Archive for May, 2009

In the following article, I would like to tell you what I have found about American Green Group, Inc. (AMNE.PK), a U.S. based company rapidly moving into the six billion dollar building insulation business.

Recently, the company has announced that the record date for the 5 to 1 forward split is postponed to a later day. This event does not lead AMNE to a brighter future. Usually these splits indicate that small investors don’t matter to companies.

Another interesting new is that the company announced to have reduced liabilities by over $200,000. However, this does not sound positive. American Green Group just announced this and there was no financial report released because it does not report to the SEC.

Besides, AMNE paid Small Cap Voice 120,000 restricted shares, although the stock price wasn’t affected and fell down 36%. Its current price is $0.0045.

All in all, the company seems to be having huge problems. There might have been a black cat on its road.

Aethlon Medical, Inc. (AEMD.OB) researches and develops a medical device known as the Hemopurifier that removes harmful substances from the blood. In the quarterly report, I have found this information on the financial situation of the company, as well as the note on going concern:

We have experienced continuing losses from operations, are in default on certain debt, have negative working capital of approximately ($4,248,000), recurring losses from operations and a deficit accumulated during the development stage of approximately ($37,383,000) at December 31, 2008, which among other matters, raises significant doubt about our ability to continue as a going concern. We have not generated significant revenue or any profit from operations since inception. A significant amount of additional capital will be necessary to advance the development of our products to the point at which they may become commercially viable. Our current financial resources are insufficient to fund our capital expenditures, working capital and other cash requirements (consisting of accounts payable, accrued liabilities, amounts due to related parties and amounts due under various notes payable) for the fiscal year ending March 31, 2009. Therefore we will be required to seek additional funds through debt and/or equity financing arrangements to finance our current and long-term operations.

In addition to the dangerous financial situation of the company, it should be mentioned that AEMD agreed to pay RedChip Companies, Inc. 300,000 shares of Rule 144 common stock for 6 months of the investor relations services. The stock seems to have been affected by this promotion: now it’s 7% up, and is worth $0.24.

Small Cap Voice got the compensation of $40,000 and 150,000 shares from GWS Technologies, Inc. (GWSC.OB), the provider of wind turbines, and other wind and solar products, as well as alternative energy solutions to the government and consumer markets. Unfortunately, the stock didn’t get the traction from investors and is now 4% lower at $0.31. Let’s look at the annual results of the company:

* Current assets dropped from $285,000 in 2007 to $140,000 in 2008.

* Out of $140,000 of current assets, 90% constitute inventory, thus money of the company depend on sales. However, the company is unable to pay all the debts.

*Current liabilities increased more than twice.

*Operating loss lowered from $2,840,000 to $1,448,000. It is still losing money.

Besides, it can be mentioned that the announcement of GWS Techs about the joint venture with SEDCO, Inc. wasn’t real.

The stock of OCTuS, Inc. (OCTI.OB) dropped by 36% and is now worth $0.16. Although it has been trading on a very illiquid basis, variation in volume can be observed. However, the changes do not seem to be present in the company’s performance.

The company has no assets for several years. This is most probably influenced by the fact that OCTuS has no significant operations and only seeks alternative business opportunities, which may include acquisition of other software products, or acquisition of other technology. In addition, there is no gross profit.

One more problem is the increase in liabilities by 15%. That wouldn’t be a tragedy if the company had assets. In this case, the debt increases and there is no way to cover it.

Besides, the company made some announcements that new director as well as two new members of the management was appointed to the company. Unfortunately, the news reminds me hype rather than reality. Most suspicions are due to the absence of the 8-K filing.

I also look at the company with distrust because of the involvement in the stock promotion. OCTuS has just paid $5,000 to Small Cap Voice. I am wondering whether this is the first and the last promotion or not.

Super Hot Penny Stocks were paid $15,000 by Sun Tzu Corporation (STZU.PK), a leading New Age Beverage Company that owns multiple brands and packages, offering several product lines of innovative energy drinks and non-alcoholic mixers. The stock chart of the company looks shabby. The stock trades very illiquidly. Yesterday it went down by several percents and is at $0.275.

In addition to the stock promotions, it has been announced that the Company plans to increase international distribution as a result of its participation in this United States Department of Agriculture sponsored program. Unfortunately, plans usually don’t come true. I am not sure whether this is the case but it might be one of the possibilities.

For these reasons, one should carefully consider the company as the investment object. First, attention should be paid that the stock is traded on the Pink Sheets. Second, stock promotion has never been the best way to make the company famous.