SEC suspends trading of Kingslake Energy's stock

What!?!?!

I just saw this bit of news (full news story here) but only because I couldn't believe what had happened to my KGLJ stocks: They've lost 62% since I bought them! not something I had expected, but then again, I guess no one expected a company's identity to be stolen?

One thing is that someone got hold of 26 companies' identity numbers (CUSIP numbers), another thing is that they were actually able to use them to create new, fake companies. How can this go about without any checks? I have no idea what a CUSIP number is or how those systems work, but it surprises me that there are no checks what-so-ever for things like this. Normally when something is about financial matters (insider trading, money laundering, counterfeiting etc.) there are loads of checks and monitors but apparently not when it comes to creating companies.

It's all quite strange, and of cause it has resulted in everyone jumping ship (well almost everyone; I havent jumped yet) and the stock price to plummet 50% today alone. I'm still sticking in there though. For one; I still believe there is a growth potential and that as soon as all this has cleared up, the stock price will go up again, and secondly besauce I don't like the thought of loosing 62% of my investment....I know it's not how an trader/investor is supposed to think (take your loses before they get too big) but as with Countrywide I'll try and go long on this one hoping against odds that it'll recover.

Taking a hit

My portfolio has taken a bit of a hit over these last days. From being
up $100+ I was down $160+ yesterday. This is mainly due to Boeing
loosing the big defence contract, Countrywide falling even more than
before and Kingslake dipping almost 12%.

Otherwise nothing much have changed...well except for the rest of my
stocks falling slightly. I find my self going long instead of the short
momentum bursts I was hoping for. I'm not too worried though, as I'm
confident that the companies will recover - yes even Countrywide.
Actually Countrywide rose slightly yesterday despite FBI investigations
etc., mainly due to the FED promising $200Bn in capital to the market.

Pennystocks

This (OTCBB:SYBD) is the sort of stock that I'm hoping to find...just a few days sooner than this. They have a really interesting product with lots of potential, and they just had a windfall with four separate grants worth about $3.5m making the share price shoot up.

Unfortunately they're not very easy to find, though I still have hopes for GSPG and KGLJ...

No wonder Countrywide is falling

Just found this on money.cnn.com:

"Countrywide (CFC) said last week that 90-day delinquency rates in its $28.42 billion adjustable rate mortgage portfolio climbed more than 900% from a year earlier, up to 5.4% from 0.6% during the same period last year.

The lender also warned that 71% of its ARM borrowers are making only the minimum payment allowed -- and that 80% of those loans had not required borrowers to verify their income prior to receiving funding."

Basically; they've lent a lot of money to people they weren't even sure could pay the money back, and with the house prices free-falling they suddenly realise that it wasn't such a good and lucrative plan after all. Well duh!

I can only hope that the merger with Bank of America goes through and they do a stock-swap or something...these stocks are fast becoming penny-stocks, and not the sort that are interesting to invest in :)

Need strong nerves these days

You need strong nerves if you're following the stock market at the moment. There's quite a bit of volatility and it seems the market just cant decide if it should crash because of the credit/food/bond insurer crunch/crash or if it should go up with the lower interest rates and the hope of having seen a bottom.

I logged on to Zecco around the time the market opened and saw to my horror that almost all of the previous days' gain were gone! What had happen was that KGLJ had dipped a bit (from +15% to -15%) and Countrywide has found a new low (why on earth am I still holding on to that position? it's lost 26% since I bought it!...hoping for a miracle I guess...) and a few of the other stocks in my portfolio had gone a bit down as well.

Anyway, as of now, I've regained a large part of the previous gain, despite CFC digging itself deeper in it's grave...still hoping for Goldspring and KGLJ to start jumping up in price.

Blogging from Nokia E61

It's interesting how some of my older posts keep getting hits from Google. On of them is about options for blogging from my (now more than two years old) Nokia E61, and I thought that since my blog is mostly "read" by people bouncing in brow a google search I'd detail an ealier post with instructions for how I'm now blogging from my phone.

There's really nothing to it, and it only requires two simple steps:
- setup mail2blogger (only works if you're using blogger.com as a blogging service but other services/software might offer something similar)
- setup a new contact an the phone so you don't have to remember the weird email address you ended up with

And you're ready to blog! Just start a new email with your new blog contact as recipient, the post title as the subject and write the post as the body. Only downside I've yet not found (or tried to find) a solution to is how to include html like links. I believe the phone will only send as plain text, but even if i could include html I think it takes *too* many button clicks to get to the '<' char etc.

Oh, and in case you haven't noticed...there's no spell checker included in the phone's email software :(

KINGSLAKE ENERGY (KGLJ)

I dismissed buying Index Oil & Gas (IXOG) as I'm not sure it'll move the way I would want it to. What I've been looking for is something that has potential to go from the possibility of something to actually getting it. Sort of like Goldspring who may have enough gold and silver in their land to mine it, but this has not yet been established. IXOG have already moved passed that point as they're already delivering natural gas to customers, so I've been looking for something different.

Kingslake Energy (KGLJ) isn't all that different, except for one point: the current price. IXOG has been trading around 60c for a while now, and until recently KGLJ had been trading around $1 but then dropped to just 2c in s day! Rumour has it someone had to sell their shares and dumped 198.000 on the market - no wonder the price dropped. Anyway, if this rumour is correct there I see at least two possible reasons: either the owner had to sell for financial reasons or the company is in trouble and this shareholder knows. First reason can happen to anyone but the second hopefully shouldn't happen without a public announcement. Acting on knowledge like that could be seen as insider trading, but when evaluating the risk involved I wouldn't rule it out.

Anyway, I lean towards the first type of reason, that doesn't involve anything bad about the company, and taking into account what the company have been traded at, what it's trading at at the moment as well as the latest news about production starting up I decided to place an investment in the stock. Not exactly a huge sum of money (again, I only set aside $2500 for this hobby) but I manages to scrape together 10.000 shares. There's not that many shares available at a time but there was liquidity enough for me to get them all at $0.026 in three batches (I'm glad I'm not paying commission at Zecco :)

So far it's been a good idea. KGLJ closed at $0.029 which is a nice 14.5% increase. It should have a good possibility of gaining even more over the next few months as they've just started drilling for more natural gas.