Got another 'hot tip' from good old Ken Coleman at Market Intelligence Center, this time for symbol IENI, or International Energy Inc. The boilerplate at the bottom of the email is the same as for the Octillion advertisement, showing that Ken got $6k for writing it and $10k in expenses. Searching through other resources I find that IENI has earnings of a minus 1 cent, and a balance sheet otherwise nearly empty. Surprising news, the same Nicholas Cucinelli is the CEO of this 'company' and of Octillion. How interesting. They have doubled their investment in research personnel. It isn't hard to double $100, or even $10,000. And all of them work out of the same office suite in Vancouver. Can you say 'shell game'?
International Energy Inc is going to get rich making oil out of algae, just like Octillion is going to make it big selling windows that generate electricity. I expect next that these people will be selling stock in cold fusion power plants. Anti-gravity boots. Fountain of youth products. IQ pills. Money multipliers. Anti terrorist night lights. Xray vision glasses. Future prediction earmuffs.
Thursday, October 11, 2007
Wednesday, October 10, 2007
How I threw away $1000
I read a stock tip in my junk email from a guy named Ken Coleman, who was touting something called Octillion, symbol OCTL. Most of the time I ignore crap like this but for reasons beyond my control this time I read it and acted on it. On a Tuesday I bought 1000 shares of OCTL at 4.55. On the following Friday I sold at 3.55 losing a fat $1000. I wanted to know why I could be so damn dumb, other than I am a white guy healthy enough to sit up and able to use a computer browser.
So I googled OCTL which is what any reasonably capable child would have done and within a few minutes I came up with a link to their balance sheet reporting as required by the SEC. Sure enough, it showed me that this company spends next to nothing, has never shown a profit, owns nothing, and makes nothing. For me the lesson is clear. Greed and the possibility of quick riches as spun by a paid advertiser are the worst possible motivations to carry with you.
Someone pointed out that the play on the stock would have been to sell it short. So I think that is like trying to fake out the guy with the shell game. The only ones giving up money on these transactions are the suckers, who always buy high and sell lower.
So I googled OCTL which is what any reasonably capable child would have done and within a few minutes I came up with a link to their balance sheet reporting as required by the SEC. Sure enough, it showed me that this company spends next to nothing, has never shown a profit, owns nothing, and makes nothing. For me the lesson is clear. Greed and the possibility of quick riches as spun by a paid advertiser are the worst possible motivations to carry with you.
Someone pointed out that the play on the stock would have been to sell it short. So I think that is like trying to fake out the guy with the shell game. The only ones giving up money on these transactions are the suckers, who always buy high and sell lower.
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