It takes about five minutes worth of research to find out that Terra Inventions Corp (OTC:TERX
, TERX message board
) is just not worth the risk. Nevertheless, Stock Mister sent out some emails encouraging us to check out the TERX's new website. So we did.
There is a good reason for the new website - TERX have recently changed their name... again. Before December 2012, they were known as Li-Ion Motors Corp., EV Innovations and a host of other names that probably even the directors can't remember. The bosses at TERX will most likely have difficulties recalling how many stock splits were carried out throughout the years, but we're here to tell them: there were 8 (eight) of them.
At this point we were pretty sure where this is going, however, we kept a clear head and we opened their latest quarterly report to check out what's going on financially. Sure enough, the first few pages confirmed our fears and we were presented with one of the worst financial statement we have ever come across. It covers the period before October 31 and it goes like this:
- cash: $44
- current assets: $4 thousand
- current liabilities: $2 million
- no revenue
- net loss: $39 thousand
It doesn't stop there, either. Shareholders have been crushed numerous times throughout the years with the aforementioned splits, changes to the number of authorized shares as well as converting millions of dollars of debt into common stock.
A further research also shows that TERX were involved in a scandal relating to a competition called X Prize, a race where the most energy efficient car takes the trophy. They supposedly won it, but after the race was over, some allegations arose resulting in TERX getting nothing out of the $2.5 million award. Of course, TERX are reluctant to talk about the farce, but in their financial statement they say that because of the problems, they were forced to pay $10 thousand per month to a company called Fine Mobile for a period of 8 months. Predictably, they couldn't do it, which resulted in the county sheriff visiting TERX's offices on July 2, 2012 and seizing the building as well as all the remaining assets.
At this point you are probably wondering: "Why in the world would Stock Mister bother to write a whole email about TERX when all this information is available with just a few clicks of the mouse?". We have the answer: they have received $15 thousand in compensation from a third party called ALG Financial, LLC. Just a couple of weeks ago TERX filed an 8-K report in which they disclosed issuance of shares in conversion to some debt they had to pay off. One of the loans was from no other than ALG Financial which means that ALG now have 1,850,000 shares of common stock to play with. You'd probably know where this is going by now, but just to make sure that you understand what we mean: if they were to sell all these shares at yesterday's closing price, they would make a total of $536,485. This is the sum with Stock Mister's compensation taken out and only if the price doesn't go up. We're pretty sure that the people behind ALG Financial will keep both eyes on the way TERX performs today.
To wrap it up, we would like to present you with one of Stock Mister's "monster moves" from not that long ago. We are speaking about ITonis Inc (PINK:ITNS), who were featured in an email from Stock Mister that hit the mailboxes on January 30. You can see how catastrophic the results were the day after that. Having in mind all the facts listed above, we reckon that a similar faith is awaiting TERX, so we would urge you to be extremely careful when making your decision.