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Given their history, accounting can't be trusted.
It wouldn't surprise me to find they've valued the Ft.Union property at $240 million.
BTW
Management has been a revolving door for years.
They don't $240 million in assets
If they did they wouldn't have fired nearly everyone and filed for bankruptcy protection.
But you are right about management being incompetent.
No, there is no buyout coming. There is nothing to sell.
Earnings? They never have earnings to speak of. They make money selling stock. Always have.
If you're up you better sell quick.
You'll be one of the few to make money buying this pig
They only started calling themselves "clean coal company" when the term 'Clean' got hot. Until then their claim to fame was taking cheap, low BTU coal and making it burnable. In 30 years of trying they have yet to make the first penny selling anything but stock.
They closed the FU plant because the Total cost to produce K-Fuel exceeds the price anyone was willing to pay and the plant had had major problems the production and waste disposal. After closing the +$100,000,000 plant they tried to claim it was only a test facility; an outright and blatant lie.
And yes K-fuel unstable as hell. They had to keep it hosed down at the plant to keep it from self combusting. There were times they put it back into the ground. A train car of the stuff caught fire in transit.
They were on the verge of delisting.
Delisting will cause havoc with their financing. I believe someone is spending a great deal on money to prop it up.
http://finance.yahoo.com/news/Evergreen-Energy-Granted-an-bw-252741311.html?x=0&.v=1
I'ma short investor, what do you need?
Sure, that's what they claim to do
"The company’s segments include the GreenCert segment, the Plant segment, the Mining segment and the Technology segment."
GreenCert segment - Besides burning cash, it's doing almost nothing.
The Plant segment - A total loss. After spending over $100 MILLION dollars building it and then trying to operate it for a few months they gave up and closed down saying it wasn't economically feasible and it may never be economically feasible to produce K-Fuel. They never sold a single ounce of K-Fule and later claimed it was only built as a test facility: a blatant lie.
The Mining segment - They sold it to pay bills. It was the only real asset KFx/EEE ever owned.
So what's left - Smoke, mirrors, press releases and bonuses for management.
jjames: What's your take on NGBF? - It's a POS.
Miles F. Mahoney left EEE to head NGBF. - He's a loser.
New Director of NGBF Carl O Bauer was DOE lab director and forced out/left quickly as director of NGBF. Did he find out its a blended scam. - Beats me.
NGBF = another short play??? - I don't understand the question. If you are you asking if it would be a good idea to short it after it has fallen 99%; no it would not be.
Kinda late to short NGBF.
That pig has been falling from the day it started trading in late 2006. It also looks like big money shorts started having their way with it a few months ago.
I would not short it now, there's no meat left on the bone and you could get caught in a short squeeze rally when the current guys want out. They could take a 50% bounce from 7 cents to a dime and not be hurt at all. Not the same for a new position.
IAMCLP1, Thanks for the kind words.
Playing the short side is seen as evil and frowned upon by most.
I don't care if you lose money and I'm not trying to "save" anyone.
I play it on the short side and post my opinion. No different than you posting yours for the long side.
Well OK, there is one small difference; I've been right for 5 years.
That's what I mean: They sell Hope.
I've learned it's best not to bet money on unknown events or outcomes. Especially on a company having the history of this one.
Dig deep and you'll discover they have failed at every single endeavor they've attempted for over 25 years. I see no reason to expect their future to be different from their past.
I would be happy to explain it: Selling products or services at a loss is not a viable business plan.
Evergreen tends to spend a lot of money on projects that NEVER produce income only press releases for the gullible. Last quarter they spent $4 Million to generate $103 thousand in revenue.
If they did in fact measure anything in Canada, how much did they spend and how much did they make? Do they have a contract for generating long term income or is it another BS press release?
And it breaks a Dollar again.
Why not to like about shorting this pig.
It is not only unstable and prone to spontaneously combustion, but also has the added benefit of producing huge amounts of toxic waste while costing too much to process to be competitive.
There are many reasons they haven't sold a single pound of K-Fuel or a single license to produce it in the nearly 30 years of trying.
No, it's a fact.
They've never had a viable product or service. They sell hope to the ignorant.
No they don't have viable products. Never have, never will.
Their products are are hype and hope.
Good lord, what was he thinking?
They must have given him the money to buy stock, or made it a condition of employment. It wouldn't be the first time.
The warrants mean nothing except someone got screwed
Pre reverse they had an exercise price of $2.75. EEE didn't trade to $2.75 then did it. It won't be going to $33 either.
Institutions are NOT supporting Evergreen
EEE classifies itself as an Electric Utility company and are included in that sector. Because they're in the sector, Sector Funds buy it. It is not an endorsement of the company. They buy all stocks in the sector.
