Kodiak Energy Inc. (OTCMKTS:KDKN) Pumped out of Oblivion
Quality OTC, Elite OTC, VIP Penny Stocks – these are the names of some of the newsletters that decided to start the week off by pumping Kodiak Energy Inc. (OTCMKTS:KDKN). If the disclaimers are to be believed, they did it for the fun of it, and not in exchange for money, but nevertheless, they had to write something in the emails that could persuade investors to take a punt. We can only imagine how hard they had to think about it. In the end, all they managed to come up with was… technical indicators.
We’ve discussed at some considerable length how far-fetched the pumpers’ claims are sometimes. Doing a technical analysis on a stock that has logged a dollar volume of just $2,000 over the last month, however, is bordering on the ridiculous.
Despite this, investors seemed willing to listen to the promoters’ discussion of technical indicators which means that after just six and a half hours of trading, the stock racked up a dollar volume of about $140 thousand. At first glance, the daily gains of 280% will also lead you to believe that KDKN has truly outperformed itself, but in reality, things are a tiny bit different.
The ticker actually opened the session with a gap up at $0.0025 and it started climbing almost immediately. About forty minutes later, it found itself at a whopping $0.036 per share, but the people who bought at that level are probably in a bit of a mood at the moment because minutes after hitting an intraday high, KDKN lost its footing and it plummeted down to a close of $0.008 per share.
The wild swings experienced during the day clearly show that whatever the pumpers say, KDKN‘s gains were caused not by technical indicators, but by pure and simple hype. To be fair, however, Quality OTC and their colleagues didn’t have much else to work with.
If you open the company’s profile at the OTC Markets, you’ll see a Stop sign and if you check out the filings, you’ll realize why it has been placed there. The latest 10-Q covers the third quarter of 2011 and there hasn’t been any up-to-date information since then.
Some of you will probably open the report despite its age and they’ll see that KDKN was actually a working company some time ago. Indeed it was:
- cash: $32 thousand
- current assets: $877 thousand
- current liabilities: $8.4 million
- quarterly revenue: $706 thousand
- quarterly net loss: $1.8 million
The financials are not exactly perfect, but the more forward-looking investors might reckon that things have changed over the prolonged period of silence. Unfortunately, there’s not much to suggest that this is the case. In fact, there’s not much to suggest that KDKN still exists at all. The company website, for example, is as dead as a dodo and we were unable to find any press releases.
That, funnily enough, brings us to the SEC. On October 16, the Commission rightfully suspended Life Care Medical Devices Ltd (OTCMKTS:LCMD) and New Leaf Brands Inc (OTCMKTS:NLEF“>NLEF) because the two companies are delinquent in their filings. LCMD hasn’t filed any reports for two years and eight months while NLEF“>NLEF‘s latest 10-Q came out a little over three years ago. KDKN stopped filing almost four years ago, and yet, you can trade its stock. More worryingly, you can lose a fair chunk of money on it which is something the regulators should probably think about.
