Kabe Exploration Inc (PINK:KABX) and TheLightningPicks Dig Deep
And the next small cap company sitting on top of millions of dollars worth of natural resources is… Kabe Exploration Inc (PINK:KABX). The natural resource in question is crude oil this time, but that wasn’t always the case with KABX.
They were incorporated back in 2005 when they set out to dig for gold, silver, copper and other valuable metals. After three years of going nowhere, they stopped this business and, according to their latest financial report, which covers the third quarter of 2012, they are seeking new business opportunities. It would seem that they have found one and they are now, reportedly, in the oil exploration business. They have apparently obtained rights to explore some wells in Kansas, and they are eager to tell us how the reserve in which their wells are located has oil spurring out of every nook and cranny.
There’s nothing wrong about that, but it’s one thing having the rights to explore a well, and it’s a whole different matter actually doing the exploration and pumping the black gold out of the ground. KABX say it’s only a matter of time before all this starts, but we’re not so sure. For one, they don’t have the money to even start transporting the workers to the site. If you doubt our words, you can see the most important figures in their financial statement below:
- cash: $663
- total assets: $663
- current liabilities: $114 thousand
- no revenue since inception
- net loss since inception: $396 thousand
“Fear not”, say KABX. According to one of their latest press releases, they have hired a company called Fortune Oil & Gas, Inc. (PINK:FOGC). According to the news, FOCG is a company with loads of experience in the oil and gas exploration market and they have a team of highly skilled managers that will make the extraction of oil as efficient as possible, which in turn, would maximize the profits for KABX. We wondered, who will finance the whole operation, and how Kabe will pay Fortune for the invaluable services but, but alas, our questions remain unanswered.
Still, FOGC is a publicly traded company, and we decided to do a quick check-up on their financial situation. Unfortunately, we were not able to find anything up-to-date, as FOGC are a non-reporting company and the last filing we could find was dated March 2011. In case you are wondering what they looked like back then, we can tell you that they had a total of $21 in the bank and no revenue since inception. There is the possibility that things might have changed since then, but looking at FOGC‘s chart for the last three years, we doubt it. In addition to this, despite the wretched financials, they were promoted back December 2011 and they have been anchored to the bottom of the chart ever since.
Speaking of promotions, one of the newsletters creating the hype around KABX is TheLightningPicks. We are quite familiar with them and their supposedly “winning plays”. One of their picks was BITZIO INC (PINK:BTZO), for which an advertisement campaign ran back in November. You can see how badly it ended up.