When they get delisted, they will be removed from the sector and those funds will then sell it.
Do a little work people.
The Pump and Dump
This highly illegal practice involves artificially inflating the price of an owned stock through deceptive and misleading positive statements so that the stock can be sold at a higher price. A small collective of informed people purchase a stock before they recommend it to thousands of investors. The stock price rapidly spikes, but equally as quickly, it falls. The original group sells off when the price peaks, banking a huge profit. There’s a variation on this scam called the “short and distort,” where, instead of spreading positive news, perpetrators use a smear campaign to drive down the price of the stock and then profit by short-selling.
An unprecedented example of the pump-and-dump occurred in 2000 when Jonathan Lebed -- then 15 years old and living an otherwise normal teen life in New Jersey -- bought penny stocks and promoted them on message boards online. When other investors bought the stocks, he sold his for a profit, leaving investors in the lurch. The SEC filed a civil suit against him, and though he never admitted guilt, he ended up paying $285,000 -- a pittance, considering he made in the neighborhood of $800,000.
The Hook: Fraudsters claim to have inside information about a stock, which they use to lure people into buying it. The desire to make money fast is tempting to many investors, who fall for the email-spamming techniques swindlers’ use, which include beguiling phrases like “Don’t you dare take your eyes off this one!” or “Catch the new leader in stocks!”
In recent months, this scam has become prevalent in the green-technology sector, wherein promoters endorse “compelling macrothemes: the rise of solar, wind, and other alternative or renewable energy sources. The promoter convinces you that some tiny stock has a game-changing technology, a huge untapped market, or a big government contract about to fall in its lap,” explains Toby Shute of The Motley Fool.
Red Flags: Many scammers will recommend small companies since they tend to be more unstable; it’s easier to manipulate a stock when there's little or no information about a company. Other cautionary signs include emails with unrecognizable “from” fields, audacious promises (how would a stock gain 35% in one day?), no contact information for the email sender, excessive use of exclamation points, forecasts of fast, exponential growth, and no actual product but a promise that “the prototype is just about ready!”
Ring a bell?
12 to 1 reverse and it tanks 32%
The gift that keeps on giving, if you're short.
This is what eventually happens to all scams. They run out of suckers.
Anatomy of a Pump and Dump = EEE
Do yourself a favor and watch this video.
insert-text-here
Look at that. Broke support andhit a dime
Just like I said it would.
History say it falls after the reverse split
It is NEVER a good sign when a company has to R/S its stock to stay listed.
Good luck getting contracts, its NEVER happened, ever.
The company has a history of being 'on the verge' of contracts that never come through. If you understood the math of K-Fuel you would understand why.
K-fuel cost more money to produce than it can be sold for.
The K-Fuel process generates massive amounts of toxic waste that must be dealt with. They are NOT a clean energy company.
The total K-Fuel process consumes more energy than the end product produces.
Evergreen Energy itself has said it may never be a viable product.
But what the heck, buy some while it looks cheap. Although I'm not so sure a company with no visible means of income is cheap at any price. There is a reason it fell from $22 to 7 cents; the market agrees with me.
People have been buying it all the way down from $22 a share, but you may be the lucky one.
No rumors posted just facts
I can't believe the number of people who buy this stock knowing nothing about its history or actual prospects. The company survives by issuing press releases and stock to the uninformed.
BTW
Its been on my Conviction Sell list for 5 years and 20 points.
Seriously? You think stocks move on "Vibes"
The trend is down and has been for a couple of years.
The company is burning cash at 5 MILLION a quarter with no visable means of income.
They just sold their only asset to pay bills.
They haven't sold the first pound of K-Fuel ever. After trying for over 25 years.
They blew over $100 MILLION DOLLARS on the third failed attempt to produce K-fule themselves and closed the plant.
They continue to claim others are buying into the technology even though they themselves can't make it work and said it may never be economically viable.
The bad vibe you smell is coming the rotting corpse of Evergreen Energy.
EEE about to break support, 10cents next stop.
EEE has lost 45% in 5 days
Speaks for itself.
Nothing wrong with trading it, just don't get sucked in by the BS press releases. They have a 25 year history of BS press releases designed to pop the stock price. It's all they have and all they've ever had.
EEE tanks another 18% after releasing BS
"The second quarter of 2010 has been a period of significant progress for Evergreen,stated Thomas H. Stoner, Jr., CEO and director of Evergreen."
Huh, they sold nothing except assets.
"We began private beta testing of GreenCert EMIT, advanced the product development of GreenCert Energy 2.0 focusing our product line on the energy and utility market, and made progress with K-Fuel in China via our equity joint venture."
