When a company makes an announcement with regards to an acquisition then the market reaction to the news provides a fair indication of how investors feel about it. Yesterday, the Global Entertainment Holdings Inc (OTCMKTS:GBHL) stock suffered from a selloff and went down by as much as 6% that it had managed to acquire a vintage consumer product named ‘Talking TP’.
Trading Data
On Wednesday, GBHL stock moved down 6.25% to $0.0015 with 13.3 million shares, compared to a volume of 5.18 million shares. The stock moved within a range of $0.0014 – 0.0018 after opening trade at $0.0016.
Global Entertainment Holdings Acquires “Talking TP”
The product had been acquired by Global Entertainment Holdings from Colby Marketing LLC, a company that it had acquired recently. Colby Marketing is going to operate as a fully owned subsidiary unit of Global Entertainment Holdings.
Talking TP is a flagship product of Colby. Although the market did not react kindly to the news and sent Global Entertainment Holdings down, it should be noted that Talking TP is a highly popular product. Since 2003, as many as 500,000 units of the product have been sold.
Most of the marketing was done through TV commercials and online. The company is now looking to further boost the web presence of Talking TP as a product. Although the market did not quite give its thumbs up to the announcement, it remains to be seen how the whole thing pans out over the coming days.
Key Quote
Gary Rasmussen, CEO of GBHL commented, “We have recently retained the services of technology and Internet marketing professionals to update Talking TP’s web presence and to prepare a social media campaign that will launch this Fall. By marketing direct-to-consumers, our Company anticipates revenues for Talking TP could increase three-fold.”
Technical Data
GBHL stock is above the 20-Day and 50-Day Moving averages of $0.0015 and $0.0014 respectively. However, the stock is trading below the 200-Day moving average of $0.0018. The company has a total market capitalization of $856K. The stock is down 28% over the past 6 months.
