Words such as "revenue" and "merger" send investors scattering for the buy button as fast as any two words in the stock market. These are the terms that can send share prices sailing northward on merit alone, but when combined with investors fueling the fire usually ensures that it is not soon forgotten.
For the company, landing a long-term revenue-generating agreement can be the difference between many more years of struggling and negotiating and a secure future for the company, its employees and the shareholders.
Wilmington, North Carolina-based Global Earth Energy Inc. (Pink Sheets:GLER) has had an incredibly busy month with announcing corporate developments including restructuring coal agreements, adding valued members to its board and entering into a deal which could be worth more than $500 million in the next five years.
Wednesday, Global released more news that certainly qualifies as an addition to its game-changing month of February for the future of the company based on revenues. Wednesday morning, the Company announced that it has entered into a joint venture partnership with Innovated Concepts of Ethanol, Corp., a South Dakota corporation, which covers the whole gambit regarding ethanol.
Innovative Concepts in Ethanol is focused on the ethanol manufacturing industry from initial concept and design through construction, marketing, operations and processes. The Innovative team is a leader with proven experience and a record of excellence in the ethanol bio-fuels industry with a strong network of affiliate companies with whom it works daily.
Innovative Concepts delivers cutting-edge technology and comprehensive services designed to create and maximize bio-mass ethanol operation efficiencies.
It should be mentioned that the most recent deal with Orion, Michigan-based GFC 2005 LLC could net global approximately $150 million over the next five years and that will now be combined with the recent agreement with Innovative Concepts which is estimated to produce $80 million per year, or $800 million over the next ten years in total revenue.
While there is an 80/20 split to the favor of Innovative, it still amounts to $160 million for Global Energy Group over 10 years. A company with a share price of under $0.02 that is producing this type of revenue typically garners the attention of the investment community; and things are no different with GLER. Shares have risen from sub-penny levels of $0.002 in November 2010 to close Wednesday at $0.129 after touching $0.186 in intraday trading.
Technically speaking, this rise in share price appears to merely be a consolidation after the price per share spiked to nearly four cents earlier this month while the indicators are still maintaining a bullish positioning.
The sure-fire fact is that Global Earth Energy is signing agreements and releasing an abundance of news of corporate developments and that is grabbing the attention of the investment community as volume has increased as well as the share price and the stock chart certainly appears worthy of a closer look. Proper due diligence is always encouraged.
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