1. He says they are still in test? Really? Did you investors know GreenCert is still not ready for sale? What the h*ll have been spending millions of dollars trying to sell all this time?
2. Try to find any meaningful information on their new China partner. None exists. Sounds like more BS to me.
Why the 250% rise over eight days?
Nothing has changed. It is the same company as it was at 8 cents.
Little money
Few to no sales
No plan to cover costs
Puff pieces from pump companies to keep the public buying
Nothing has changed for 25 years except the bag holders and stock price.
Another well run company? Are you kidding.
This company has been and continues to be ran by a bunch of morons and/or scam artist.
Company insiders have been caught and fined for manipulating the stock price.
They've hired PR firms to produce puff pieces to prop up the stock price.
They blew nearly $200 MILLION on a K-Fuel plant they couldn't keep running and admitted K-Fuel may never be economically viable to produce, yet they keep spending money trying to convince other companies to repeat the same mistake and pay them for the right to produce it.
They failed to sell any K-Fuel even though they offered to sell it at a loss.
After they scrapped the FU plant they claimed it was built as a test facility and after 25 tests it had served its purpose. That was a blatant flat out lie.
They had to sell the only legitimate form of income they've ever owned (the coal mine) to pay off debt they took on at rates that would Tony Soprano blush.
They are burning through $5 MILLION DOLLARS of cash a quarter with nothing to show for it.
They have not produced one quarter of positive cash flow or profits in nearly 30 years of trying.
The only people to ever make money off this company are company insiders or shorts.
Nothing wrong with trading this POS, but don't believe a word you hear or read about the company's prospects. They've been on the verge of greatness for over 25 years and failed at every attempt.
My point- they've never succeeded at anything.
They have failed at every attempt to monetize k-fuel for over 30 years. They themselves said it may never be an economically viable product. Closing the FU plant was the best example you could ask for. If they themselves couldn't even produce and sell k-fuel at a loss, why would someone pay a license fee and build a multi-million dollar plant to repeat the failure?
It cost more to produce the stuff than it's worth, and it's unstable to boot. Customers or shippers don't want to deal with spontaneous combustion.
Analyze the company any way you like using REAL numbers and you'll see it is worthless. There is a reason it is selling for 9 cents a share.
P/E, they have no E.
ROE, they have no E.
ROA, they have no A.
Earnings growth, they sold their only earner.
Buying a stock based on pie-in-the-sky PR releases is never a good idea. They had to go to China to continue the 'Story'. They've exhausted all domestic attempts. Nothing will come of it.
All penny stock have the potential to double.
But what if it falls to 3 cents first and then doubles to 6?
To those that bought at $22 it looked cheap at $18.
To those that bought at $1 it looked cheap at 50 cents.
Geoff Gannon- Evergreen Energy (EEE) is about to go bankrupt.
That’s why the stock price has been going down. When Evergreen goes bankrupt people who own the stock will get nothing. Even people who loaned the company money will only get some of that money back.
In an earlier podcast, I talked about a score you can use to see what shape a company is in. It’s called the “Z-Score”. And it tell you how likely it is the company will go bankrupt in the next couple years. The Z-Score can help you avoid stocks where you will lose every penny you put in. I’m afraid Evergreen Energy is one of those stocks. A Z-Score above 3 is safe. A score between 1.81 and 3 is borderline. Any score less than 1.81 means the company is headed for bankruptcy. Evergreen scores a 0.6. I’ve never seen a stock score that low.
I didn’t need to calculate Evergreen’s Z-Score to see its about to go bankrupt.
In an earlier podcast, I talked about how I look for companies that have 10 straight years of positive free cash flow. Evergreen has 10 straight years of negative free cash flow. In 9 of the last 10 years the company had negative operating cash flow. That means more cash went out the door than came in even before the company spent a dime on building new stuff. The day-to-day business is so bad Evergreen would still lose money even if it stopped spending anything on its future.
Evergreen Energy is a speculative company. It’s a gamble. Or it was a gamble. Now it’s a sure thing to go bankrupt. Even now the stock isn’t cheap enough. The people buying and selling shares aren’t taking the risk of bankruptcy seriously enough.
Last I checked, shares of Evergreen Energy were trading at 17 cents. The company has just over 200 million shares outstanding. That means the market capitalization – or “market cap” – is around $34 million. To get the market cap, multiply the number of shares outstanding by the stock price. The number of shares outstanding is on the front page of the 10-Q and 10-K reports to the SEC.
