Just a couple of weeks ago we wrote
about Buzz Stock
's promotion on COUNTY LINE ENERGY CORP (PINK:CYLC
, CYLC message board
). We talked at great length how the company has disclosed no financial information since 2009 and how the only thing that we know about them is that they supposedly bought some oil wells in Canada. We're always a bit leery when it comes to promoted small cap companies. Especially ones that don't publish any financial reports.
We thought, that once CYLC is all hyped up, they will do the right thing and come up with a financial statement of sorts that will make them more trustworthy, at least to a certain extent. After all, when they said that they have acquired some oil wells in Canada, a lot of people started asking how exactly did they do it. Did they pay for them in cash? Did they issue shares, warrants or options?
Instead of publishing an official answer and a financial statement to back it up, they have decided that they are going to enter the news once again. We found a press-release from a company called Capitol Financial Media, who offer a rather interesting service - you can hire them, and they will write press-releases for you in case you can't be bothered to do it yourself.
In the news we read that Capitol Financial Media (CMP) have received a lot of inquiries about the nature of the deal which lead to the acquisition of the new wells and, good folks that they are, CMP are here to answer the question. CYLC apparently have paid for the wells in cash and that there were no shares issued to complete the deal. We feel that this is somehow still not enough to convince us. Where did the money come from? Were they all paid immediately or will they be paid in increments in the future? Is there any additional compensation for the previous owners in case the wells turn out to be extremely profitable?
If history is anything to go by, it's difficult to see how they have managed to raise the money for 640 acres of oil-rich grounds. The last information that they have disclosed dated September 30, 2009, for example tells us that they had a total of:
- cash: $1,995
- current liabilities: $1.8 million
- net loss since inception: $1.1 million
Another thing that is interesting is that we can't find any information on what happened to the oil wells that they apparently had the rights to explore as far back as 2007. Were they successful? Did they even try to start drilling?
Yet another red flag is the fact that there seems to be a number of people complaining all over the Net about a SPAM campaign running for CYLC. We were rather intrigued by this, so we decided to check the Junk folder. Lo and behold, there it was: sent from a person we don't know and with no disclaimer of any sort.
First a paid promotion, and now a SPAM campaign. All the while, CYLC tell us nothing on how they will finance their operations or, for that matter, how they have done it so far. We would advise you to be extremely cautious with this particular one.