Kallo Inc. (KALO)

[TorontoNewf]

The things to keep in mind re: Kallo:

1) I haven't checked recently, but if I remember from a while back,
the f/s are not audited; feel free to correct me on that.

2) Kallo has no revenue. Nothing has *ever* been booked. Much has been promised, but NOTHING has been booked.

3) Cecil made sure to include a disclaimer (even when there was hope) to the effect of "although it's looking good, it is still very speculative". He made sure to cover his butt quite well. it is hard to hold anyone to a infomercial "we are in discussions with potentially 30 countries for our products" statements.

4) Even if something was to stick, it would be very easy to deal with it by blaming departed employees for speaking out of line.

5) Anything personal (or unusual) in 'prepaid expenses' will, at best, be simply reversed. Most Kallo investor decisions were made on the hope of revenue (i.e. greed), not on cost controls. Not difficult to argue that 'prepaid expenses' were not a material misleading statement.

The only valid argument I can envision sticking is regarding insider trading and poor BoD stewardship. They managed to award bonuses, pass self-serving equity transactions at the expense of minority shareholders, provided late filings consistently, and failed to disclose material information (i.e. when the possibility of a signed contract drops to zero).

I would love to see the SEC do an investigation, but I'm not holding my breath.