Archive for May, 2009

Defense Solutions Holding, Inc. (DFSH.OB) supplies, refurbishes, modernizes and maintains military vehicles and equipment worldwide. In May the company announced that it signed two distribution agreements. One of them was with Dynamic Defense Materials and another with iRobot. However, these were only the press releases and are still not justified by reporting the events to the SEC. For this reason, I have suspicions that the distribution agreements might be coming out of the blue sky. The company still has some time to file 8-K forms, so let’s wait and see what happens.

Another bunch of important news on the company is that DFSH has paid 50,000 free trading shares to Shazam Stocks for promoting its stock. With the current price of $0.46, that would be $23,000. In addition, the company released its annual report though it was late to do that. Unfortunately, this report does not show any improvement of the financial situation of Defense Solutions.

From 2007 to 2008, the current assets of the company sank drastically from $1,055,744 till $306,119. In the meantime, liabilities ballooned twice: in 2007 it constituted over 2 million dollars, while a year later it was over 4 million. Besides, major reverse is seen in operating loss. In a single year it has increased by 73%.

All the indicators mentioned above signify that the Defense Solutions Holdings is currently having serious difficulties. It looks like the economical crisis has affected the company noticeably.

interCLICK, Inc. (ICLK.OB) is the provider of Internet advertising solutions for Internet publishers and advertisers in the United States. The primary operation of the company is the interCLICK Network, an online ad network that combines behavioral targeting with site by site reporting, allowing advertisers to identify and track their desired audience. After analysing the company’s performance in the year 2008, I have noticed two increases and two decreases in the filings.

The current assets have increased by 109% comparing the results of March and December, i.e. it moved from $3,838,000 up to $8,036,000. Besides that the gross profit jumped up twice: from more than one million dollars to over three million dollars.

The decreases in interCLICK cover the reduction of the long-term debt from $78,000 to $9,000. In addition, the operating loss hasn’t become larger but has rather declined: in March the loss was of $2,898,000 and in December it remained $544,000.

On the one hand, the company seems to be recovering from the bad situation but there is one thing which does not improve this situation: interCLICK bought stock promotion service for $20,000 from Lebed.biz.

U.S.-based China manufacturing company Worldwide Energy & Manufacturing USA, Inc. (WEMU.OB) specializes in products for customers in the industries of solar energy, aerospace, wireless telecommunications, medical equipment and automotive industries. In the middle of April, WEMU filed the 8-K form in which it announced that five new members were appointing the Board of Directors. To my great surprise, only a month later the public release on this announcement was made. It is really interesting why this event has been postponed so much.

In addition, Worldwide Energy & Manufacturing USA paid $2,500 and 800 shares of rule 144 stock to Red Chip Companies. However, the stock price of $5 per share does not reflect the financial situation of the company. Here are some things one should know about WEMU:

· According to the results of Q4, there is more than enough money to pay all the bills.

· Operational income has increased by almost 80% if March 2008 and December 2008 are compared.

· The company has a long-term debt of $997,000.

· After counting the earnings per share ratio in four quarters of 2008, it is seen that the company’s performance is going south.

Although the positive evaluation of the company is present, the debt, stock promotion as well as the company’s performance should not be excluded in case you are considering the investment opportunity.

The aim of Global 8 Environmental Technologies, Inc. (GBLE.OB) is to preserve our planet through environmental consciousness, technology and education. Being very illiquid, the stock has risen by 9% and remained at $0.38. Still it does not seem to be clear why the stock started getting traction.

If you looked at the financial information in the report of December, you would see that assets of the company dropped by 41% in one quarter, while operating loss almost doubled from 2007 to 2008: it went down from $3,450,000 to $5,634,000. In addition, Global 8 is unable to cover all the present liabilities. Getting back to the question why the stock price has started rising, it can be stated that it was influenced by the deal with Willy Wizard. The firm got $4,250 for the service of promoting the company.

Another company to be watched is Adventure Energy, Inc. (ADVE.OB), an energy exploration company with operations in the Appalachian Basin. Although this company has been established in 2008, it seems to be attracting investors: after the last trade the stock went up by 16%, and is now worth $0.52.

Adventure Energy is looking for support and new investors, thus it arranged a deal with OTC Picks and paid 40,000 free trading shares. This company has no liabilities, while its assets are $33,000. As announced in the annual filings, there is an operating loss of $763,000.

Finally, it should be mentioned that both companies, established last year or 10 year ago are trying to improve their image by stock promotions. Therefore, the change in stock prices does not mean that the company has started to perform more effectively.

A goal-oriented exploration and production company aiming to become an intermediate level oil and gas producer within 12 months, American Petro-Hunter (AAPH.OB) has been recently put on the stock promoters list. It was announced that the company paid $6,500 to different parties for stock promotional services. Thus I would like to take a closer look at the performance of AAPH.

Although American Petro-Hunter announced about its intentions to acquire 25% of working interest in the Poston Prospect, Kansas, it does not look like a legible information because of several reasons. First, the company tends to file their annual and quarterly behind time. This signals that the company has some problems with their numbers. Second, AAPH isn‘t able to cover all its liabilities. Third, there is an operating loss of $44,000. Besides, the assets of the company has fallen 4.5 times in a single year.

All in all, the unattractiveness of the company depends not only on the paid promotions but on the unstable financial situation as well.