NY Times article by Gretchen Morgenson:
June 25, 2000
Saving the World? At Least Selling Stock
By GRETCHEN MORGENSON
THE over-the-counter bulletin board is a hazardous place for investors, where blasts of hot air about obscure stocks and their supposedly dazzling prospects propel shares into the stratosphere. Alas, these fliers usually fizzle out.
One of the latest balloonists is Save the World Air, an Australian company that says it has the "world rights to market and manufacture the zero-pollution fuel-saving device." The company's shares have rocketed from around 10 cents a share last December to close on Friday at $5.125.
The device that is catching investors' fancies was invented by Pro Hart, described by the company as an internationally acclaimed artist living Down Under. According to a recent news release, the device "virtually eliminates the emission of dangerous polluting carbon monoxide exhaust gases."
The company goes on to explain that the device, about which it supplies few details, is priced as low as $195 and can be installed in about 30 minutes on a variety of internal combustion engines.
The Web site says Save the World Air is "a debt-free company dedicated to the future of our children."
Roger Neal, a public relations coordinator hired by Save the World Air last Tuesday, said demonstrations of the device in Los Angeles and New York have whipped up investor interest. "Stockbrokers all over the country are paying attention to this and it's something that could really revolutionize the car industry," Mr. Neal said. "Word is getting around. There's a lot of buzz on it."
But other aspects of the company may not pass the, ahem, smell test. The company's market valuation is approaching $90 million, but for the quarter that ended on March 31, the company said it had $873 in cash on hand and showed a net operating loss of $9,822. Save the World has issued 15.4 million shares to individuals in exchange for marketing rights to the pollution device and other services.
Save the World has become a chat-room favorite of late. Last year, there were only a handful of postings a month devoted to the stock on Ragingbull.com. So far in June, there have been more than 800 comments.
But the company's financial statements filed with the Securities and Exchange Commission may say it best.
"CNBC and CNN will soon be commencing an intensive advertising campaign for Save the World Air Inc. and already the response management has seen is great," the filings gush. "The main focus of this advertising campaign is to spread public awareness that the zero emission control device does exist and also has the added advantage of being able to reduce fuel consumption by up to 63 percent."
It is impossible to make this stuff up.
nytimes.com |
