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Tastylunch (29.42)

Tasty Trash : Helix Wind (HLXW.OB)

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June 11, 2009 – Comments (19)

I wanted to like this one, I really did, as I like alt-e especially ones with urban applications. I can't vouch for the viability of the tech but they look to me to be a company that's really trying to make it in the Wind business.

That's what makes this so sad.

two weeks ago this Wind Turbine stock traded about 1k shares per day now it's 200k per day and with a pretty massive price increase

Naturally that got me curious, well that and someone spammed me twice. :(

What we have here appears to be a development stage company with probably poor chances. I can't speak for their Tech, but their finances are woefully inadequate for what they are trying to do.

They have around 1 million in assets, 300k cash on hand with about 400k in sales per quarter.

Unfortunately they also 101 million market cap (basically creating a P/S ration of nearly 100), 25 Million in accumulated deficit and a net loss of 22 million in the three months alone! 

but it gets better err well worse.

helix Wind is yet another reverse shell merger (hence the sudden arrvial). You would think with all the SPACS floating around the big boards if the street tought they had a good shot at success they'd go there instead of the OTC.

They have a going concern warning!

 " The Company has a working capital deficit of $827,193 excluding the derivative liability of $15,194,381, an accumulated deficit of approximately $25,050,697 at March 31, 2009, recurring losses from operations and negative cash flow from operating activities of $539,605 for the three months ended March 31, 2009. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.

 ...The Company plans to obtain additional financing through the sale of debt or equity securities...."

http://www.sec.gov/Archives/edgar/data/1364560/000101968709001887/helix_10q-033109.htm

"We anticipate that we will need $3,000,000 for operations for the next 12 months. These anticipated expenditures are for manufacturing of systems, infrastructure, overhead and working capital purposes.   Helix Wind presently does not have any available credit, bank financing or other external sources of liquidity."

 

ie.. somebody needs to pump their stock to raise funds. and no banks will even give them a line of credit. Hmmm

Maybe they shouldn't give their top execs salaries of 200K per year until you know they actually get semi close to profitability? You know that would cut the amount they need to raise significantly to make it through the year. I know that's crazy talk, entreprenuers bootstrapping. That never happens . Nahhhh

Well wait let's not be rash, let's hear what they have to say what their business and competitive edge is.

" Overview   Helix Wind is a small wind solutions company focused on the renewable alternative energy market.  Helix Wind’s headquarters are located in San Diego, CA   Helix Wind provides energy independence utilizing wind – a resource that never runs out.  Wind power is an abundant, renewable, emissions free energy source that can be utilized on large and small scales.  At the soul of Helix Wind lies the belief that energy self sufficiency is a responsible and proactive goal that addresses the ever-increasing consequences of legacy energy supply systems.   Plan of Operations   Helix Wind’s strategy is to pursue selected opportunities that are characterized by reasonable entry costs, favorable economic terms, high reserve potential relative to capital expenditures and the availability of existing technical data that may be further developed using current technology.  "

That's it?!! That's your entire stated business plan in your 10Q? That's some vague weak @## stuff man !Why don't you state this way "we are a business and we hope to plan to make money." That would have shared just about as much worthwhile info.


They do a much much better job on their website  www.helixwind.com  

I've been out of the science/engineering game for a long time and I'm amazed how little I can tell whether this in on the level or not tech wise. At least it doesn't fail the sniff test like most of these OTC clunkers.

And lastly and most importantly they have used PIPES and consequently I think one of their PIPES buyer is pumping the stock. As there are mutliple reports of unsolicited phone pitches and hey I got spammed myself.

here's a lovely thread on yahoo  and the lion about the stock being pumped

http://messages.finance.yahoo.com/Stocks_(A_to_Z)/Stocks_H/threadview?m=te&bn=95109&tid=6&mid=-1&tof=1&rt=2&frt=2&off=1#-1

 http://www.thelion.com/bin/aio_msg.cgi?cmd=search&symbol=HLXW.ob

 The comany may be a victim of circumstances in the credit market but,

I don't think I'm going out on a limb here saying the stock is badly overvalued and probably headed for a fall.

