TFN Grapevine Pick: Bergamo Acquisition Corp. (BGMO) is now on Readers’ Radar
Today's Financial News - Posted September 2, 2009
Bergamo Acquisition Corp. (OTC:BGMO) makes big move on Pakistani commitment
by J. Christoph Amberger
Baltimore, MD — TFN: A new TFN Reader Grapevine pick… this time from TFN eNews reader Allen D.
“I have came across a company called Bergamo Acquisition Corp. (OTC:BGMO) which is based in Nevada. They are involved in a project providing energy to the Pakistani government worth more than $1.5 billion dollars, and have recently secured funding from LondonWall Investments Ltd. of $1 billion as a form of direct investment in the project. It will be great if you can review this company to fully explore the huge potential.”
Bergamo Acquisition Corp., through its wholly owned subsidiary, Bergamo E&A, has three infrastructure projects related to Pakistan. They focus on the development of clean energy infrastructure projects in Pakistan. The construction of infrastructure, including clean energy electric plants, solar renewable energy projects and light-emitting diode lighting projects delivers energy foundation for Pakistan based on its natural resources.
Today’s press release relates to LondonWall Investments‘ $1 billion equity investment into Bergamo E&A. This will fund the energy projects in Pakistan, including the clean coal plant and a series of solar projects. Palms were greased by the Pakistani government’s issuance of its Sovereign Guarantee to Bergamo E & A “for the purchase price of all of the energy to be produced by the projects and for the absolute guarantee of payment for the energy produced by the projects”.
“It should be noted that the Government of Pakistan has never failed to pay an obligation backed with its Sovereign Guarantee,” the press release reminds those of us for whom the word “Pakistan” conjures up suicide bombers and mountains of mayhem.
The stock is up 30% on the news today and currently trades for 40 cents.
This kind of move generates its own, self-sustaining momentum. Based on today’s action, I think the stock could easily hit 50 cents by tomorrow. But it’s a hard call: Stocks like this are likely to be volatile… so you either need to be very disciplined playing it… or apply generous trailing stops.
The language of the press release makes me think the company will be milking this Pakistani Committement for all that it’s worth… so we may have a bunch now news cycle-induced price-volume spikes ahead of us!
Next Article: Seeking safety: What’s next for gold prices?
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September 4th, 2009 at 2:07 pm
Are any of your grapeviners following GSPI ? They’re opening an electric car making facility in Kentucky next year.