The obvious answers would be “You shouldn’t!”. There are a lot of folks out there trying to prove the stock is still capable of providing gains and breaking resistance after resistance. People should understand though, the only factors driving this thing are press releases and nothing tangible or long term is happening yet.

Even if the drilling will begin on April as it was promised, if no news come out before that, the chances of this stock tanking are really high. There are good reasons why Indocan (PINK:IDCN) trades for a fraction of a penny and putting your hopes high on this one is nothing more than gambling.

Trying to play the possible April drilling start is just as good as a gamble as anything else. The company can easily say their timing was bad, their plan had flaws, they need more testing to do or anything between those lines. Catching these price rallies is just a random thing based on press releases and you never which way it will go.

Cascadia Investments, Inc. (CDIV.PK) – Profile

I was impressed by the information published from my colleagues about Cascadia Investments, Inc. and I decided to find out more details about the company, the business – products, markets, prospects for future growth, financial status.
Similar to the each investor thinking before buying shares my first step was to visit CDIV’s webpage in order to receive general information about the business and products it offers. As a response to my interest I have found only the short information that CascadiaInteractive.com is a site designed to list all interactive properties owned and controlled by Cascadia Investments, Inc. . Following the link I found only information about the last events, related to the company. What the primary business is, history what the products are… there were no information. The info published about the main business of the company in Yahoo was that Cascadia Investments, Inc. operates as a real estate development company in the United States with a focus on acquiring and renovating under-valued properties for lease and resale, as well as purchasing undeveloped real estate for the purpose of residential development and sale. From the company’s press releases I found that CDIV is an internet development company operating in the Pacific Northwest. The company’s principal objective is to create equity and long-term earnings growth through the acquisition and development of cutting edge internet properties.
Here rises the question how it will be done if at present the company’s website do not gives even bite of information about what is it and where will go?

Cascadia Investments, Inc. (CDIV.PK) – Products and development

The principal objective of the company, pushed me to continue my research following CDIV’s development. I decided to take a look at the intellectual property of the company before to make a preview of financial statements. Results were ridicules.

The personalized greeting Websites:

The picture below presents the comparison between the acquired www.mypersonalringtones.com and zedge.net. As you can see the CDIV’s webpage is rounding around the zero with no trends of increase.

The website www.religiousgrams.com, as seen in the picture below could not be analyzed due to the simple fact that sites ranked with less than 100 000 page views per day are not ranked. The question is how and when the company will go in to the ranks?

Custom Flash Games: At the beginning of this year CDIV.PK announced that it has acquired a majority stake in CustomFlashGames.com. CustomFlashGames.com creates ready-to-launch Flash games for clients as well as multiple in-house projects. This was the reason to make a comparison between the http://customflashgames.com/  and zynga.com. The chart clearly shows the interest of the Internet users of both sites.

Again, the question rises, when and how Cascadia Investments, Inc. will have earnings from this Internet property?

Doing a little research on Zevotek Stock (ZVTK.PK) aka (PINK:ZVTK) today, and I couldn’t help but notice that the company’s address didn’t sound like a real office.  So I decided to look it up on Google and this is what I found.  Could this be there corporate headquarters.

I am still trying to figure out where the company operates.  Probably not in the kitchen because they would get food all over there documents.  It must be they are operating out of the closet or the basement.

And guess what!  The house is also for sale, and apparently not doing so well in the market.  According to Streeteasy the house has been on the market for 6 months and they lowered the asking price three times.

So what happens to shareholders if the basement gets flooded?

.0001 Penny Stocks and why to avoid them:

We are starting a new column where we talk about stocks at the lowest price they can possibly be.  Stocks for .0001 for this price you can get one million shares for $100 but are they really cheap?  Our opinion is no and these are generally the worst types of investments.  Here on this section we will explain the pitfalls of investing in

Green Oasis (PINK:GRNO) opened down 20% this morning and has since been recovering.  Our good friend Gaetano made write up today on GRNO Stock (GRNO.pk).  A few of the heavy commenters on IHUB seem to be suggesting a huge short position that may be squeezed.  We will do a follow up on this one later.

Recognized as one of the most messed up companies on the market, SPNG.PK can be seen as potential buy only by people with high risk tolerance and gambling addicts. On forums, people were hoping (and probably still are) for a short squeeze and a price run up. The keyword is hopping.

