Archive for the ‘Uncategorized’ Category

Doing a little research on Zevotek Stock (ZVTK.PK) aka (PINK:ZVTK) today, and I couldn’t help but notice that the company’s address didn’t sound like a real office.  So I decided to look it up on Google and this is what I found.  Could this be there corporate headquarters.

I am still trying to figure out where the company operates.  Probably not in the kitchen because they would get food all over there documents.  It must be they are operating out of the closet or the basement.

And guess what!  The house is also for sale, and apparently not doing so well in the market.  According to Streeteasy the house has been on the market for 6 months and they lowered the asking price three times.

So what happens to shareholders if the basement gets flooded?

.0001 Penny Stocks and why to avoid them:

We are starting a new column where we talk about stocks at the lowest price they can possibly be.  Stocks for .0001 for this price you can get one million shares for $100 but are they really cheap?  Our opinion is no and these are generally the worst types of investments.  Here on this section we will explain the pitfalls of investing in

Recognized as one of the most messed up companies on the market, SPNG.PK can be seen as potential buy only by people with high risk tolerance and gambling addicts. On forums, people were hoping (and probably still are) for a short squeeze and a price run up. The keyword is hopping.

People stick to SpongeTech because they have a real product. A real product and crazy management who drive the company sideways. If you have an urge to gamble some money without visiting a casino, time yourself and go ahead cause you’ll get a change when these guy’s release some spacecraft cleaning sponge targeting NASA.

Recently there has been a lot of activity surrounding Bonanza Oil and Gas.  The shares have been trading quite actively after they announced some seemingly positive news and had a few research reports issued on them.  The stock has declined over 80% since from it’s February highs.  Our concern with Bonanza is the structure of their convertible notes.  They have made some positive steps to correct this, but a toxic convertible is still a possibility even with the restructuring.

Here is a clause we dug out of a February 9th 8k Filing issued by Bonanza:

“The Restructured Notes were convertible into common stock, at Triumph’s option, at the lesser of (i) $0.0025 or (ii) a 50% discount to the average of the three lowest trading prices of the common stock during the 20 trading day period prior to conversion (the “Variable Conversion Price”). Triumph has agreed to restrict its ability to convert the Restructured Notes and receive shares of common stock such that the number of shares of common stock held by it in the aggregate and its affiliates after such conversion or exercise does not exceed 4.99% of the then issued and outstanding shares of common stock. On January 29, 2010, the Company entered into a Letter Agreement with Triumph pursuant to which the Restructured Notes were amended removing Triumph’s ability to convert at the Variable Conversion Price.”

In Layman’s terms, the previous deal allowed Triumph to sell stock at .0025 per share or a 50% discount to the market over the last 20 days.  In either event investors were buying for seven cents while Triumph can sell for a fraction of a penny.  These types of convertibles are massively dilutive to shareholders.  The restructuring caps it at 4.99% of outstanding shares but in our opinion still doesn’t fix the problem.  As they can continue to issue more shares at huge discounts to the market and dilute shareholders.

Looks like whatever was fueling the (System Sensors SSYO.pk) rally is already out of gas.   Yesterday we issued a cautious write up on the parabolic rise of the stock.  The stock ended up trading down 67% on the day, on about 17 million shares volume.