Gray Fox Petroleum Corp. (NASDAQOTH:GFOX)

CAPS Rating: 1 out of 5

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Member Avatar TSIF (99.96) Submitted: 7/10/2014 12:37:51 PM : Underperform Start Price: $0.80 GFOX Score: +31.49

Sometimes I roll in and out of these shells to guess the technicals. This one is making a nice pattern, of lower highs, but doing a good job bouncing off the $0.50 or so lows...could go back up to the $0.90 range, but I called it back down around $0.80 and watched it go to $0.88 later in the day. Seems to be heading down again, but volume remains low and the company is doing a great job maintaining the share price on the low volume.

Fresh annual report.
http://biz.yahoo.com/e/140627/gfox10-k.html
Continues to show this is a shell company of dubious nature and no merit. Anyone can lease land from the BLA. Must drill two holes by next year to keep the leases.
Business plan very detailed. Give the MBA student an A on this portion of his "real life" shell.

Some rough math, however in the Officers compensation. Doesn't add up....
The million shares at about $0.03 each should help pay off those college bills if they can be floated into the market.

Reverse shell. 0.00 intrinsic value. See my closed pitches, not going too deep on this one...

27M market cap.

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Results of Operations

Year Ended March 31, 2014 versus 2013

We incurred a net loss $1,354,219 for the year ended March 31, 2014 (or $0.02 per share) versus a net loss of $31,012 in the same period in 2013 ($0.00 per share).

Revenues

The Company had no revenues or operations during the year ended March 31, 2014, 2013 and the period from September 22, 2011 (inception) to March 31, 2014.

General and Administrative Expenses

General and administrative expenses were $101,985 during the year ended March 31, 2014 versus $19,726 for the previous year. The increase is due mostly to increases in advertising and travel costs.

Officer Salaries

Officer salaries were $464,386 for the year ended March 31, 2014 versus zero for the previous fiscal year. Of the $464,386, $100,000 represents cash payments pursuant to Lawrence Pemble, our Chief Executive Officer, pursuant to his employment agreement of May 31, 2013. The balance of the expense, or $34,386, represents the accrual of the value of Mr. Pemble's first tranche of stock-based compensation, 1,000,000 shares which were issued June 20, 2014.

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Member Avatar tprooney3 (76.38) Submitted: 5/30/2014 8:39:55 AM : Underperform Start Price: $0.90 GFOX Score: +41.27

I love companies with no revenues and current liabilities that exceed total assets. The stock spam in my inbox is just the frosting on this cake.

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Member Avatar SmartAce (99.85) Submitted: 3/10/2014 1:38:05 PM : Underperform Start Price: $1.78 GFOX Score: +72.15

“Research Driven Investor llc received twenty five thousand dollars cash from Lake Group Media, Inc, a non-affiliated third party to profile GFOX for a one day investor relations campaign.”

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Member Avatar EvanBuck (99.79) Submitted: 3/7/2014 12:10:29 PM : Underperform Start Price: $1.86 GFOX Score: +73.88

WHAT DOES GRAY FOX SAY?

...nothing but press releases and falsified hopes. Another pump and dump stock for us CAPS gamers to red thumb.

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Member Avatar FoolTheRest (99.90) Submitted: 3/7/2014 11:28:06 AM : Underperform Start Price: $1.87 GFOX Score: +74.19

Nice find, Jed.

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Member Avatar jed71 (34.03) Submitted: 2/4/2014 9:20:44 AM : Underperform Start Price: $1.86 GFOX Score: +73.71

GFOX is yet another very questionable early stage firm. And it has all the attributes of a pump and dump. From the 10Q:

"On June 10, 2013, the Company entered into an Agreement for Redemption of Shares of Common Stock, pursuant to which the Company redeemed 4,700,000 shares of Common Stock held by Mr. Pemble. As a result of this redemption, on June 10, 2013, Mr. Pemble’s shareholdings decreased from 7,000,000 shares to 2,300,000 shares, which represented approximately 53% of the total shares issued and outstanding.

On June 18, 2013, the Company received approval from the Financial Industry Regulatory Authority (“FINRA”) to change its name from “Viatech Corp.” to “Gray Fox Petroleum Corp.” and to conduct an 8:1 forward stock split of the issued and outstanding shares of Common Stock whereby each outstanding share of Common Stock would be exchanged for eight new shares of Common Stock. On June 20, 2013, the Company effected the stock split, which increased the issued and outstanding shares of Common Stock from 4,320,000 shares to 34,560,000 shares. In connection with the Change in Control and the name change, on July 19, 2013, the Company’s ticker symbol on the OTCBB was changed from VTCH to GFOX. As of January 24, 2014, the Company had 35,890,000 shares of Common Stock issued and outstanding."

And voila, spend 50K to gain control of a defunct shell company and turn it from an interior design firm into an oil and gas company.

"The Company has one full time employee, Lawrence Pemble, who serves as its sole officer and director. The Company is currently an exploration stage company exploring oil and gas production opportunities. On December 2, 2013, Gray Fox completed the acquisition of 22 separate oil and gas leases (the “Leases”) issued by the U.S. Bureau of Land Management for the State of Nevada (the “BLM”) from FFMJ, LLC, a Nevada limited liability company (“FFMJ”), for an aggregate purchase price of $250,000. The leased land, known as the “West Ranch Prospect,” comprises 32,723 acres in the Butte Valley Oil Play Region in North Central Nevada. We have a 100% working interest and an 82% net revenue interest in the Leases. If the property is viable and can be developed, we will receive 82% of the net revenues generated from the property. As the leaseholder, we are responsible for evaluating, exploring, paying for and maintaining the Leases. As a result of the acquisition of the Leases, the Company is no longer a “shell company,” as defined in Rule 12b-2 of the Exchange Act. This change in “shell company” status was previously reported in Item 5.06 of the Current Report on Form 8-K, filed on December 6, 2013, as amended. Our plan of operations for the next 12 months is to conduct geological mapping, gravity surveying and 2D seismic coverage on the West Ranch Prospect. To that end, we have developed an initial exploration plan to identify drilling targets. This initial exploration plan is designed to identify new drilling locations targeting certain geological formations that the Company believes may be capable of producing oil or natural gas in commercial quantities."

OK, one of the funniest lines I have read in a 10Q : "The company is currently an exploration stage company exploring oil and gas production opportunities." "Currently"? Are you planning to stay an oil company or should we expect a change to say, fast food or maybe back to architecture? So 1 full time employee and a $250K gas lease. Oh, and they have $29K in working capital (cash). So can anyone tell me why this would be valued at $71MM?

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