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goldminingXpert (28.89)

A Rant plus why GMX hates Cubic Energy and CHNG.ob



August 20, 2008 – Comments (2) | RELATED TICKERS: LNG , UNG

Directly lifted from my forthcoming pitch on QBC (QBIK.ob)... I sent a request for them to update the ticker as the stock has moved to the AMEX...


"Let this be a note for the future. When I hit #1 here in the future and people look back on my picks I will be criticized for picking .ob stocks. The thing is, a lot of bulletin board stocks I pick on have many stars. This piece of refuse for instance has 3 caps stars with 55 suckers (scratch that, fools) calling outperform and only 4 enlightened bears on this nearly revenueless stock that is up 400%. While I did reach the top by going after OB stocks, I'd note that stocks like Cubic Energy are good at luring in amateurs... I'm here to warn them. Eventually this stock will hit $0.00 be delisted and people will say, well that was an easy pick, but no, I'm going against the (totally clueless) tide here. I'm not just mindlessly dogpiling somebody else's pick.

Rant off... why do I hate this stock? 3 cents a share of revenue and 10 cents a share of losses, along with a book value of 13 cents a share. Yet there is a market cap upwards of $200 million for this? Did I mention that Nat Gas lost half its value this summer-- and that is what Cubic supposedly is searching for?

Final note: Formerly QBIK.ob, this name got "promoted" to the AMEX under symbol QBC, where instead of bulletin board shenangians, you get crooked Market Makers. Anyway, when the shares trade back under a buck and their auditors send them a going concern and they end up back on the bulletin board, people are going to say I didn't earn these points. This message is my defense to their claims."

People like Antironchapmanjr really iritate me. I serve, and other chronic redthumbers like Tastylunch and TMFbent help sniff out terrible companies that otherwise steal the money of clueless speculators. No reason why some pump and dumper should steal a novice's money cause they got lured by a snazzy flier or a cool economically unfeasable idea (looking at you LBAS.ob)

There's companies that are shady or have little info out such as CHNG.ob which mysteriously get 5-star ratings from CAPS. This is a virtually unregulated little Chinese company that enjoys putting out unaudited financials and has no press coverage over here. 254 all star-outeperforms to 9... I assume some of the 1243 bulls on this stock here have bought, and gotten reamed as it has fallen 50% since November. The bulletin board is a crooked place, you need unwavering truth-seekers such as myself and everydayinvestor to tell you the truth on the .OBs even when the herd loves them. Embrace the red thumb, we save you money by showing you when the pump & dumpers are trying to fleece you. 

By the way, CHNG.ob is doomed regardless of whether their financials are accurate or cooked. Taken a look at the price of Nat gas and oil recently? Think China needs LNG fuel all over the place? Not anymore. LNG is a joke... especially the ticker symbol LNG (Cheniere Energy) but that's a different tale for a different blog.

2 Comments – Post Your Own

#1) On August 20, 2008 at 11:12 AM, thepull (98.66) wrote:

I'm happy to mindlessly dogpile on your picks every on in awhile.

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#2) On August 20, 2008 at 10:44 PM, Tastylunch (28.76) wrote:

Cubic is a complete scam, I've thought about redthumbing them before as I've read their junky Press releases before, but I thought the scam was too well done to get a quick scalp.

After they get listed on the AMX I bet they plunge pretty quickly afterward

CHNG.ob is also garbage imo, too many shady characters in management.They fooled me initially back several months agao, but then I did some dd before i was going to make my pick and got scared off.

I may not be the most thorough analyzer out theer on CAPS, but it's amazing to me how few people actually look at the company beyond the reported numbers on CAPS. ("The P/E is cheap!" ec)

I agree with you GMX as usual.

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