Kleangas Energy Technologies, Inc. (OTCMKTS:KGET) Drops by a Third
Back in August and September the producer of alternative clean energy Kleangas Energy Technologies, Inc. (OTCMKTS:KGET) was the target of a quite big pump campaign. Although more than 50 email alerts were sent in an attempt to create some sort of artificial hype the increased attention towards the stock only caused it to gradually slide down. At the start of December all that changed though.
Now without any involvement from the pump newsletters the company has managed to surge from $0.0007 to just shy of a cent during Wednesday’s session. Reaching such high prices may have prompted some investors to start taking profits while they can resulting in a massive 30% crash on the very next day that brought the stock back to $0.0056. Throughout the day nearly the exact same amount of shares got traded – 42 million as opposed to 45 million from the previous session.
KGET tried to sustain its positive movement by issuing two 8-k forms but they contained no new information and remained mostly ignored by traders. The reason for the drastic change in sentiment towards the stock shown this month can be largely attributed to the upcoming acquisition of Green Day Technologies, Inc. KGET is going to acquire the other company through a share exchange agreement where 1 common share of Green day will be traded for 17 common shares of KGET. The closing of the deal should happen in the next 9 days so more PR articles should be expected.
And KGET really need to boost their operations if they want to avoid a fall back to triple zeroes. The financial state of the company at the end of September was dismal. According to the quarterly report for the period they had exactly:
• $29 cash and total assets!!!
• $469,734 current liabilities
• No revenues
• $36,750 net quarterly loss
• $469,734 current liabilities
• No revenues
• $36,750 net quarterly loss
In order to mitigate the dilution caused by the expected acquisition the management of the company decided to return to the treasury 
the remaining 1.05 billion shares that were issued as part of past merger. This reduced the amount of outstanding shares to 314 million.
the remaining 1.05 billion shares that were issued as part of past merger. This reduced the amount of outstanding shares to 314 million. Any investment in the company needs to be preceded by doing some extensive due diligence. Their financial results are quite disturbing and the recent share prices are sustained only by hype.
The same is also true for the stock of Tiger Oil and Energy, Inc. (OTCMKTS:TGRO). They are being touted by a pump with a budget of no less than $2.5 million making them an even riskier choice. The possibility of a suspension should also be considered as just last Friday the SEC intervened and halted the pumped stock of Makism 3D Corp (OTCBB:MDDD).
