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  • Independence Energy Corp. (OTC: IDNG) Bust Or Boom 36 comments
    Jun 20, 2012 3:52 PM

    Independence Energy Corp. (OTC: IDNG) has made a spectacular run over the past few months. Fueled by exciting news from the Company as well as a multi-million dollar stock promotion, IDNG has moved from a start point of around $0.50 to close to $4 per share. Just when we thought the stock could not go any higher; The Company has announced a 5 for 1 forward split of the stock!

    Independence Energy is oil and gas exploration and development company focus on projects in the United States. The Company is currently seeking to further advance their existing projects through development of offset drilling and to expand its portfolio to include additional property interests in the USA.

    To that end that Company has recently signed several joint venture agreements and acquired interest in several well programs in Texas. While this is certainly evidence that the company is moving in the right direction, does this justify a $100M market valuation?

    Investors have always loved resource stocks such as oil and gas as well as gold exploration companies. These stocks can produce spectacular returns in a very short time frame especially if the target company makes an important discovery. However, too many of these so called home run plays collapse just as fast as they rise, spelling huge loses for investors. One of the primary reasons these stocks are so highly volatile is that much of the time the companies do not have the funds to execute their business plan. Many of these companies do have valuable resources in the ground however the cost of mining these resources is more than they are worth.

    Back to Independence Energy Corp and its $90M market valuation. While the company certainly seems to have some exciting projects on the horizon, they have $0 revenues to date and minimal assets. In fact the company's biggest project by far seems to be the multi-million dollar stock promotion. While the promotion, coupled with the recent news of the 5 for 1 forward stock split could certainly drive the stock much higher in the short term, is this really the path towards building long term shareholder value? If history is any indication then multi-million dollar stock promotions built on hype and hot air are certainly not the right path at least for investors; these types of stocks tend to drop big once the promotion is over and trade for a fraction of the highs they reached at the peak of the hype.

    Some may look at my statement that "the company's biggest project by far seems to be the multi-million dollar stock promotion" as a little bit presumptuous so let's look a little deeper;

    On one side we have the stock (OTC: IDNG) currently trading at $3.73 at a market valuation of around $90M and averaging about $5 to $10M in dollar volume per day. This type of valuation and market activity would lead the average investor to believe that this Company must be a serious mover and shaker with a team of skilled professionals doing $10's of millions in revenues.

    Looking at the Independence Energy, Corp's recent filings points to quite a different story indeed. As per their latest 10Q the company has $2,051 in the treasury and $0 revenues to date. They also state that the company neither owns nor leases any real or personal property and that they pay $125 per month for use of office space and services. One might also note that they are currently behind in their $125 per month rental by a total of $425. As well Bruce Thomson, the CEO of Independent Energy, Corp remains the sole officer, director and employee of the Corporation.

    Conclusion: I will say it again; Independence Energy Corp. biggest project by far seems to be the multi-million dollar stock promotion" Now that they have announced a 5 for 1 forward stock split and the promotion seems to be in full swing there is definitely a very good chance of continued upward movement in the short term. In the long term things do not look so good however. One does not have to look far to learn that these heavily promoted stocks tend to collapse just as fast as they rise and IDNG and its $90M valuation will be no different. Once the hype is over and the stock loses that steady upward momentum that has continued to lure unsuspecting investors in, Independence Energy Corp cannot maintain anywhere near its current market valuation. One day soon, this one too shall fall, and fall it will.

    OTCMagic.com is quickly becoming the preeminent destination for up to date information on the hottest stocks in Penny stock World.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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Comments (36)
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  • Braggo
    , contributor
    Comments (36) | Send Message
     
    "The Company expects that shareholders holding common shares at registered brokerage firms will have this forward split transaction processed automatically in their accounts over the NEXT FEW DAYS." Perfect time for the instigators to dump shares because some of the naive longs are trapped and aren´t able to sell their shares at the moment. So, nobody can realise gains and the instigators can sell their shares unhurriedly to new buyers.
    22 Jun 2012, 05:49 AM Reply Like
  • burgie45
    , contributor
    Comment (1) | Send Message
     
    It looks like what you are describing is happening right now. The stock split on Friday (6-22-2012) 5-1, but I am unable to buy or sell the stock because the shares have not been distributed from the company. According to Fidelity, the split shares are not scheduled to be distributed until Wednesday (6-27-2012). In the mean time, the share price has fallen from 93 cent to 41 cents. Any suggestions…
    25 Jun 2012, 04:57 PM Reply Like
  • monkey bob
    , contributor
    Comments (2) | Send Message
     
    Short sellers will have to buy to cover at some point. And who knows what the promoters would do. Things are not as bad as you thought. Watch closely.
    26 Jun 2012, 12:51 AM Reply Like
  • monkey bob
    , contributor
    Comments (2) | Send Message
     
    All the short sellers would have to buy to cover at some point. And who knows what the promoters would do. Things are not as bad as what you thought. Watch closely.
    26 Jun 2012, 12:51 AM Reply Like
  • cdrmsquare
    , contributor
    Comments (10) | Send Message
     
