GASE Energy, Inc. (OTC: GASE) is a shell company that has been looking for a reverse merger to become operating. Since the beginning of the month, GASE stock has been climbing investors’ watchlists after the company promised to share updates regarding a merger into a profitable industry. With this in mind, GASE recently received investors attention after agreeing to acquire 5 subsidiaries of an e-commerce company mainly operating in Australia and the ASEAN region. Considering the promising potential of the e-commerce industry, GASE could be one of the best penny stocks to buy now before exploding.
GASE Stock News
Originally focused on acquiring and developing natural gas properties, GASE is shifting its business focus to the lucrative e-commerce industry after signing an agreement to reverse merge with 5 subsidiaries of Btab Group. According to this deal, GASE will issue 63 million common shares and 5 million class B common shares with voting rights in exchange for Btab’s 5 subsidiaries. Through this deal, the combined entity would have a valuation of more than $75 million with more than $11 million in annual revenues. At the same time, GASE has the option to acquire additional subsidiaries from Btab in the future. Based on this, GASE could be one of the most undervalued penny stocks to buy now considering its market cap of $12.7 million.
With this in mind, many investors are bullish on GASE stock’s future prospects upon the reverse merger thanks to Btab’s major potential in the e-commerce industry. Since it was founded in 2014, Btab has been providing e-commerce and social commerce solutions to help small and medium businesses realize their full potential in the online and offline space.
To achieve this, Btab utilizes its 12 subsidiaries in Australia, the ASEAN region, as well as locations in the UK and the US to provide these businesses with suppliers, online stores, fulfillment, and marketing to grow their operations. In this way, Btab operates as a business hub for small and medium businesses not only as a tech company. In light of this, GASE could be one of the best penny stocks to buy now as it could reach new highs after finalizing the deal with Btab.
On that note, Btab is looking to expand its reach into Europe and the Americas where there is a substantial market for its services. In this way, Btab could network tens of thousands of small businesses to hundreds of millions’ worth of products which could be out of reach for these businesses. Moreover, Btab has several warehouses as fulfillment centers for expedited delivery of goods which it can offer to these businesses. As a result, Btab could allow these businesses to grow their business and customer base while maintaining costs to remain profitable. Considering the high demand Btab’s services could attract in these markets, GASE could be one of the penny stocks to buy now as it could explode in the future.
Once this reverse merger is completed, Btab will have the right to nominate three directors to GASE’s board. At the same time, both companies plan for a name change to better reflect the company’s new business direction. Meanwhile, investors are increasingly bullish on GASE’s plans to uplist to the NASDAQ in the future which could be soon given Btab’s international reach and operations. In light of this, GASE stock could be one of the best penny stocks to buy now and hold onto for the long-term.
Media Sentiment
@BMoeBlessed is adding GASE at its dip following the reverse merger announcement.
@thommic is bullish GASE could have major potential thanks to its reverse merger.
Technical Analysis
GASE stock is currently trading at $.32 and has supports near .0271 and .0164. Meanwhile, the stock shows resistances near .0389, .0462, and .0650. After the stock reached a new 52-week high upon the reverse merger news, GASE dropped significantly mainly due to investors taking profits at the 52-week high. However, GASE could be poised for a rebound soon as the company has major potential in the e-commerce industry upon the closing of the deal.
Considering that the stock closed below its 50 MA support, GASE could potentially further drop near its support which could be an ideal entry point for new investors. Meanwhile, if the stock recovers and breaks through its 50 MA, a good entry point could be near $.034. With the reverse merger yet to be closed, GASE could be one of the penny stocks to buy now in anticipation.
Since reaching a new 52-week high, accumulation has been trending downwards and the MACD turned bearish due to investors taking profits. Meanwhile, the RSI cooled off significantly from 68 to 45 which leaves enough room for the stock to have a strong movement in either direction. As for its share structure, GASE has an OS of 399 million and a float near 27.5 million.
GASE Stock Forecast
With the company set to become operating soon, many investors are bullish GASE could be one of the penny stocks to buy now given the potential of Btab in the e-commerce scene. While the company will reverse merge with 5 subsidiaries initially, GASE could be poised for additional growth in the future as it has the right to acquire other Btab subsidiaries. Considering that all 12 subsidiaries of Btab could have combined estimated revenues of $40 million annually, GASE could be well-positioned for substantial financial growth in the future. As the company is planning for a name change and a NASDAQ uplisiting in the future, GASE could be poised to reach new highs in the long-term.
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