Kodiak Energy, Inc. (KDKN.OB)

Re-load, but here is my original pitch:


If you invest in this company, you are basically betting that they will find oil & / or gas reserves w/in North America before they run out of money (or dupe further people to invest in their company). Yes, even my kids get lucky and win at cards some times, but I'm not sure I want to invest my hard earned money into totally speculative plays.


As of 6/07 the company had $4 MM in equity, and, for at least the 3 years I see out on Yahoo, has not generated any revenues, and thus loses money from operations (the bigger they get, the faster the money is going away).


As a start-up, none of this really set off any alarms per-se, as you gotta start somewhere. However, I love that they have essentially paid an "independent" analyst to cover and promote their stock. Here is the title of the article:


Kodiak Energy Has Huge Resource Upside Potential Of $49 Per Share In Its Little Chicago Prospect, 'Speculative Buy' Rating Reaffirmed By Investrend Research Affiliate SISM Research


After reading throught the fluff in the article that never addresses the point made in the title of the article, you can see the following disclaimer about SISM, which did the independent coverage on Kodiak:


"Kodiak Energy will pay SISM Research $1,750 per month over a two-year period solely to ensure independent coverage. SISM and Investrend Research take steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage."


They also provide a link to SISM and Investrend Research. I am considering going into their website and shorting every stock they cover which looks even close to questionable in my CAPS account. Maybe in the end they are a legitimate research organization, but something tells me they aren't.