    This was my first experience with a penny stock - attracted by the Bollinger report. I read some other literature from what I thought were reputable sources which seemed to corroborate the Bollinger Report; so I thought I'd play this one. Being the first penny stock for me, I only dipped my toe into this one - buying a mere 500 shares. Things looked great for about 3 weeks, and I was starting to take a look at some other penny stocks. With what happened, I now realize there is a lot more going on behind the scenes, up to and including the publication, from multiple sources, of a lot of BS for potential investors. One never knows who's telling the truth and who isn't. Will probably be my last venture with this stuff.
    26 Jun 2012, 12:30 AM Reply Like
  • otcmagic
    , contributor
    Comments (30) | Send Message
     
    Author’s reply » The thing about penny stocks is NEVER EVER believe in the company over the long term, that's a loser strategy. Play them while they are hot and then TAKE UR PROFITS!

     

    If you want to believe in the company over the long term, find stocks listed on the Amex or Nasdaq. OTCBB u trade them when they are hot and then u sell them and save your profits for the next one. Period.
    8 Jul 2012, 08:05 PM Reply Like
  • roywil
    , contributor
    Comments (58) | Send Message
     
    I got suckered into this too. Never dreamed in a million years I would not be able to sell my shares! Obviously lots of holders WERE able to trade, but others could not. Tie the shareholders hands while you tank the stock. Unbelievable.
    26 Jun 2012, 02:28 AM Reply Like
  • ericcatec
    , contributor
    Comment (1) | Send Message
     
    Find out who wrote this article and you'll find out who is behind the scam.
    28 Jun 2012, 02:28 AM Reply Like
  • otcmagic
    , contributor
    Comments (30) | Send Message
     
    Author’s reply » Not true at all
    8 Jul 2012, 08:03 PM Reply Like
  • prudhomm
    , contributor
    Comment (1) | Send Message
     
    Yup, me too. The new shares just transferred into my account today. It's trading at $0.13 per share currently. What a sick feeling watching it free-fall for the last four days. Also my first experience with a penny stock (and likely my last) after being touted by Bollinger. Delete that subscription....
    28 Jun 2012, 03:42 PM Reply Like
  • roywil
    , contributor
    Comments (58) | Send Message
     
    My attorney says a class action suit is already in works but best chance of redress is arbitration vs your broker. Look into it.
    29 Jun 2012, 11:04 AM Reply Like
  • Braggo
    , contributor
    Comments (36) | Send Message
     
    The only way to protect against losses is not to buy these kind of stocks. I`m still short IDNGD at 0,076$ (sometimes two weeks of holidays without internet helps to be patient :-).
    7 Jul 2012, 03:39 AM Reply Like
  • roywil
    , contributor
    Comments (58) | Send Message
     
    Thank you. That was very helpful.
    8 Jul 2012, 02:47 PM Reply Like
  • otcmagic
    , contributor
    Comments (30) | Send Message
     
    Author’s reply » Yes great! You know these highly promoted stocks with no real fundamentals behind them will crash and burn in the end. And its sometimes good not to watch them trade every single minute of every day less you get distracted from you long term strategy.
    8 Jul 2012, 08:02 PM Reply Like
  • JayAaron
    , contributor
    Comment (1) | Send Message
     
    When will we humans ever learn. As they say in Brooklyn, OY VEY!
    Whoever is behind this Bolinger Report ought to end up sharing
    Bernie Madoff's cell and they can take turns screwing one another....
    without lube for the rest of their miserable days.
    7 Jul 2012, 11:28 PM Reply Like
  • javedn
    , contributor
    Comment (1) | Send Message
     
    an expensive lesson ..about the world of pump n dump..
    bollinger report had the b*lls to call me to promote their next stock..wanted to give them a piece of my mind but was at work with ppl nearby...but told the "analyst" your last recommendation was a pump and dump scam and you expect me to believe your next 'recommendation'...he tried to reason with me saying early investors had a good run and it was 1 when they recommended it...etc..
    anyways i guess as otcmagic said, the real lesson is to never believe in long term as far as OTC stocks go...
    9 Jul 2012, 04:57 PM Reply Like
  • padoc1
    , contributor
    Comments (182) | Send Message
     
    otcmagic:
    I'm afraid to admit that I, too, was suckered in by this apparent sham. If I may ask: I'm still holding on to the 750 shares that are my original purchase, this the number after the split that should have alerted me to something rotten. I figure I already lost most all of my five hundred bucks. Does it make any sense to cling to this, or, should I, in your opinion, just kiss it goodbye and free up my money? Also, 'roywil' claims his attorney tells him of a class action suit. Any skinny about that?
    I hope I'm not doing anything improper by asking for your opinion/advice.
    Thanks for your time and consideration!
    26 Jul 2012, 09:42 PM Reply Like
  • otcmagic
    , contributor
    Comments (30) | Send Message
     
    Author’s reply » As far as the class action lawsuit that somebody mentioned, I would not put much weight in that statement. After every one of these big promotions there are investors talking about lawsuits and nothing ever comes of it.

     

    If I held IDNG here I would be looking for an exit strategy to free up my $ for other plays. The chances of an intra-day bounce/short covering rally are good but who know's how far it will drop before that/if happens?

