NE
Global Agri-Med Technologies Inc,
GAGO (Pinksheets)
GAGO Chart
Currently Trading: Under $0.16
What initially attracted me to GAGO is the fact that it is an oil company that has eleven proven oil properties in it's holdings, yet GAGO has an extremely low float, and over the last few weeks GAGO has shown investors large percentage gains on 'good' news but not necessarily 'game-changing' news.
However, last week the company announced they were in the middle of negotiations to acquire a significant gas property in Kentucky!
As you know, stocks soar on any indication that something major is in the works, and I believe we are about to see this with GAGO. At its current price, it represents an excellent opportunity for us to get in tomorrow. Just minutes ago they announced $1 Million in funding (we'll talk about this in a bit) but if even more news comes over the next few days, the sky is the limit with this one!
About GAGO:
GAGO is Global Agri-Med Technologies, but is a holding company for Quad Energy. So when I talk about Quad Energy just know that it's still GAGO and trades under the symbol GAGO.
Quad Energy is a junior oil and gas company operating out of Calgary Canada with a portfolio of oil and gas assets that include interest in Alberta and Saskatchewan. The company has eleven proven oil properties in its current holdings!
But What About 'Green' Energy?
I know everyone is looking for the next 'hot' green stock, and don't get my wrong, I like green companies too, but the bottom line is that oil isn't going anywhere for a very long time. This is why we still like oil companies as investment opportunities. Oil companies will continue to show significant profits for years to come due to the fact that many green energy technologies are still very speculative and will take years to even come close to replacing oil as a primary energy source worldwide.
According the International Energy Agency (IEA), Global Demand for oil will reach the highest level since 2007, with this rising consumption being led by faster growth in emerging economies in Asia (think China).
The bottom line is that oil companies will continue to produce profits for years to come and with GAGO we have the opportunity to invest in a company at $0.16 p/share that has eleven proven oil properties in its holdings.
$1 Million In Funding:
GAGO just announced today that they are proceeding with a non-brokered private placement in the amount of up to $1 Million Dollars to commence drilling on each of it's prospects (11 proven oil properties) before the year end. The company now has the necessary capital needed to take GAGO to the next level!
Technical Indicators:
The stock traded in May at its 52 week high of $0.43 cents, and right now its available at under $0.16. From a technical standpoint, this is terrific for us, as it's now trading above it's 50-day moving average which is a key indicator of a reversal trend.
As I mentioned above GAGO is an extremely attractive buy primarily due to its current price point ($0.16 p/share) and very low float. GAGO has made 3 separate moves of 20 - 65% in the last 2 weeks on relatively small volume, and minor news. With a low float and heavy volume GAGO could be positioned for an enormous run.
The message boards are buzzing right now regarding this possible acquisition of the Kentucky gas property, and due to just the anticipation I believe GAGO will starting seeing heavy buying at it's current price. Stocks often see some of their largest percentage gains right before major news is announced due to the anticipation, and then continue to move after the news comes out.
We won't know if GAGO actually does complete this acquisition until they announce it, but you can bet that if it happens, GAGO could really fly.
GAGO has amazing short term profit potential (as demonstrated above). The ultimate long-term success of the Company is dependent upon management's ability to produce and generate operating revenues in excess of expenses. With new acquisitions in the works they have an excellent shot for very long term success.
From the short-term perspective, any news will cause this stock to move due to the low float. It's a 'supply and demand' thing, and when the float is low there are not enough shares to meet the demand, which is what causes stocks to see larger percentage gains in a rather short time frame.
From this perspective, GAGO is one of the most attractive low-cost stocks I've seen in a long while.
I recommend keeping a very close eye on GAGO tomorrow. Interest seems to be buzzing right now regarding the Kentucky acquisition, and the news released just minutes ago regarding the company having the capital to commence drilling, instantly makes the price EXTREMELY attractive, considering just 2 months ago it was nearly 300% higher than it is today!