Kaching Kaching (NASDAQOTH:KSIH)

CAPS Rating: No stars

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Player Avatar TSIF (99.96) Submitted: 9/27/2010 4:51:20 PM : Underperform Start Price: $2.75 KSIH Score: +110.07

Investing in any company blindly without doing research may net you an occasional winner, but in the long run it will catch up with you. Investing in a company called Kaching Kaching without doing any research is a recipe for financial suicide. The only people getting any Kaching off this one are the founders gettting a short term job and nice paper job title before the small cash infusion they somehow got from duped investors is all gone.

It's hard to judge startup companies that have no data yet, but if you read a 10Q that is as blantant as this one and take a chance then you'd be better off trying the slots in a casino...after all they are only on average 35% weighted against you.

An announcement they will go from 20,000 stores to 100,000 stores in their store fronts with "viral growth" sounds GREAT! But when they aren't booking any revenue off the 20,000 stores, how does 5X nothing rate an attaboy and 22,000 shares worth of new bagholders??

For every company like this a half dozen people will argue what an opportunity this presents and how you need to get in on the ground floor. Don't fall for this type of hype. A startup company with proper funding and investors and a product that is unique to the market can sometimes grow into the next big thing. One issuing shares to pay the few employees it has is not off to a start that you want to be anywhere near.

Keep in mind while reviewing their 10Q that this company, as of today has a $140 Million Market CAP. If you think it will grow into it in the near term, (or ever), then your investment future is in jeopordy.

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August 17th 10Q. http://biz.yahoo.com/e/100817/kckc.ob10-q.html
First Warning, Nevada and "reverse merger" from a mining company.

"Although Duke Mining acquired Kaching Nevada in the Merger, for accounting purposes, the Merger was accounted for as a reverse merger since the stockholders of Kaching Nevada acquired a majority of the issued and outstanding shares of this Company's common stock"

Their own warning, I love the "if ever".

"KaChing commenced operations in September 2009. The Company currently maintains its corporate office in Henderson, Nevada. The ability of the Company to achieve its business objectives is contingent upon its success in raising additional capital until, if ever, adequate revenues are realized from operations."

"We generate revenues from (i) the sale of licenses to Web Store Owners, (ii) the monthly license fees paid by the Web Store Owners, and (iii) revenues from products sold on the Web Stores. For the three-month period ended June 30, 2010, we had revenues of $100,667, compared to revenues from sales of $177,243 for the first three months of this year. ......Our revenues for the June 30, 2010 period declined compared with revenues for the prior three-month period because fewer new Web Stores were opened, and sales at the existing Web Stores did not materialize as we had expected."

"As shown in the accompanying consolidated financial statements, we incurred a loss of $659,192 for three month period ended June 30, 2010 and a net loss of $1,172,158 for the six months then ended. Our current liabilities exceeded current assets by $143,847 at June 30, 2010. In addition, our negative cash flow from operating activities for the six month period ended June 30, 2010 was $759,409.

We currently do not have sufficient funds on hand to fund our anticipated on-going operating expenses. We do not have any bank credit lines. Accordingly, we will have to obtain additional debt or equity funding in the near future in order to continue our operations. Although the amount of revenues generated from our operations is expected to increase during the remainder of 2010, we do not anticipate that we will generate sufficient cash from operations to fund our working capital needs until the latter part of the second half of 2010, at the earliest. Accordingly to fund operations for the next twelve months, we intend to continue to seek additional financing from various sources, including from the sale of convertible debt or equity securities. We have not yet identified, and cannot be sure that we will be able to obtain any additional funding from either of these sources, or that the terms under which we may be able to obtain such funding will be beneficial to us.. If we do not obtain sufficient additional funds in the near future, we will have to suspend some of our operations, scale down our current and proposed future operations or, if those actions are not sufficient, terminate our operations. "

Report this Post 3 Replies
Member Avatar JaysRage (88.89) Submitted: 10/4/2010 2:50:20 PM
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The last paragraph pretty much sums it up.

Member Avatar Mary953 (77.81) Submitted: 11/2/2010 7:44:30 AM
Recs: 1

Oh, but how can you resist a company called Kaching Kaching? And located in Nevada - in Las Vegas, maybe? ;) You know you are gambling if you are foolish enough to put any money on it, but at least you KNOW you are gambling.

Member Avatar TSIF (99.96) Submitted: 11/2/2010 5:25:31 PM
Recs: 0

It reminds me very much of a casino, but I like the odds better in the casino! Good to hear from you Mary, it's been awhile! Good blog today on voting!!!

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