Kleangas Energy Technologies, Inc. (OTCMKTS:KGET) Bubbles Over

Kleangas Energy Technologies, Inc. (OTCMKTS:KGET) is not having any luck with its new appearance and ticker. As of February this year, the new company moved from bad to worse, sinking and coasting along at triple-zero levels for months. Now, KGET is making a small run, emerging to double-zero levels. The ticker grew by more than 90% to $0.0042, a not unusual trick for those underpriced shares. Dollar volumes were above $261,000, a large amount of the company’s total cap, which is now about $1.32 million.

KGET is a textbook case- the newcomer that tries to develop clean energy technologies. This may certainly sound encouraging on the surface, but KGET has also tried other hot and promising businesses, with little success. Previously, KGET has posed as a mining company and a capital firm.

Added to this are more than 314 million shares outstanding. So far, we have not covered KGET in its new incarnation, and the immediate expectation is that the ticker will retrace to lower positions very quickly. There are also 3 billion authorized shares, and recently, 2.1 billion shares were issued to KNGS Acquisition, Inc., making the firm a controlling shareholder in the company.

The pieces of the puzzle start to fall together, as KGET also went through a period of promotion in September. The mailers have been silent for a while, but the company was prepared with developments and PR messages, which boosted the publicity and led to the buying interest in the past days. But the news were mostly negative, as now KGET turns out to be a vehicle company for large insider owners.

The ambitions of KGET to solve the world’s energy and pollution problems are mismatched to its financials:

• $29 cash

• $469,734 current liabilities

• No revenues

• $36,750 net quarterly loss

It seems like the only earnings KGET can achieve are through a boosted position on the OTC markets.

KGET is a minor addition to the trend for showing off oil and gas penny stocks as sure bets for success. Several of those burned out in the past days.

One of those was First Titan, Corp. (OTCBB:FTTN), a seemingly solid, higher-tier company. FTTN reached a peak just below $5, but wiped out more than 75% of its value on short selling and general unloading.

The other appealing target was Tiger Oil and Energy, Inc. (OTCMKTS:TGRO), which is still keeping the higher levels, though days in the red are multiplying, chipping away at the price around the 55-cent levels.