Stinky Stock Roundup
Sponsored by WallStreet Guru
Where are they now? Mar 31, 1999
Faithful readers will note a change with this edition of the Stinky Stock Roundup. After chronicling the whims and woes each month of every Stinky Stock that's appeared on this site, we've decided to pare back the list. Companies profiled in 1997 will no longer be part of the monthly review. We'll still monitor them, so if something truly newsworthy comes out of one these operations, we'll be sure to let you know. But for the sake of space, and to help us avoid beating some very comatose horses, the following companies will no longer be included in the Roundup: Galaxy Foods, Zitel Corp., Say Yes Foods, Redox Technologies and Keystone Energy.
It was an interesting group, the Stinky Stock Class of '97. On average, their share value had declined 76 percent between the time they were profiled and March 31, the date they were retired. And what led to such stupendous declines?
Galaxy Foods, the first stock we ever called Stinky, struggled to maintain a Nasdaq listing by going through a reverse split. But the company, which touts itself for making healthy cheese alternatives, has never really cracked the retail market. Throughout the company's declining fortunes, its CEO has continued to be generously compensated.
Zitel Corp. finds itself in a similar situation, different product. Zitel keeps insisting it's got the Y2K problem's fix, but either the company is wrong or it's not doing a very good job convincing clients and investors.
Say Yes Foods spooked us with some 12 million mystery shares in its float, incredibly bold sales and earnings predictions and a marketing plan for its fat-free milk product that just didn't add up.
Another company that brought mystery to the mix was Redox Technologies, Inc., a firm that claimed to have the last word in battery technology and has yet to produce the product it's been promising for more than two years.
And finally, Keystone Energy claimed it would boast a $12 million profit on more than $170 million in sales in 1998. Instead, the company still has no significant sales, and is defending itself in two class action lawsuits filed by disgruntled investors. Keystone boasted about its plans to capture 1 percent of California's $22.5 billion energy market when it was deregulated in 1998. They're still trying. Keystone takes the award as the biggest percentage loser among the Class of '97, dropping 98 percent from the time we profiled it.
There was one other Stinky Stock, but it's completely disappeared. Dynacom Telecommunications Corp. morphed itself into a totally unrelated company, changed its ticker symbol and simply slipped away.
The following table lists some of the companies which have been featured as "Stinky Stocks" on Stock Detective, and provides a quick update of these companies' latest shenanigans. Stock prices are as of the market close on Mar 31, 1999.
Click the company name to view the original Stock Detective report.
Company Symbol Date Featured Price Current Price Change
ImaginOn IMON 2/26/99 $5.93 $3.97 -33%
ImaginOn had the dubious distinction of making the Nasdaq's leading loser list twice in one day recently. On March 26, the company's warrants had the Index's second-highest percentage loss for the day, dropping 25 percent. ImaginOn common stock rounded out the Nasdaq's top 10 percentage losers on the same day, shedding 19 percent. Ironically, these pitfalls came the day after ImaginOn broadcast a conference call on the Internet among top executives and investors.
Millionaire.com MLRE 12/30/98 $21.63 $3.00 -86%
Under the heading bad news is better than no news, Millionaire.com announced that it's under investigation by the SEC. Since the Commission does not disclose the names of companies under investigation, or even confirm or deny an investigation, no one probably would have known about it if Millionaire.com hadn't blabbed. According to the online auctioneer, the SEC subpoenaed documents on March 12 for a "review of its past capital raising activities and trading of Millionaire.com securities." The company also said it is distancing itself from another firm with SEC problems of its own. Millionaire.com has replaced its investor relations firm, Fortune Marketing & Capital Consultants, Inc. with Chernoff/Silver Associates. Fortune Marketing's president, Steve Samblis, is under investigation by the SEC for allegedly violation the Commission's disclosure rules.
PinkMonkey.com PMKY 12/03/98 $13.50 $1.39 -90%
No news from the site that wants to be the Cliff's Notes of the Internet. And technology being what it is, anyone depending on PinkMonkey for last minute salvation could be out of luck if the site's down, like it was on March 30 for a good part of the day.
Great White Marine Recreation Inc. JAWS 10/29/98 $2.22 $2.44 +10%
Investors on the message boards are very restless, anxiously waiting for a long-promised 10-SB from Great White. And their queries haven't been quelled with the announcement of a new outside board member, or the addition of a new line of boats to the company's inventory.
