The 10-K stock report for GOOO – beware of not reading it!
Penny stocks are are common shares of small public companies that trade at low prices per share. The GigHarborTimes.com selected a penny stock at random named Golden Opportunities Corporation with a – stock symbol: GOOO to review its Form 10-K report filed with the Securities Exchange Commission.
The GigHarborTimes.com isn’t sure what GOOO exactly does, but it’s balance sheet of January 31, 2013 shows a balance of $ 1,659,931 dollars of “additional paid in capital”.
Whatever GOOO does, we speculate that it does it efficiently since its president plans to devote only 20 hours per month to the business.
The GigHarborTimes.com has excerpted part of their company 10-K form to illustrate why an investor should read at least part of a 10-K form before “investing” in a penny stock.
The excerpt is as follows:
Description of Business
The world-wide impact of the economic recession of 2009 and continuing through the current fiscal year has delayed the execution of our business plan. However, as the world-wide economy improves, we continue to seek out the best potential opportunity for the shareholders.
The growth of the economies in Asia has provided enormous opportunities to many professional companies in the region. In order to gain access to the opportunities across the emerging economies, Golden Opportunities Corporation (the “Company”), has developed the following business plan (the “Plan”).
We intend to use the experience of our sole executive to will implement our plan as a business partner with a active companies in the marketing or financial public relations market, i.e. assisting our clients in their IPO and other types of fund raising activities, or any other sales or marketing of products or services in Asia or any other company actively engaged in the professional services market or in the sales and /or manufacture and distribution of services or products in Asia.
We are in the process of evaluating several potential temporary-to-permanent office locations convenient to the Hong Kong business center. No lease agreements have been negotiated at this point.Employees
We have no full time employees. Our president has agreed to allocate a portion of his time to the activities of the Company, without compensation outside of Company stock. The president anticipates that our business plan can be implemented by his devoting approximately 20 hours per month to the business affairs of the Company and, consequently, conflicts of interest may arise with respect to the limited time commitment by such officer. From time to time, Mr. Zahorik engages the services of professionals to perform limited tasks on behalf of the Company.
The GigHarborTimes has questions as to how a business could produce a profit for investors based on the information provided to the SEC. We could speculate that the work or service performed is accomplished by texting, phone calls and emails. However, we feel that is giving an overly optimistic view to the business model described in the 10-K form.
The GigHarborTimes wishes to know what reader opinions are?