% of the outstanding common stock of Western Sierra Mining Corp.
Bottom Line: GEAR stock should be added to the list of penny stocks to watch for Monday and consider setting up for a day trade. GEAR stock has had pops in the past which have lasted for days but that would seem a bit risky considering that the financial filings for the year ended December 31, 2011 and for Q1 of 2012 were both just recently filed with OTCMarkets. (see here)