You can see the 10-Q and 10-K reports at EDGAR. Just type the letters E-D-G-A-R in Google. Then click on the link that says “Next-Generation EDGAR system”. Then click on the link that starts with “company or fund name”. Then type “EEE” in the ticker symbol box. The third file down says “10-Q”. That’s the company’s quarterly report. Every 3 months, Evergreen sends a report to the SEC saying what its balance sheet looks like, how much money it made or lost, and other things like that.
You bought this stock. So I’m guessing you didn’t look at the SEC reports. That’s the first thing you should do. Always look at the latest 10-Q and 10-K. Always.
Although I talk about sites like GuruFocus and Morningstar – and those sites are great tools – they are only tools. Use them when you’re browsing for stocks. Don’t use them when you buy a stock. Always look at the real 10-Q and 10-K reports before you buy a stock.
The reports for Evergreen Energy are ugly.
Start with the balance sheet. That’s the most important financial statement. The balance sheet is where you find the biggest dangers. A company with a solid balance sheet won’t go bankrupt right away. Even if it loses a lot of money, it won’t go bankrupt for at least a couple years. That means you won’t lose all your money – at least not quickly – if you stick to buying only companies with good balance sheets.
Evergreen’s balance sheet is bad. It has $8.13 million in current assets. Current assets are things like cash, accounts receivable, and inventory.
The company has $22.93 million in current liabilities. That means it has negative working capital. Some companies can run fine with negative working capital. But it’s a bad sign for cash flow negative businesses to have negative working capital.
Think of a bathtub. The water in the tub is the stuff the company has that can be turned into cash. Then there’s the flow. Is the faucet open and pouring new water into the tub? Or is the drain open and sucking water out of the tub?
In this case, we know the drain is open. More cash is going out of the tub than coming in. That’s been true for most of the last 10 years.
When the tub is empty, the company goes bankrupt.
Evergreen has $8.13 million in current assets and $22.93 million in current liabilities. That means Evergreen’s stock of cash and stuff it expects to turn into cash is $14.8 million less than what it expects to pay out in the next year.
This negative working capital doesn’t come from Evergreen’s normal business. That amount is equal. You can check this yourself by looking at current liabilities and subtracting short-term debt. Without the short-term debt, Evergreen would have equal amounts of current assets and current liabilities. That’s what the business would look like if Evergreen didn’t have any debt.
The gap is all short-term debt. Evergreen owes $14.7 million that it has to pay this year. And it can’t make that payment.
If Evergreen was profitable there might be a solution here. Evergreen could borrow more money from someone else to pay off the debt that’s due this year. Good businesses do that all the time. They can do it because new lenders step up. The lenders know they’ll get paid off in the long-run.
But Evergreen isn’t a good business. It isn’t profitable. In fact, it has a long record of losing money even before it has to make interest payments on its debt.
Lenders aren’t stupid. They see what I see. They see Evergreen is headed for bankruptcy. So they won’t lend the company more money. Without new cash coming from the faucet, Evergreen’s tub will run dry.
Evergreen is headed for bankruptcy. And it’s getting there fast. On May 18th, holders of $28 million worth of Evergreen debt told the company it was in default. That means Evergreen has to pay those debts now.
A judge could agree with Evergreen and say the company is not in default. But for you - and everybody else who owns Evergreen stock - it doesn’t matter. Not if you’re going to hold onto your shares. Because one day those shares will be worthless.
Sell now. I know it’s hard to hear. I know it’s hard to take a loss. But it’s the right thing to do. Don’t think about the price you paid. That money is gone. You can’t do anything about that mistake. But you can make sure you don’t make another mistake.
Think of it this way: you own stock in Evergreen Energy. You own part of the business. That business is worthless. Believe me when I say that. It isn’t a question of whether Evergreen is worth 15 cents or 10 cents or 5 cents. It’s worth zero.
But there are people out there willing to buy this worthless piece of paper from you. The stock you own is junk. If you keep it you will end up with nothing. But someone is willing to pay 16 cents for it. Let them. It’s a good deal.
I know it doesn’t feel that way now. And it won’t feel that way after you sell the stock. But it’s the right thing to do.
Don’t think of stock prices as telling you what the company is worth. Just think of a stock price as an offer. That’s all it is. What matters is the value of the business. And the value of this business is zero. When someone offers you 16 cents for something that’s worth zero – that’s a bargain. Sell.
If they offer you 10 cents – sell. I don’t normally say this, but sell at any price. Evergreen Energy is literally worthless. Your stock is literally worthless. You need to sell it for whatever you can get.
Hopefully you can learn from this experience. Losing money hurts. Admitting a mistake hurts. But think about why you made that mistake. Think about how you didn’t look at the SEC report. How you didn’t look at the balance sheet. How you didn’t calculate the Z-Score. How you bought into a speculative company with years and years of losses.
There's the bounce.
Now you know where the bottom should be.