500 Billion Reasons (or more) to Avoid KGRI
also: An Eerie AURI Quarter
also: An Eerie AURI Quarter
We tried to tell everybody, but not enough people were listening. A more blatant Pump & Dump than KGRI rarely exists. In recent weeks, it may have only been topped, in terms of obviousness, by POTG. The stock ticked up .0001 at the open on Wednesday and then head straight south, shedding half of it's share price for most of the day. Do the insiders care? Of course not! They are in the printing business! Share certificates, that is.
We tried to explain the lack of value in this company with fundamentals within yesterday's alert. We analyzed all of their phony business dealings including the bottled water deal with the guessing game revenues and the maybe agricultural deal with a side order of 8 caveats. And still almost 307,000,000 shares were traded, most of which, we promise you, were sales by insiders.
Even if one didn't want to take our word for it, anybody who would have done just 5 minutes worth of due diligence would have figured this out. This is a company with over 3 billion shares outstanding and that is after six, count 'em six reverse splits in the last 4 years. In one 7 month period during 2009 - 2010, there were four reverse splits, which collectively rolled back the stock 500 billion to one. Yes, that's billion with a "b" over just seven months!. All told, the 6 reverse splits effected a roll back of, now get this 12.5 quadrillion to one. But we think that the reverse splits showed sound management decision making. After all had there been no roll backs in the last four years, there would now be almost 40 septillion shares of KGRI outstanding. That's a "40" with 24 zeros after it.
How does FINRA and the SEC allow this stuff to happen? And come on! How do investors allow this to happen? Do people buying this stock need a baseball bat to the head? There is no way to make money on this stock unless you have the time, patience and stomach to watch the computer to flip it for 100ths of a penny. Life is just too short. And it's too late now because it's heading back to .0001 where it belongs and we'd bet it won't long before the next roll back comes. And then the printing presses will start churning paper again.
Incidentally, when we say that the insiders don't care what price they get for the stock, we ain't kidding. 500 billion shares sold at $.0001, still nets the sellers $5 million. 40 septillion shares at .0001.....well you get the idea. Or do you?
<sigh> Moving on....
StockEgg.com is taking another swipe at pimping AURI, as it is their turn in the rotation of touts who have been trying to convince the street what a great investment this. We've maintained the position that it is a horrible investment given their sales, their cash position and the market cap of their stock.
This time though, AURI didn't use their tout to spread despicable misinformation. On this occasion, the company spread the manure itself. In reporting 2nd quarter earnings yesterday, the company tried to BS its way out of a 23%, year over year, revenue decline by claiming that it shipped the majority of its spring merchandise during the first quarter. Judges? Buzzzzzzzzzzzzzzzzzzzzz! I'm sorry, but the judges have rejected that excuse. Why? Well when AURI announced first quarter earnings last May, they trumpeted a 118% year over year increase for the quarter. Did they explain why the increase was so big? NO! Of course not! They needed that illusion in order to have something for the touts to hang their hats on. Of course now the touts, starting with StockEgg.com, are "forgetting" to tell the public about the 23% decline in revenues. So sorry AURI, but you can't double dip by showing off the first quarter and then using it as an excuse for the second quarter. Let's call a spade a spade. Revenues are pathetic and certainly too weak to support a $50 million market cap, just like we've been tell our readers for weeks. Maybe you should have saved the 100s of thousands of dollars spent on stock promotion and used it on business development.
We think you may see the insiders start whacking the bids because they certainly don't have enough customers for their stock at about 60 cents/share. The depressing revenues may give them an out too, as they would be likely to tell shareholders that a sell off was a reaction to the decrease in revenues.
Once again, 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. If you don't see that now, then you might as well unsubscribe from this service because there's just no telling you anything.
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Since Our Last Alert on August 17, 2011
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