Houston Natural Resources Corp (HNRC)

[tutankhamen]

The issues for me really boil down to transparency:
1. Audited financials - there are none - each investment has to be audited on its own merits which will be time consuming and costly but without it, we don't actually know what a WNTR share is worth
2. PRs state investments but generally don't give detail as to the amount either in % or $ or share swap terms
3. Financial firm is mentioned as providing equity or credit or lines but never has it's name been mentioned by FK which is a red flag for me
4. Bought in for the $100M Gulf Mexico opportunity or the $100M energy staffing company which apparently is dead as Green Fund soaking up all FK's mind share and bank credit.
5. Solar revenues are years away at best
6. Dividend of a fund with 6 marginal companies and a $10M "funding commitment" that will be distributed July 30th but won't go live as a fund until "complete" which is not defined (ie. untradable = valueless). Funding commitment [PR] is supposed to be out completed by June 30th...waiting for it.
7 Dividend math would seem to be 1 Greenfund Share for each 100 WNTR common shares. That means 12.5M Greenfund shares. Also noted in Stock Trader that each Greenfund Share is worth $1 or 1 penny per WNTR share. That means the fund needs to be worth $12.5M which it currently isn't without the credit line.
8. Current $31M in assets is great but Revenue and profits are what drive stock prices and those are tiny compared to 1.25B shares out and 356M float. Profit drives share price, not assets, ask RadioShack about that.
9. Dilution from last summer has been in the range of 500M shares...what will stop this? What will stop the issuance of preferred shares to purchase stakes in companies? We need profits to invest not more dilution.
10. What are FK and his group paying themselves, we need to know.