Disclosure: I have no position in the above mentioned stock but I reserve the right to do so at any time if I feel like it. Chances are I will be too lazy to do so. The above is not investment advice and should be treated as such. I am not an invetsmnet adviser, and I just said I was lazy, why would you consider taking investment advice from a lazy person? Look low float OTC penny stocks are very dangerous no matter how you play them. Just don't blame me if you do something dumb alright? It's your money, do your own research.

  

19 Comments – Post Your Own

#1) On June 11, 2009 at 2:45 AM, Tastylunch (29.42) wrote:

Their Promotional Video is oddly soothing and uplifting

ahhhh the mellow sounds of a deeply indebted wind company.

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#2) On June 11, 2009 at 3:21 AM, uclayoda87 (29.37) wrote:

A speculative company trying to make a profit in the state of California?

And they thought Don Quixote was mad!  These new green knights from San Diego must really believe in the hot air coming out of Washington.

I'm willing to pile on with a red thumb.

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#3) On June 11, 2009 at 9:21 AM, RaceCoach (< 20) wrote:

I received a “Special Situations Report” from The Fortune Financial today on HLXW, touting the immense value and upside.  The formal stock advisory did not offer any real substance, so I immediately jumped to "the Fool" to get the straight goods.  Thank you for this post.

Sounds like HLXW reallys "blows".

 

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#4) On June 11, 2009 at 12:33 PM, Tastylunch (29.42) wrote:

CORRECTION: I belive it's averaging 20k + shares per day traded not 200K

my apologies, still it's a big increase and doesn't change my opinion.

uclayoda87

LOL nice, yeha CA is a tough place to do business right now

 RaceCoach

 Np glad my dd helped you in your decisions.

general rule of thumb, if the stock is pitched to you unsolicited, the company almost always sucks.I've actually yet to have a "good "stock actually be faxxed to me in the 8 years I've been looking.

 And thanks for the name of the "pumper". That locks it up I think.

 

 

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#5) On June 11, 2009 at 12:59 PM, outoffocus (23.35) wrote:

LOL Love the disclosure. I've been waiting on more Tasty's trash.

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#6) On June 11, 2009 at 1:13 PM, nottheSEC (81.00) wrote:

In my opinion it is truly sad that they             apparently would take advantage of the historical green/sustainable movement to put forth this trash.

Science will now improve many more aspects of every day life. They could have easily faked an oil well with food dye or painted a rock to simulate uranium.

As for the investment side hmm. It is a short but those pumpers are geting more aggressive. 

My nickle...J

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#7) On June 11, 2009 at 5:17 PM, HelixWind (< 20) wrote:

It's easy to see how this could be viewed as described above, however if you go through what the company has been able to accomplish to date and its future potential (press releases, MOUs, strategic alliances) a very different picture emerges. The executive team is accomplished and experienced with backgrounds at solid, blue chip companies. The technology has been vetted and tested. The ROI for customers in targeted vertical markets is competitive.  The upside in the small wind market is enormous and there are distinct advantages to being a public company at this time as opposed to taking private funding. There are also risks, to be sure, as there are in all companies.

It's tempting to leap to easy and time worn assumptions when a seemingly familiar situation arises. The route of greater integrity, however, is to ask the probing questions, engage in a dialogue, find accurate answers and then arrive at a set of conclusions. Just because you don't understand the strategy and its merits (or demerits) doesn't mean it doesn't exist. You just might be surprised.

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#8) On June 11, 2009 at 9:41 PM, Tastylunch (29.42) wrote:

nottheSEC

I think HelixWind is probably legitimately interested in doing alt-e , just think they are being pumped by their PIPES investors who wish to dump.

outoffocus

Hah thanks, I wirte 'em up when CAPS ratable ones get sent my way.

Yeah the disclosure was fun to wite. Figured more people would actually pay attention if I didn't use legalese :)

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#9) On June 11, 2009 at 10:05 PM, Tastylunch (29.42) wrote:

HelixWind

Hello and and welcome to CAPS. I assume you are with HelixWind.

It's easy to see how this could be viewed as described above, however if you go through what the company has been able to accomplish to date and its future potential (press releases, MOUs, strategic alliances) a very different picture emerges.

