Pumpers Won’t Leave Kabe Exploration Inc (PINK:KABX) Alone

It all started back in January. Emails from a host of promoters started flooding the inboxes telling investors how great a company Kabe Exploration Inc (PINK:KABX) is. The excitement nudged the price a bit in an upward direction. We noticed the move, checked on KABX and we predicted that the trend won’t last long. We turned out to be right and not long after it reached around $0.10 per share the price went down and the ticker now hovers around $0.02.

Pumpers are unperturbed and they are taking advantage of every single forward-looking statement that comes out of KABX‘s headquarters to send yet another email luring more and more investors into thinking that they have a solid company in front of them. It wouldn’t have been so bad if, for example, KABX had issued their next financial statement that could give us some hope, but that’s not the case. The latest report is the one covering the third quarter of 2012 and in it you will find that they have:

• cash: $663
• no other assets
• no revenue since inception
• net loss for Q3 of 2012: $44 thousand

While they are not in so much of a hurry to publish their financial statement, KABX come up with new headlines every now and then, and they all seem mightily exciting.

First, there was a press-release on February 8 stating that they have hired a new geological expert, who will help them with the evaluation of their future properties. Then, a couple of days ago KABX went public once again this time saying that they have signed a Letter of Intent to acquire some new mineral leases.

Both press-releases were accompanied by emails from OrbitStocks and Information Solutions Group, LLC who are desperate to tell us about the bright future of KABX while keeping quiet about the financial woes. That’s something that we’re quite used to but we still have to ask ourselves: “Is it only the pumpers’ fault?”. Well, they do receive a compensation by third parties and those third parties are the ones who are really interested in pumping the stock. The companies and people financing the promotions are usually listed in the fine-print disclaimer at the end of each email so we broke out the magnifying glasses and started reading.

We found out that a lot of the pumpers were paid by a company called Chapman Industries LLC. “Who stands behind Chapman Industries and why would they want to pump KABX?” is the next logical question.

Luckily, we have the answer. This link will lead you to one of KABX‘s filings from 2008. It’s a SC-13D form and there are two reporting entities – Chapman Industries LLC and the current CEO, Mr. Erik Ulsteen. As you might have guessed both Chapman Industries and Mr. Ulsteen have quite a lot of shares ready to be sold at any time, but if you scroll a bit further down you will see that Mr. Ulsteen is actually the sole owner of Chapman Industries LLC. As it turns out, the company CEO, the person who should be taking care of the KABX‘s shareholders, is desperately trying to promote the stock.

We will leave it up to you to decide whether this is the way to run a company.