Novagen Solar Inc (PINK:NOVZ) Are Ready to Invent the Future
It’s a constant debate – internal combustion vs. electric motors. The defenders of electric engines argue that gas powered cars are way too inefficient and that they harm the environment a lot. People who like the sound of pistons moving up and down powered by small explosions, on the other hand, say that electricity is worthless when it comes to powering anything bigger than a vacuum cleaner. It’s unlikely that this argument will ever be settled, but Novagen Solar Inc (PINK:NOVZ) say that they are able to provide us with something of a compromise.
They claim that they are able to turn things around and give us an internal combustion power plant that is able to propel our cars and motor bikes in the way that we’re used to, but they are going to make it much more efficient and a lot more forgiving on the polar bears. Pumpers The Bird Gang Stocks, who received $5,000 for the promotion, are also sending some emails in an attempt to give some credibility to NOVZ‘s claims. Should they be bothered, though? More importantly, should you be bothered?
NOVZ started off as a mineral exploration company and after doing nothing for a while, there was a change in control and they began their eco-friendly engines business back in January 2012. A year and a bit later, they have not managed to raise the funds needed to make their dreams come true and their latest financial report states that they will need to get their hands on more than $3 million in order to proceed with their business plan for the next twelve months. Here’s the rest of the figures as of September 30, 2012:
- cash: $108 thousand
- current assets: $297 thousand
- current liabilities: $564 thousand
- quarterly revenue: $3,355
- quarterly net loss: $213 thousand
If we have to look at it from a more positive point of view, we might say that we have seen companies with far worse financial statements and that NOVZ are still a relatively new venture that needs a bit more time to get the ball rolling. Still, we somehow doubt that this will ever happen and there are some good reasons for our pessimism.
Experienced investors know that a research on a company doesn’t involve only reading through the figures in the latest report. When checking out businesses that nobody’s ever heard of, it’s good practice to question just about anything that you can read about them in emails, press-releases or on their website. That’s where we found some interesting information.
On their website there is a short biography of NOVZ‘s current CEO and president. In it, we read that Mr. Micheal P. Nugent is a person with years of experience in private and public companies and we also see that he is a marvelous inventor and engineer. We’re not sure if it’s a typo or if Mr. Nugent’s name has been intentionally mistaken in every single NOVZ filing, but we found that his name is actually Michael Peter Nugent.
He is indeed part of several publicly traded companies. On of them is Roadships Holdings Inc (PINK:RDSH), a penny stock venture dealing with sea transportation, who got pumped back in April 2012. They gained some impressive numbers during the promotion and, shortly after that, they sank deep losing 35% in just one trading session. They have been losing ground ever since and while during the pump they reached nearly $0.08 per share, they are now traded at just $0.005.
In one of RDHS’ filings we found the full portfolio on Mr. Nugent’s (in there he is referred to Michael P. Nugent) companies. A further research leads to this article in an Australian newspaper. If you are interested in investing in NOVZ, it’ll definitely make for an interesting read, and if we have to summarize it, we would just say that there are some extremely serious allegations against Mr. Nugent for deceiving investors through the myriad of companies that he has been part of.