People stick to SpongeTech because they have a real product. A real product and crazy management who drive the company sideways. If you have an urge to gamble some money without visiting a casino, time yourself and go ahead cause you’ll get a change when these guy’s release some spacecraft cleaning sponge targeting NASA.

How did IDCN Stock (IDCN.pk) obscure penny stock trade almost 1 Billion Shares without ever releasing any financial statements?

Usually this is done through Hype disguised as insider information campaigns, and it certainly isn’t through investors reading reliable information and then making informed decisions.  On the Pink Sheets Website they have issued a harsh warning to investors that dissemination of information on this stock may be a criminal activity as the company has never come forth with financials.  Still this hasn’t stopped the stock from trading higher on volume approaching 1 billion shares yesterday.

IHUB IDCN - The source of the promotions?

Searching the IDCN Message Board we were able to find little to go on other than signing deals with stock promoters and making Letter of Intent agreements which we fail to see any substance behind.  Most stocks like this end up declining 99% within relatively short periods of time.  Unless more clear information is presented there is no way we would be investing our own money.

Recently there has been a lot of activity surrounding Bonanza Oil and Gas.  The shares have been trading quite actively after they announced some seemingly positive news and had a few research reports issued on them.  The stock has declined over 80% since from it’s February highs.  Our concern with Bonanza is the structure of their convertible notes.  They have made some positive steps to correct this, but a toxic convertible is still a possibility even with the restructuring.

Here is a clause we dug out of a February 9th 8k Filing issued by Bonanza:

“The Restructured Notes were convertible into common stock, at Triumph’s option, at the lesser of (i) $0.0025 or (ii) a 50% discount to the average of the three lowest trading prices of the common stock during the 20 trading day period prior to conversion (the “Variable Conversion Price”). Triumph has agreed to restrict its ability to convert the Restructured Notes and receive shares of common stock such that the number of shares of common stock held by it in the aggregate and its affiliates after such conversion or exercise does not exceed 4.99% of the then issued and outstanding shares of common stock. On January 29, 2010, the Company entered into a Letter Agreement with Triumph pursuant to which the Restructured Notes were amended removing Triumph’s ability to convert at the Variable Conversion Price.”

In Layman’s terms, the previous deal allowed Triumph to sell stock at .0025 per share or a 50% discount to the market over the last 20 days.  In either event investors were buying for seven cents while Triumph can sell for a fraction of a penny.  These types of convertibles are massively dilutive to shareholders.  The restructuring caps it at 4.99% of outstanding shares but in our opinion still doesn’t fix the problem.  As they can continue to issue more shares at huge discounts to the market and dilute shareholders.

Looks like whatever was fueling the (System Sensors SSYO.pk) rally is already out of gas.   Yesterday we issued a cautious write up on the parabolic rise of the stock.  The stock ended up trading down 67% on the day, on about 17 million shares volume.

Neoprobe recently filed an 8-k regarding change of directors.  Our friends over at the 8k filing blog have the full story.

Neoprobe stock has been on quite a run lately from a low of about .40 to recent prices of Nearly $2.  The company has a healthy cash position which is offset by their huge liabilities and negative shareholder equity.  Still investors seem optimistic and have continued to bid prices higher.

The obscure stock of Sensor System Solutions is starting to show some trading activity.   A thread yesterday on Investor’s hub suggested a merger.  Although we suspect another e-mail campaign is behind this activity.

We found some recommendations in an obscure website called BullQuake, but we did not see anything in their disclosure about them being compensated.  We advise extreme caution for anyone considering investing in this situation until the rest of the story is a little more clear.

Recently, I wrote about Social Media Ventures stock being off 30% under a heavy e-mail promotion.  We decided to revisit this story and see how things have developed.  After our article, the stock declined a mere 99.7% roughly speaking.  And is currently trading for a fraction of a penny per share.  But don’t let the low price tag suggest the price is low.  This company does not report financial statements so we have no way of knowing how many shares are currently outstanding and if this reflects a good value.  Read on and we will show you what we can see.

It seems there business may not be doing so well either.  In addition to their stock hitting the bricks, it appears as if their websites aren’t performing well either.  According to Alexa, traffic on their flagship Pet site is off 30% for the month.  Alexa is a media tracking service that is a division of amazon.com.

Maybe Ahead of the bulls was able to sell their 200,000 shares they were paid to recommend this stock before it fell apart?   If that is the case, at least we know somebody is making money.