Archive for April, 2009

I have chosen EV Innovations, Inc. (EVII.OB) as my new target. This company designs emission-free automotive propulsion systems using the latest lithium battery technology. From the beginning of April, different news on the performance of the company started popping up like mushrooms after the autumn rain. It was announced that the company was to begin producing their new product; it signed a letter of intent in order to start developing fuel systems and other releases were published. All in all, these new mushrooms seem to be nothing more than fly agarics.

Looking at the stock chart, which has been illiquid through the entire 2008 and the stock price has been going down, I can only say that you’d better do not eat these mushrooms or you will be poisoned. I have been very sceptical about sudden recovery of any company, and, actually, I still have the same opinion.

If you do not want to believe in me, then let’s look at the financial side of EV Innovations. As indicated in the quarterly report Q12009, the company does not have enough money and is unable to pay all the expenses it had. Besides, the long-term debt has increased by 85% from 2008 to 2009.

Getting back to the stock chart of EVII, and looking at the stock price jumping up by over 20%, I am really sure that this work is done by stock promoters. Just take a look:

• Stockhead.com has been compensated by a third party Cissonius N. V. $15,000 for a one month EVII advertising services contract;
• Hototc.com has been compensated by a third party Cissonius N. V. $15,000 for a one month EVII advertising services contract;
• StockEgg.com has been compensated by Cissonius N.V $10,000 for a one day advertising service contract on EVII;
• OTCPicks.com has been compensated a total of $2,500 by a third party (BlueWave Advisors) for EVII advertising and promotional services.

Now it’s your chance to decide whether you like these mushrooms, or you’d better stay away from them.

All three companies introduced in this article seem not to have anything in common. Superlattice Power develops rechargeable lithium ion batteries for power production in the United States; Sino Clean Energy produces and distributes coal-water mixture in China; and Viaspace provides products and technology for renewable and alternative energy that reduce or eliminate dependence on fossil and high-risk-pollutant energy sources. However, all of these companies were involved in recent stock promotions.

Let’s first take a look at each company and its performance. The stock of Superlattice Power, Inc. (SLAT.OB) has gone up by 30% during the trade yesterday. The stock has been rising since April 23rd due to the acquisition of equipment to produce ion batteries. However, it looks like a soap bubble to me. As far as I remember, this stock has been very illiquid and now it started rising out of the blue sky. This appears like the work of a stock promoter, and not the awakening of a business. Looking at the financial statements of SLAT, it can be stated that the company isn’t able to cover all its liabilities. After counting earnings per share of SLAT from 2007 to 2008, it is seen that the company’s performance has been going down all those years. And it’s no wonder that the stock price was also affected in a greater pace. However, the most unattractive thing about the company is that it did not have any assets in two latest quarters ( Q1 2009 and Q4 2008).

Another player in this game is Sino Clean Energy (SCLX.OB). At present, the stock is up by 10% at the price of .42 per share. The most possible explanation of the change in the stock price is that the company  got the grant for their business. Looking at the financial results of the year 2008, it can be seen that Sino Clean has enough assets to pay all the bills, actually, more than enough. One more positive sign is that the company’s performance has drastically changed in 2 years. The earnings per share in 2007 was 0.01, while in 2008 it reached 2.70. This indicates improving performance of the company.

Last but not least, Viaspace, Inc. (VSPC.OB) is in a fairly poor shape right now. From the latest filings, it can be seen that the company does not have enough money to pay all the bills. After counting the earnings per share of the company, it is observed that in two years the company has been going down, while its value in the market is negative. This makes the company look unattractive for investors. However, the stock seems to act in a totally different way. After the last trade, the stock went up by almost 10%  with the volume of 2,247,800.

All in all, the performance of Superlattice Power and Viaspace do not agree with the changes in the stock price. If a company performs poorly, how can the stock price rise? My answer is: “The stock is being promoted.” Here are my findings:

• 28th April 2009: Wise Alerts was compensated $10,000 for a 1 day program on SLAT by a third party.

• Willy Wizard has been compensated 750,000 #144 restricted shares by a third party for a two month (March 23rd - May 23rd) VSPC image marketing advertisement.

Although the performance of Sino Clean is better, it is still found on the list of stock promoters. Here it is:

• 29th April 2009: SuperHotPennyStocks.com has been compensated $35,000 by a third party for a two week investor awareness campaign;

• 28th April 2009: SuperHotPennyStocks.com has been compensated $15,000 by a third party for a two week investor awareness campaign.