Tuesday, July 8, 2008

I Need to Make Sure No Agents Knock on My Door

On July 5, 2008, at 2:03:52am, I received a message on my cell phone. Sender? No name. Sender's phone number? "3729". The message? As follows:
jmagok@jillfeinbaker.com / / just take a look at this smallcap
Symbol-chgy, China Energy Corp
Hand off

After some searching...

JillFeinBaker.com - Jill FeinBaker is a licensed clinical social worker in Skokie, Illonois.

jmagok@jillfeinbaker.com - No hits, recomends "jmagick@jillfeinbaker.com" instead. Still, no hits. Why don't I ask Jill herself, you say? Well, Mr. Smartypants, I actually did that. Her response: "I am sorry, that address is not affiliated with me." However, I don't believe it's a completely bogus email, because I actually sent a message to it, and though I received no response, I also didn't receive a Mailer Daemon response.

jmagok - By itself, the only hit seems to be a misprint in some book written in God-knows-what.

smallcap - Either referring to a typography type or a company which has less than $2 billion of market capitalization. My guess is it's the latter.

chgy - A legitimate stock symbol.

China Energy Corp - The name is pretty self-explanantory. I looked up CEC to see if there were any recent news articles relating to it, and found one. The article is an investment one which suggests that oil prices will continue to rise, and any speculators calling their stocks now are mistaken.

Hand off - This one really gets me. We all know what "hand off" means, but in what context? Perhaps it has to with cellular communications...(I'll admit, most of that article went over my head)...or perhaps it has to do with a stock handoff...though I don't entirely know what that entails...


Now, I was thinking back to the number that sent the message to me...3729. Could it mean something more? So, I downloaded this numbers-to-words program. In the end, I ended up with 81 different jumbles of letters, the only two words being "draw" and "fray". But the rest, they looked so much like...stock symbols?

Hence, I took all those 4-letter messes and pasted them into Google Finance. I found that some were indeed ticker symbols.
DRAX - "Drax Group plc is a United Kingdom-based company that is principally engaged in the power generation business operating in the commodity markets of power, coal, biomass and carbon." (!!!)
DRAY - "DrayTek Corporation is a provider of network security, remote access and voice over Internet protocol (VoIP) solutions for residentials and small and medium-sized enterprises."
DSCY - Discovery Oil Ltd. (!!!)
EPAX - "Ambassadors Group, Inc. (Ambassadors) is an educational travel company that organizes and promotes international and domestic programs for students, athletes and professionals."
EPAY - "Bottomline Technologies (de), Inc. is engaged in providing electronic payment and invoice solutions to corporations, financial institutions and banks around the world."
ERCX - E.R.C. Energy (!!!)
FRBW - "Frederick Brewing Co. is a specialty brewer that brews, kegs and bottles at its brewery in Frederick, Maryland, for wholesale to its 140 independent distributors, more than 20 styles of flavored beers under the brand names of Blue Ridge, Wild Goose and Brimstone."

Three energy-related companies! Now we're getting somewhere. The latter two are small potatoes (in fact, Discovery Oil Ltd.'s company profile on BusinessWeek says "Discovery Oil, Ltd. does not have significant operations."), but Drax seems to be on its feet, with a stock price of over $760 (or are they pounds?).

In fact, according to some news articles, it looks like Drax is growing, and is even thinking of expanding.

!!!

I think I may have figured it out. Now, bear with me...

In order to extend Drax Group's growth, China Energy Corp will "hand off" much of its stock to the British company. Being a smallcap company, they can more easily do this, and by doing this, their stock price will increase dramatically! This J. Magok, even if they're not associated with Jill FeinBaker, is one of the few people who are willing to go and put this information out there.

What does this mean for me?

It means...it means...it means I sure know how to waste an afternoon.

2 comments:

Dave said...

Interesting blog with nice research

WELCOME TO THE WONDERFUL WORLD OF "PENNY STOCKS"! In this magical world, you can watch yourself be manipulated while purchasing a cheap (i.e.= worthless) stock that's price is carefully controlled. Rumors and bogus information is passed freely to you to let you believe it is poised for a very dramatic rise in value very soon (thus making you a ton of dough). You are strongly encouraged to buy more shares (= more dough). At some point predetermined by the souless market makers, the stock will suddenly vanish (profits and value) right before your very eyes! If it doesn't completely vanish, it will shrink to such a size that the cost of selling it is more than the value of the 10,000 shares you now proudly own, big spender!

This used to be the domain of sleazy telephone solicitors, junk fax's and emails. Now they have invaded our sacred cell phones as well.

When eating out, or in the stock market: "Buy the Steak, not the Sizzle!

Christopher said...

Good point Dave...Although it looks like DRAX dropped massively today from your reported 760 to 739 as of 10:16 AM PST.

Something doesn't seem to make sense with this company, though. According to their website and Wikipedia, their biggest venture is running a single coal plant in Yorkshire, which is claimed to supply 7% of the UKs power supply. They also sell fuel by-products. While their reported expenditures seem normal, it's odd how on Wikipedia it's reported that their revenue is in excess of 1.24 billion pounds (that translates to revenues of $2,454,396,799.55 according to XE.) While I could imagine a company like that having revenue in the hundreds of millions, I can't imagine a company like that having revenue of billions (assuming that it's true and not Wikiality.)

Here's some really limited info on the company - apparently, there was an attempted buy-out:

http://en.wikipedia.org/wiki/Drax_Group

Also: http://www.draxgroup.plc.uk/

On a final note, it seems somewhat nefarious that the company shares the name with the villian Hugo Drax from the 1979 James Bond movie, "Moonraker", a ruthless businessman and aspiring dictator with heavy investment into space industries (in the original book it was metals.

-Comrade Chavez