CEO Pumps Cleantech Transit Inc (OTCMKTS:CLNO) Once Again
Many things could be said about Cleantech Transit Inc (OTCMKTS:CLNO) but unfortunately we managed to find absolutely nothing positive. We can see so many problems around the company that we will need about ten articles to list most of them and we still won’t be able to paint the whole picture. There is one thing, however, that is bothering us most of all.
The fact that we can’t understand what exactly they’re dealing with isn’t it. The number of press releases about acquisitions of different interests or companies is huge, and we’re quite sure that even the long-term shareholders aren’t able to point out specifically what sort of business CLNO are operating in at the moment. They have been working as a gold exploration company, they have been developing cleaner ways to produce energy. At one point they said that they have come up with a unique process for gasification from wood. At the same time they supposedly have an e-commerce platform and according to the latest press release from Thursday, they are about to acquire a company called Discovery Carbon Environmental Securities – a corporation that provides financial backing to “green” start-up companies all over the world. It really is rather confusing, but that’s not our biggest problem.
Neither is the fact that despite all those business ventures, they haven’t been able to generate a single penny in revenue. Nor is, for that matter, the fact that the rest of CLNO‘s financial statement looks terrifying. Here are the figures as of January 31:
- cash: $838
- total assets: $838
- current liabilities: $105 thousand
- quarterly net loss: $66 thousand
The colossal dilution is not our biggest concern, either. The constant lack of cash and the unprofitable acquisitions that sounded so good on paper have caused CLNO to issue around 30 million shares of common stock during the three months reported in the latest 10-Q and the number of issued shares for the twelve months before the end of January is even more horrific – 186 million. As a result the ticker has lost around 57% of its value in just a year, but that’s not the biggest problem. And neither is the fact that their corporate headquarters appears to be a luxury home in Las Vegas (very appropriate for a company with total assets amounting to less than $1,000).
None of the things listed above urged us to write this article alerting you to be very careful when trading CLNO‘s shares.
The biggest worry that we can see by far is the people running the company, Mr. Kenneth Bosket (CEO) and Mr. Lowell Holden (CFO). More specifically, it bothers us that they are at the helm of another company – Crown Equity Holdings Inc (OTCMKTS:CRWE). If you just do a quick research on CRWE, you will probably think that they are simply an internet marketing venture that provides regular advertising services. The truth is, they own quite a lot of stock promoters like PennyOmega, Penny To Buck and Double in Stocks among others. If you look through our database, you will see that these newsletters have been touting CLNO heavily during the last couple of months and although no compensation has been disclosed, a quick look through CRWE‘s financial reports show that tens of millions of newly issued freely tradable common CLNO shares have been transferred to CRWE which, in effect, means that they are controlled by Mr. Bosket and Mr. Holden.
What are they going to do with all that stock? Well, they can do just about anything, but experience has taught us that promotional campaigns for small cap companies often happen for a reason and that there are usually people waiting for the right price so that they can sell their shares and make a profit. The years that we’ve spent covering penny stocks have also taught us never to trust promotional newsletters. That’s why further due diligence and in-depth research is absolutely critical before jumping in on CLNO.