Press Releases, strategic alliances don't mean jack. Fraudulent companies do these tactics becasue they don't have results to show. Even if you are innocent you like suspicious by association.

The lack of confidence by professional investors as evidenced by the lack of financing available to HLXW.ob is far more telling than any fluff PR you put out.

Given the debt, low revenue, exceedingly low asset base and going concern  warning I don't see how  saying the company is badly overvalued is an unfair statement.

The executive team is accomplished and experienced with backgrounds at solid, blue chip companies. The technology has been vetted and tested. The ROI for customers in targeted vertical markets is competitive.  The upside in the small wind market is enormous and there are distinct advantages to being a public company at this time as opposed to taking private funding. There are also risks, to be sure, as there are in all companies.

I don't disagree with any of  that . I haven;t checked on your exectuive teams background and feel that's not really important given the finances you have. Your filings with the SEC do an absolutely terrible job of splelling out what you do, if you want people to take you seriously than being specific would help tremendously.

Actually the tech you have looks plausible to me after a cursory evaluation. What doesn't look plausible to me is Helix having the finances to make it happen in a commercially viable way.

It's tempting to leap to easy and time worn assumptions when a seemingly familiar situation arises. The route of greater integrity, however, is to ask the probing questions, engage in a dialogue, find accurate answers and then arrive at a set of conclusions.

I feel I did that and you refuted none of what I said related the financial situation of the company. To be honest you haven't really said anything specific in your entire post.

Just because you don't understand the strategy and its merits (or demerits)...

I never argued you on the Tech side, but the financial side I understand very well. Helix has severe issues there. Your auditor made that painfully clear.

doesn't mean it doesn't exist.

It's up to Helix to prove it does exist  to potential investors. It's not a guessing game. Being more transparenent wth the strategy and getting a financial backer would go a long way to doing that. This should have been done before you went public.

You just might be surprised.

Yes I might but I haven't been so far. OTC stocks are frighteingly easy to understand. Last I looked I was batting nearly 1.000 on those over an 8 year time period. It's not becasue I am smart, btu because it's easy to discern.

Best of luck to you and please take my following advice to heart if you honestly wish to continue as a going concern.

1) get meaningful financial backing, not PIPES  but actual Venture Capital (with a long lockup date) and a Line of Credit.

2) stop churning Press Releases

3) Have your executives take appropriate pay for what your company is producing. 200k salary is not reasonable for  a company that's bleeding to death. Have them take it in stock until you get financial backing. If they don't have the confidence to hold you stock why should anyone else?

4) Most importantly stop the person pumping your stock (it makes you look like  fraud).By not disavovwing this behavior you are condoning potentially criminal behavior that bilks innocent people.

5) outline your strategy and perceived competitive advantage clearly in your filings. Be reasonably specific.

If you do these things, people may take you seriously. If you don'twell there is literally thousand of OTC stocks that have gone your route and gone under in short order.

Disclosure: I have no position in Helix Wind nor have I ever at this point. 

 

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#10) On June 12, 2009 at 12:16 PM, HelixWind (< 20) wrote:

I am with Helix Wind.

 

Keep an eye on the 8-ks and keep the faith.

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#11) On June 12, 2009 at 12:29 PM, Tastylunch (29.42) wrote:

HelixWind

I will watch the 8ks, I try to be fair.

You haven't earned anyone's faith yet 

and to be honest if you have something earth shattering to announce this soon you should had it in place BEFORE you went public.

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#12) On June 12, 2009 at 1:04 PM, HelixWind (< 20) wrote:

It's easy to pontificate from the podium, life in the trenches is vastly different.

The financial world from September 2008 to February 2009 violated most of the known rules of the universe, and the usual tactics and truisms simply no longer applied. Panic, fear  and consequently inaction were the ruling modes for investors and surviving during that period required thinking and acting extremely creatively. Much traditional thought got turned on its head as we collectively struggled to understand the new operating assumptions of the emerging financial landscape. And it's not over yet.

