OGX Petróleo e Gás Participações S.A. (NASDAQOTH:OGXPY)

CAPS Rating: 3 out of 5


Player Avatar MrOneHundred (30.54) Submitted: 3/15/2013 6:56:33 PM : Underperform Start Price: $1.25 OGXPY Score: +125.39

So many Fools have been burned by this stock betting on the upside. After conducting some rather extensive research, I feel that I may have found a good candidate to hedge against future point loss while I wait for some of my bad calls to even out. (More will come.) The stock has a very negative trend developing and MACD is down. As far as real money goes- I don't dabble in Pink Sheets.


According to the article above, "OGX is the largest private sector company in the oil industry in Brazil, with 33 exploratory blocks located in some of the most promising sedimentary basins in Brazil (28 blocks) and Colombia (5 blocks). More than 90% of its portfolio is located in shallow water or on land, ideal conditions for the development of projects with rapid implementation and lower cost, both for exploration and for production." Doesn't that sound great?

The Negative:
Well, let's look at the financial statements of the corporation. Oh, wait a minute, the company only has annual reports that don't include sales/profits. *Face Palm* Based on what we do have, though, EBITDA is on the decline with SG&A expense on the rise. General costs are also on the rise. The trend indicators are also very poor here.

The Good News:
According to the article below, "Eike Batista's industrial empire, has declared three offshore oil fields commercially viable for development." On top of that the balance sheet shows an increase from 2010-2011 of Cash Only assets that go from $7 million to $52 million. Something very similar happened with CZR in recent time frames which caused the stock to spike 250% in roughly 3 months. Property over the last year has also spiked from $28 million to $277 million. This could very well end up being another huge burden on my account.


If that is the case and enormous growth happens, at least I will have learned something I suppose. :P

Report this Post 2 Replies
Member Avatar MaryStern (57.71) Submitted: 3/19/2013 5:56:21 PM
Recs: 0

It's my pleasure to let you know that I am higher in the rating now. LOL

Member Avatar MrOneHundred (30.54) Submitted: 4/1/2013 3:57:04 PM
Recs: 0

Good job. Don't worry, though- I'll still be a competitor relatively soon. There's a good reason why I nearly broke 1000 points in a month. ;)

I couldn't find much on MMTX except that it's an IPO stock. Good luck to you; I don't generally do IPOs, but here I go anyway.

MarketingMobileText, Inc. (Ticker: MMTX)
Net working capital of the stock is ($61,175.00) which in this case is also shareholder's equity. Meaning if the company files bankruptcy, the stockholder's are wiped clean. Unless you're telling me MaryStern = Kelly Storms or that you know this person and is a reliable business lady who will produce reliable results, I wouldn't touch the stock with a 9.5 inch pole. In the Use of Proceeds section on NASDAQ,

"This Offering is being made without the involvement of underwriters or broker-dealers. This means we will receive $600,000 if all of the shares of Common Stock offered hereunder are purchased. However, we cannot guarantee that we will sell any or all of the shares being offered by us.... Offering expenses have been rounded to $45,000 and have been partially paid from an initial loan from Kelly Storms, our sole officer and director."


Basically the underlying message I get from this IPO is that the company WANTS to wipe shareholder equity shortly after going public, assuming it makes it. Otherwise, the company can happily walk away with the money investors sent their way. If you think about it, spending someone else's $45,000 (on loan) so you can make as little as $0.5 million once all shares are purchased is the optimal strategy for a company that plans to operate as "a development stage company [with] plans to engage in the sale of mobile marketing solutions for businesses of all sizes." Even if the company is legitimately trying to operate, the demand and efficiency of mobile marketing is very limited- arguably underweight. So many people I know can be mobile marketers (a.k.a. high pressure sales-person). I took on a job in sales when I was younger (and hated it) and was offered a job at Waddel & Reed recently which I turned down because the environment was very distasteful. Customers also don't respond well to these sellers- sometimes ending with the company filing bankruptcy over lawsuits regarding bad salesmen. Try reading consumer reviews of a company called "Sierra Solutions." Another sales-focused company located in California (with its PO box in Nevada) that sells a false product. My point isn't that this company is evil because of the above stated. However, anyone who asked me whether they should invest in this stock, I would immediately say, "Nay" to.

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