Georgi Kamburov

Kleangas Energy Technologies, Inc. (OTCMKTS:KGET) Surges On New Pellet Order

by Georgi Kamburov January 30, 2014

Investors are right to be cautious when dealing with the company. As we said yesterday they announced a second order for their pellets that was even more bombastic than the first one. Apparently their subsidiary Green Day Technologies has received a request for $100 million worth of pellets but due to the inability of KGET to produce the needed quantities they will initially try to fulfill "just" $20 million of the order. This will supposedly bring the expected revenues for 2014 to somewhere between $30 million and $40 million. Well, that certainly explains the renewed enthusiasm towards the stock.

Even we would be impressed if the news article contained at least some concrete information. The name of the buyer is not mentioned and neither is his country of origin. For now no 8-K filings about both orders have been filed leaving investors to rely solely on the words of the company itself.

Prior to the acquisition of Green Day the financial state of the company was more than desperate. KGET finished the quarter ending September 30 with exactly:

$29 cash and total assets
$469 734 total current liabilities
ZERO revenues
$36 750 net loss

Since the filing of the report no new sources of funds have been announced. Investors will also have to keep in mind that seed shareholders of the company hold around 316 million extremely cheap shares which were bought for the total sum of $25 000. Even if they now own just a portion of those shares they still stand to gain considerable profits at the current inflated prices.  

4GFOXchart.pngThere are numerous examples of pennystock companies claiming millions upon millions of dollars in contracts that in the end never materialized. Ultimately it is up to you to determine what KGET's real potential is but before you jump in based solely on the hype be sure to do your own research and never invest unaffordable sums.

Yesterday the pumped stock of Gray Fox Petroleum Corp. (OTCMKTS:GFOX) continued to wipe out its gains after it dropped another 17% and closed at $1.50. There is still a lot of room for corrections before the company reaches its pre-pump prices of below a dollar.

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