To be sure, the BB reverse merger route is fraught with peril. So is being at the mercy of VCs or PE groups who watch helplessly as their companies flame out and are unable to raise additional capital. As you duly note, many OTC companies have perished along the way. However others have thrived as well. It can be done, but you have to be smart about it.

We didn't expect this to be an easy ride. We have, however, gone in with our eyes open, we do have a plan for making this work, we don't have our heads in the clouds and ultimately history will judge our wisdom. 

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#13) On June 29, 2009 at 1:46 PM, Dauplat (< 20) wrote:

I just got a call from an international (offshore) number regarding this stock.  The guy on the other end was extolling its virtues, telling me that "the analyst who recommended this company also recommended Google."   He was very slick...  He got my phone number when I registerd on a web site called "Analyst Choice", which presents itself as a research site. 

 The guy wanted to make sure I'll invest, so he's going to call me back later in the week.  I wonder what I can do to have some fun with him when he calls...

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#14) On August 03, 2009 at 7:30 PM, tommyrand (< 20) wrote:

I think two points in the stream above are valid:

- the main line doubting the long-term viability of what is a sudden appearance in the public markets.

- that, given the financial markets over the last 6-12 months, that all options need to be tried, and that Helix is to be given some credit for tying something out in a time at which there is NO, I repeat NO, money around (I am a venture cap, involved in Cleantech).

I have invested in Helix, so I have a predisposition to see this thing in a positive light.

 

That said: any company capable of raising 3 M bucks, who is clearly having some success getting product to market, who is in a space that has (by all informed accounts) a huge upside, should be given the space to try out the route they're going.

 

Helix made a hard choice, and will have to bear the brunt of public response to that choice - but I say: wait and watch. This team took this route because it can move them forward. They have a good team, and a good product - but have a hard fight for long-term value in front of them.

 

Go for it, Helix. Not just for my piddly investment, but because you're doing a good thing in bad times.

Tom 

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#15) On August 04, 2009 at 12:37 PM, mrnice4230 (< 20) wrote:

I also signed upped at Fortune Financial for a research report on AES Corp.  Since then I have received emails and weekly telephone calls on HLWX.  I have been watching it.  I have enough experience in the market to be aware of pump and dump.  I got caught once some 25 years ago.  I have told the callers I do not like the financials, I do not like the low volume, etc.  and they have their pet scripted answers.  After reading the blogs today, I am more secure in not buying this stock.  I will watch it, but I do not own it.

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#16) On August 04, 2009 at 10:31 PM, Tastylunch (29.42) wrote:

Wow holy necro thread, where are people finding this?

HelixWind

As someone who has stared their own business in the last year and is currently "in the trenches" I'm not terribly sympathetic. I know it's tough out there but it's not impossible. Funding is available for projects that are adequately prepared/pitched.

As I said if the company has a gerat idea/porduct that should have been explaned to investors via Prospectus or whatever before going public. That is not dependent on outisde funding

Perhaps going public via a reverse shell merger is the best deal that your company could get, but that still doesn't mean your stock is a good investment for small investors.

I just don't see adequate funding to bring your vision to fruition and the valuation of the stock or new investors is extremely unfavorable relative to the substantial risk in my opinion

To each their own, I consider my point made and informed investors can make their own decisions.

Disclosure: I have no position in Helix Wind nor have I ever at this point.

Dauplat

That's pretty abominable that happened to you. I would say that clears up any confusion unfortunately as to what the PIPES investors intend to to do to the stock post lockup period.

I hope Helix wind nips that behavior in the bud, my guess they don't know it's happening.A lot of these companies get victimized by their PIPES investors.

tommyrand 

I agree it's admirbale to try to start a business. I do not agree it's admirable to start one that is woefully underfunded.

3 million bucks is nothing compared to what HLXW.ob is selling at, plus they raised that 3 million at well below sub market prices! Why should I pay market price when a probable pump and dump PIPES investor paid a lot less than that and may just to trash the stock as soon as their lockup is over?

Sometimes the responsible thing is to walk away, if this was the best deal Helix could get they likely should, have ceased operations until the credit market improved.

At the rate they are going they will chew through that 3 million very quickly.