DNA Medical Technologies DNAT 08/31/98 $1.03 $0.28 -73%
Well, the allotted time when DNA Medical Technologies said a new majority shareholder would take over the company has come and gone. In late February, the firm said Don Washburn, its current majority shareholder, planned to sell his stake to Human Medical Options International Ltd. Terms of the deal were not disclosed. According to press release dated Feb. 25, the sale would be completed within 30 days, pending due diligence. While investors wait to see what happens, one insider cashed in their DNAT chips. Kindra K. McFadden, whose relationship to the company is unknown, registered for sale 100,000 shares of Rule 144 restricted stock valued at $50,000
Rhombic Corp. NUKE 06/22/98 $0.94 $0.32 -66%
Here's another entry in the "investors are restless waiting for info" category. It seems Rhombic has been promising investors for weeks that it will be making an announcement concerning its affiliation with Daimler Benz. It sounds like folks feel like they're being teased, with one message board regular sending the company a letter that asks flat out whether it's a pump 'n dump scheme.
Platforms International PLFM 05/20/98 $0.92 $0.57 -38%
Almost a year after Platforms International started promising investors great things, the company has yet to deliver on a single substantive promise. When we first joined this telecomm wannabe, big contracts for wireless telephone systems in Brazil were imminent. Nothing yet. And according to some folks who crashed the company's "symposium" in L.A. earlier this month, it was mostly in-house people sitting around trying to look busy; hardly the giant information blowout promised to investors.
ProNet Link PNLK 05/15/98 $6.37 $3.44 -46%
First in, first out? ProNet Link shares started trading publicly one year ago today. In the past month, investors holding stock restricted under SEC rule 144 have registered more than 2.3 million shares for sale. Usually 144 shares become free trading one year after issuance.
Eventemp ETMP 05/06/98 $0.00 -100%
Delisted August 1998.
Zulu-tek ZULU 03/25/98 $5.40* $1.47 -73%
OK. Let's get this straight. First, Zulu-tek effected a stock swap with Enhanced Services that rescued the latter from being de-listed from Nasdaq. Then the two companies were going to be affiliates developing Internet advertising "solutions." Last fall, Enhanced Services failed to raise $50 million in a desperately needed private placement, and shortly thereafter lost its Nasdaq listing. Then Enhanced Services was going to acquire Zulu-tek through a 1-for-10 stock swap. But then Zulu-tek did a reverse split so the stock swap could be 1-for-1. And now Zulu-tek says it's acquiring two Enhanced Services subsidiaries through a stock swap, even though one of those companies - BrandsForLess.com (Holdings) Inc. - recently announced plans for an IPO. Amazingly enough, it appears a small cadre of investors has not thrown up their hands in disbelief, continuing to cheer from the sidelines.
* price adjusted for 1-for-10 stock split effective Dec. 31, 1998
Saf-T-Lok LOCK 02/27/98 $3.66 $1.34 -63%
This company tried to make something out of almost nothing in its latest press release. It seems the General Accounting Office cleared Saf-T-Lok as a vendor so that government agencies could buy its product if they choose. Well, get a load of this headline: "General Services Administration Awards Five-Year Contract To Saf T Lok Inc. For Handgun Safety Locks." Read to the end of the first paragraph and you'll find this little qualifier: "The contract does not require the government to purchase any of the company's products."
B.A.T. International BAAT 02/07/98 $1.63 $0.26 -84%
After falling slightly off its promotional game in January and February, B.A.T. once again has the hype machine running in full force, cranking out 12 press releases in March. Nudged in among these gems is an announcement that B.A.T. has released its third-quarter financials (unaudited, of course, and still nothing's filed with the SEC). A quick peek at these statements shows B.A.T. has more than 78 million shares outstanding, lost more than $1 million in the three months ended Sept. 30, 1998, and owes more than $80,000 in delinquent payroll taxes. Way to go, Joe (LaStella, B.A.T.'s CEO)..
CopyTele COPY 02/06/98 $2.25 $1.59 -29%
According to the company that hasn't earned a dime in 25 years but has managed to keep selling stock, it now claims a contract with Harris Corp. that could lead to joint ownership of intellectual property. No promises, and it's not even clear that Harris feels the same way about the deal. Although CopyTele promoted the agreement in a press release through the PR Newswire, Harris has made no mention of it. In fact, Harris's public relations department was not familiar with CopyTele. At press time, a Harris spokesman could not confirm whether the contract with CopyTele was valid.
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