Prop job newtrader...
I've spent the last few days, pouring over official and non-official documents, some dating back to 2005 or earlier, cross referencing the associated Company Officers, including background checks on each of them, etc...
I have come to the conclusion that this is what is known as a "Prop Job".
The companies associated are all owned and/or operated by Stephen C. Lumb, Ronald Y. Lowenthal, Peter J. Bezzano, Michael G. Saner and Alan Santini.
First and foremost, HGLC, which is run by the individuals listed above, is a non-reporting company, along with a host of other companies that are owned and operated by Stephen Lumb.
FFGO and HGLC share the same office space and the same Legal Counsel. If you compare the two companies, you will start to see that neither company has any revenue to speak of. In addition, neither company has filed a 10K or 10QSB, since 2005, when FFGO was still known as GWGO.
This is where the "Prop Job" comes into play. The companies are essentially supporting each other, through various PR's, each stating that they have value, which is based on the number of shares they hold of associated companies, which are owned by Stephen Lumb.
Essentially, they pass paper back and forth, which gives the appearance of value, deals being made, etc...
What caught my attention was the "Extraordinary Dividend".
After extensive review, I think the two companies are trying to garner outside interest (and sales), through consolidation of the two companies. Note - -
NEW YORK, NY, Jul 29, 2008 (MARKET WIRE via COMTEX) -- Fortress Financial Group, Inc. (PINKSHEETS: FFGO) notes that Hunt Gold Corporation has issued a Press Release today which states that Fortress Financial Group, Inc. is playing "hard ball" with them and that they are very likely subject to a takeover bid.
This is laughable, considering the relationship between the two companies and the fact that they are owned or operated by the same group of individuals.
Now, take into consideration the July 31st PR from FFGO...
NEW YORK, NY, Jul 31, 2008 (MARKET WIRE via COMTEX) -- Fortress Financial Group, Inc. (PINKSHEETS: FFGO) confirms that it has received a short term Loan facility in the amount of US$50 million to be used solely for further purchases of Hunt Gold Corporation's "free trading" stock, at what we view as "bargain basement prices," in the market; thereby increasing our Company's "free trading" stockholding in Hunt Gold Corporation.
Again, laughable...
Now, a "Private Equity Firm" is attempting to purchase controlling interest in both companies..? Well, blow me down with a feather... Note - -
NEW YORK, NY, Aug 01, 2008 (MARKET WIRE via COMTEX) -- Hunt Gold Corporation (PINKSHEETS: HGLC) confirmed this morning that it had received an offer for the Company which was valued at a price per share of US$0.025 per share. There were a number of conditions attached to this Offer and the Board of Directors requires more time before advising stockholders as to whether they can recommend this bid to stockholders.
The Board of Directors cautioned stockholders that the offer was made by a highly aggressive Private Equity Group which may attempt (and succeed) to purchase large blocks of this Company's stock; thereby giving it control of this Company through the "Back Door." We stated that we were powerless to stop this; should it occur.
Powerless..? I don't think so... There are many ways to stop a hostile takeover, IF they want to... Also, where did the Private Equity Group come up with .025 per share..? And, what is it based on..?
With no Audited Financials, I seriously doubt that any reputable Equity Company would make an offer, much less, an offer which is four times above where the stock is currently trading...
IMO - The "Highly Aggressive Private Equity Group" is just another company, owned and operated by Stephen Lumb and his crew, which they are using to not only consolidate the two companies, but also, to give the appearance that there is great interest in both companies, by an "Outside" suitor, which in-turn, creates even further interest by either current or perspective shareholders...
This has all the markings of a well thought out Paper Play, where the promoters get rich and the shareholders eventually get stuck holding shares of a worthless shell.
That's what your so called deal is...another paper play prop job.
But hey, doesn't mean you can't flip it.