I just don't see that as being smart. That's my opinion at any rate.

mrnice4230

Fortune Financial to my knowledge are paid stock promoters, at least if it's the group I heard of. Many stock promoters will pick names that sound "legitimate".

That should be further proof that this stock is likely going to tank in the next 12 months unfortunately...

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#17) On August 24, 2009 at 12:57 AM, HelixWind (< 20) wrote:

Disclosure: I am with Helix Wind.

Read the press releases and filings carefully and take the long view. There are over 250 small wind manufacturers worldwide (see the AWEA Small Wind report), most of them mom and pop operations. That's far too many.

Can customers differentiate between technologies? Can investors? What is missing, structurally, to enable the emergence of the small wind industry on a global level? What factors for success are critical for a global scale consumer facing technology business? What management and infrastructure skills and processes are required? What does it take to build a PLATFORM that can enable worldwide transformation and reengineering of how the wind is used?

The potential for the market is staggering. Serving it successfully requires many different components which take time and resources to assemble. 

The successful company that eventually dominates this sector will  require the following characteristics:

-multiple, great technologies for different markets

-world class engineering talent

-obsession with customer bliss

-transparency and accountability

-global reach

-purchase enabling tools

-financial savvy

Look carefully at Helix' strategy. Look at the elements that are being assembled. Watch for the filings and press. This is the front edge of a massive wave, the waters are choppy, lots can go wrong, but the potential.....

stay tuned.

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#18) On November 05, 2009 at 8:36 PM, TheHague (55.04) wrote:

I have purchased HLXW twice. It has made money for me both times because I sold it short! I faced the same onslaught of pumpers spoken of here is this forum. It is annoying at best. However, HLXW has a nice product! Its share price has conitinued to grow. The price has tumbled a couple of times and that is when I jump in and buy!

Is it a viable company? Not yet! MSFT was new at one time and faced many of the same hurdles HLXW faces. Lack of viability is really not a factor to me since HLXW has not been going for very long!

My feeling is that most, maybe not all, but most "green energy" companies are fads! It makes me sad to say it. I root them all on. The fact of the matter is they have a two to four year window in this country for which to prove their worth and get established. Then the tax credits will either be depleted or there will be a change in Washington when suport for these programs will be cut back or stopped altogether!

That is when the true cost of these technologies will be born by the companies who will be forced to pass those costs on to the consumers. Then most, if not all, will stop the push to green.

My neighbor bought a tax supported solar system for his home many years ago. He liked what it did for his electric bill. Finally the system wore out! I did not know it but there is a point where, like a car or televisions, the solar systems are not good any more! Anyway he checked on a new system and found it to be too expensive to install with out tax credits! He went back to his electric company and signed up for regular electricity!

It is my belief that is "green" will go away when the financial support from the Feds go away! Inevitably the present administration will leave power. Who will take their place is any ones guess. That in and of itself makes "green" stocks risky and highly speculative!

I play them for the short quick profit! Long does not even play into my view of green stocks. If HLXW makes it I will cheer them every step of the way. However, to give them big chunks of my money for more than a few days is some thing I am not willing to do at this time!

By the way, they are nearing my "buy" range again of $2.70. They always get me about 15-20%. They pop on occasion for more than that, but I am so nervous about their financial health that I rarely let my money stay there for long enough to take advantage!

This is not a promotion for HLXW. I currently don't own HLXW! I don't care if you buy them or not! If you buy based on what I just wrote you probably will lose money so don't listen to me and do your own d___ DD!

 Watch your own back and here's to good trading!

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#19) On November 06, 2009 at 12:11 AM, Tastylunch (29.42) wrote:

HelixWind

that's fantastic and completely vague.

I don't know why you bother to continue to post here. You clearly aren't saying anything. There's nothing to even refute or verify in what you said

Helix Wind might be a nice company, it's definitely a horribly overvalued stock.

TheHague

I have to admit I have no idea what you are getting at compadre. Sounds like you might be swing trading Helix Wind  both long and short. At least it sounds like you are skeptical & antsy enough to keep yoursefl out of trouble.

Traders like yourself, I think have little to fear from a horribly overvalued company like HLXW.ob...

long term investors on the other hand well they are playing with fire.

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