America's Energy Co. (NASDAQOTCBB:AENYQ)

CAPS Rating: No stars

Recs

7
Player Avatar TSIF (99.96) Submitted: 3/4/2010 2:07:45 PM : Underperform Start Price: $2.22 AENYQ Score: +9.87

Many of my favorite fools piled onto this one early, but have closed thier pick already...Tastylunch, Anchak, BravoBevo, Bullishbavo, etc..... It's "shelf life" may be short at the rate it's dropping off, so maybe a pitch isn't worth the effort, but there are some choice bits in their SEC filings that, despite as many of these trashy-tasty treats as I read, never stop amazing me. I thought I'd share a few as this one dies away......

33 Million shares. Current value NEGATIVE 0.01 per share. Share price on the OB > $2:30 per share. Part time CEO.
$126 Million Market Cap.

This is my favorite from 24 November, so I'll put it first:

"We do not expect any significant changes in the number of our employees over the next 12 months. Our current management team will satisfy our requirements for the foreseeable future. Our Vice President of Exploration, Mr. Gerry Diakow, spends approximately 10 hours per month on our Company's affairs when he is not involved in field operations. When Mr. Diakow is involved in field operations, he may spend up to 50 hours per month on our Company's affairs. Our President, C.E.O. and C.F.O., Mr. Leonard MacMillan spends approximately five hours per month on our Company's affairs. "

If this isn't enough to get you interested in a company with a 120 Million Dollar Market Cap with 30 Million shares outstanding at an average book value of NEGATIVE 0.01 per share....then I don't know what would be!!!!

==============================
1. "On January 21, 2010 we completed a Merger with Americas Energy Company, a Nevada corporation("Americas Energy Company(Private)"); "
Gotta love Nevada....home of the $5 Stock Ticker.

2. "Plan of Operation: In October, 2005, we raised an additional $60,000 through a private placement offering of 300,000 shares at $0.20 per share. We also consider this offering to be part of the financing milestone in the execution of our business plan. The second milestone was the completion of two phases of exploration on our Copper Prince Property. This property did not warrant further exploration and we have allowed the claims to lapse. The third milestone was the completion of phase one exploration work on the Dalvenie Property but results did not warrant further exploration and we have let these claims lapse.

STRIKE ONE and TWO as a junior resource developer.

3. "Our unaudited financial statements are stated in United States Dollars"; "The following Plan of Operation contains forward-looking statements that involve risks and uncertainties, as described below. Americas Energy Company's (previously known as Trend Technology Corporation) (the "Company", "we", "us" or "our") actual results could differ materially from those anticipated in these forward-looking statements."

Our books aren't audited, our plans aren't final, ignore everything about this SEC report we are forced to file to keep our $5 OB ticker.

4. "Americas Energy Company, a Nevada Corporation "Americas Energy Company (Private) was formed on July 13, 2009 as a Nevada corporation. AECO (Private) is a consolidator of high quality energy properties, operating out of main offices in Knoxville, TN. We will continue the acquired business operations of mining high-grade specialty coal from our leased property rights located in Bell County, Kentucky. "

Sounds good. High Quality energy properties are certainly what is needed! No issues with this one. How/where did we get these high valued properties if the first two claims were abandoned?

5. "Financing Activities: On July 2, 2009 and August 25, 2009 respectively, the Company signed two promissory notes at $200,000 US and $400,000 US. The notes are at 5% interest per annum and are due on July 2, 2012 and August 25, 2012 respectively ...... On October 6, 2009, an additional loan of $250,000 was received from the same third party as the Company's previous loans. The loan is secured by all of the assets of the company, bears interest at 5% per annum and is due in full with all accrued interest on October 6, 2012.

Not much money to buy high quality assets or develop them. Sounds like at least one investor believes in this company, but only with the entire company as collateral on a Million Dolllars worth of notes. Another $4 Million was subseqently loaned under the same terms...?? Only $30 Million more in financing needed to by Evans.

6. On February 6, 2010, the Company entered into an agreement to purchase all of the outstanding shares of Evans Coal Corp., a Kentucky corporation "Evans."' $3 Million paid to date; $4 Million due on closing on the 5th day of March 2010 and $25,000,000 to be paid at the rate of $5.00 per short ton of coal mined, sold and shipped from the leaseholds of Evans. . The $25,000,000 is to be secured by a promissory note and the note Matures on March 5, 2025. If permits are not obtained on the "Artemus" project by December 31, 2010 then the principal of the note shall be reduced by $10,000,000. If permits are not obtained on the "Breathitt" project by December 31, 2016 then the principal of the note shall be reduced by $5,000,000. In addition to the purchase price a separate finder's fee is to be paid as a 2% override to A.Y. Evans, Jr.

Not bad, they bought a non-operating coal company with money they don't have.

==================

Tasty added this on my last call as he reentered:

3/3: "Sykes just rehsorted, great timing! I would have re entered my red thumb if SRNE.ob ever trades again :(
http://www.timothysykes.com/2010/03/the-single-best-short-in-the-entire-stock-market-right-now/

Report this Post 2 Replies
Member Avatar Tastylunch (29.20) Submitted: 3/5/2010 2:27:23 PM
Recs: 0

bummer dude you caught the bottom of the bounce. :(

Member Avatar TSIF (99.96) Submitted: 3/5/2010 3:15:19 PM
Recs: 0

Yes, I got caught playing it. I'm guessing based on the message traffic on this one that it's a temporary bubble while MM's try to get one more round out of it. There was certainly no news, so timed buying. That works once. I think I'll survive it. Hard to say, my ego is so fragile! :)

Featured Broker Partners


Advertisement