KGRI: Caveat Emptor!
So we're trying to figure out what Kiley Group (KGRI) does to justify a market cap that is currently a minimum of $30 million
The crooked tout, The Stock Psycho at PennyStockAlerts.com, proudly exclaimed in Tuesday night's email to his subscribers, that KGRI was up 14% in Tuesday trading. No kidding? The stock's bid - ask all day long was .0007 - .0008. It closed at the ask.
Guess what: .0008 is 14% higher than .0007. Funny how when a piece of garbage is trading at such a low price, 1/100th of a penny is 14%. You, Psycho, are scum. Hey by the way, the difference between .0001 and .0002 is 100%. Make sure when you tout your next crap that you announce that as a double.
Anyway, just what does this company with at least a $30 million market cap do? Almost a year ago, KGRI announced that they were hired to help Buff Water, another in a series of 100s of no-name bottled water companies, go public by way of a public offering. How is this news? What could KGRI generate in fees for this? $100K? Maybe not even that. Then after not hearing from the company for 9 months, they announced on June 9th that they were actually going to acquire Buff Water. We figure that KGRI and Buff Water came to two revelations here. One, KGRI was never going to be able to attract buyers for their worthless stock with a purported line of business involving taking other companies public on the over the counter market. Two, Buff Water obviously didn't have enough going for them on their own because it doesn't take nine months for a legitimate company with a real line of business nine months to go public. It did take that long for the two companies to realize that together, they might just be able to pull off a Pump & Dump. So since KGRI couldn't take Buff Water public, they decided to acquire them instead and maybe sell a little stock along the way. And while the company claims to be distributing bottled water to 300 outlets, there is no word as to how much, if any, revenue has been generated.
Oh and if you don't know this already, the penny markets are littered with so-called water companies who have conducted Pump & Dump schemes and then gone out of business.
Then, with KGRI in a takeover frenzy, they announced on July 6, in a caveat filled press release, that have "entered into negotiations" (caveat #1) with an unnamed (caveat #2) privately held agricultural distributor in an unidentified relationship (caveat #3). We love this next sentence:
"Currently, the potential distributor is producing revenues of approx $500,000 per year."
Alright, never mind the big whoop for the $500K revenues of which KGRI would get $100K (that certainly is worth of a $30 million market cap, isn't it). But what does "potential distributor" (caveat #4) mean? Are they a distributor or are they not? If not, then what the heck is KGRI negotiating with?
Of course it won't exceed (caveat #5) the whopping sum of $250K. KGRI doesn't even have that."The size of the capital investment [by KGRI] is yet to be determined, but would not exceed more than $250,000."
"Revenues are projected to increase to 2.5M within 18 to 24 months and 4M within the 5 year term of the joint venture based on current contracts that company already holds."Projected revenues [caveat #6] of $2.5 M and then $4 M over what period of time? [caveat #7] Monthly? Annually? Over the lifetime of the company? And based on what "current contracts" [caveat #8] that company (what company?) already holds. We note that 20% of $4 million is $200,000, another big whoop for a company with a $30 million market cap.
8 caveats in one announcement. Announcements Full of Caveats is item number 16 in "16 Ways to Recognize a Pump & Dump" from our article "It's A Pump & Dump".
And now to coincide with today's start at an attempted Pump & Dump, the company announces an agreement by Buff Water with a distributor. So? No word on how much water they expect to sell or if they've ever sold any. But that doesn't matter. The insiders just want to sell some KGRI stock.
We're awarding today's PIMP award, given to the tout who exhibits the most disgusting display of stock prostitution, once again to EastwindResearch.com this time for utter laziness in disseminating another email fruitlessly attempting to tout AURI. Tuesday night's email is the exact duplicate of an email Eastwind issued on August 3, 2011, the last time they "Brought us back to AURI". It didn't work very well last time, but for some reason this time they think it will do better. The email, which essentially calls anybody not invested in the stock, a fool, regurgitates over and over again, a bunch of claims that we've already refuted with real analysis in our advisory. The tout's claims have not done anything to whet the public's appetite for AURI stock, which has traded sideways in disinterested volume for weeks. James Connelly, the self-professed Stock Prophet, hasn't done any better chewing the same cud, so it's hard to imagine why anybody would think Eastwind will now. Maybe it's time for Eastwind to turn down the rhetoric a notch and try a softer, more believable sales pitch. But then again, the stock is way over-priced anyway, so it probably wouldn't make a difference.
Now don't misunderstand, we are not saying that AURI is not a real company. We completely believe that it is a real company, unlike most of its Pump & Dump brethren. We just don't think it's all that. And it certainly doesn't justify a $50 million+ market cap.
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Since Our Last Alert on August 16, 2011
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