     

    You could either sell here or hold (risking it will drop more) and wait for possible bounce to sell.
    27 Jul 2012, 10:13 AM Reply Like
  • roywil
    , contributor
    Comments (58) | Send Message
     
    Correct that a class action will not yield much relief, if it happens at all. I have, at my attorney's advice, initiated arbitration proceedings vs my broker. Best chance for redress.
    27 Jul 2012, 12:56 PM Reply Like
  • otcmagic
    , contributor
    Comments (30) | Send Message
     
    Author’s reply » Roywil: As I said before I would not get my hopes up regarding a class action but u might see some results; not of ever getting any $ back - the $ is gone - but possibly get the ppl behind this fraud into trouble.

     

    They tanked the stock while all shares were tied up in the R/S about as low and shady as I have ever seen.
    28 Jul 2012, 11:37 AM Reply Like
  • roywil
    , contributor
    Comments (58) | Send Message
     
    I am not involved in a class action and doubt one will ever happen, since the co. has no resources to attach. I have initiated the mediation/arbitration vs my broker thru FINRA. Different matter.
    28 Jul 2012, 01:41 PM Reply Like
  • padoc1
    , contributor
    Comments (182) | Send Message
     
    Otcmagic: Thanks for your considered words. I've already lost 90% of my cost. I suspect I'll just bail and take it as a lesson learned. At $0.038, it certainly doesn't have much to drop!
    And, Roywil, good luck. I certainly don't have so much invested that I'd be paying attorney's fees; so, that ain't gonna happen!
    27 Jul 2012, 10:50 PM Reply Like
  • roywil
    , contributor
    Comments (58) | Send Message
     
    Arbitration or mediation thru FINRA does not require an attorney. In fact I am representing myself. My lawyer says that is best anyway. Only cost is a reasonable administration fee. Well worth it for me. My lawyer thinks the likely outcome will be a settlement before arbitration.
    28 Jul 2012, 01:36 PM Reply Like
  • padoc1
    , contributor
    Comments (182) | Send Message
     
    Ya got me thinkin', buddy. I've a pretty full plate, but I just might try to find the time to at least shoot a line over to them (FINRA.) At least to add my name to whoever else may have complained, perhaps yourself included. This is a pretty lousy deal. If the role of FINRA is, "...to protect investors by maintaining the fairness of the U.S. capital markets," they should be aware of this sneaky lock and split deal. I suspect I'll also mention it to Fidelity, the keepers of my I.R.A. Let's all join the party! I wonder if he's folowing this thread.
    28 Jul 2012, 11:42 PM Reply Like
  • otcmagic
    , contributor
    Comments (30) | Send Message
     
    Author’s reply » Padoc1: Stocks that have fallen as fast as IDNG has tend to bounce. The famous dead cat bounce. Might get .06 or .07 if u wait. Then again it could just keep dropping.

     

    This stock is garbage.
    28 Jul 2012, 11:31 AM Reply Like
  • padoc1
    , contributor
    Comments (182) | Send Message
     
    Thanks, again. I literally have nothing to lose, so I may as well let it ride for now. Like my buddy, Forrest Gump, used to say, "My momma always said, "Life was like a box of chocolates. You never know what you're gonna get."" Maybe, in this case, more like a slab of bad liver.
    28 Jul 2012, 11:49 PM Reply Like
  • iacov
    , contributor
    Comments (2) | Send Message
     
    this action or bankruptcy or gas or oil is worth $ 0.50 and again, without volume and sleep now,
    22 Aug 2012, 12:42 AM Reply Like
  • iacov
    , contributor
    Comments (2) | Send Message
     
    this action or bankruptcy or gas or oil is worth $ 0.50 and again, without volume and sleep now, I leave my mail greetings for news from this company fabiantkd@hotmail.com
    22 Aug 2012, 12:42 AM Reply Like
  • otcmagic
    , contributor
    Comments (30) | Send Message
     
    Author’s reply » Bright Markets the promoters behind IDNG are back with a new IPO; Punchline Resources PUNL
    30 Aug 2012, 10:48 AM Reply Like
  • Clint007
    , contributor
    Comments (555) | Send Message
     
    "There is an unconfirmed rumor going around that PUNL has the same group that did IDNG behind it; if this is the case then this one could be a huge runner in coming weeks. IDNG ran big before they trapped everyone in the forward split! Everybody’s shares were blocked from trading while they dumped it to pennies in one of the sketchiest moves in recent bb history!"
    http://bit.ly/Q4x5Gt
    Note: IDNG will be soon in Gold mining business.
    30 Aug 2012, 12:23 PM Reply Like
  • Clint007
    , contributor
    Comments (555) | Send Message
     
    Oups! for my mistake...
    NOTE: PUNL is now a Gold Mining company. It is call Punchline Resources. http://bit.ly/PRTHdy
    31 Aug 2012, 08:16 AM Reply Like
  • otcmagic
    , contributor
    Comments (30) | Send Message
     
    Author’s reply » Its confirmed now. PUNL is being promoted by Brighton Markets as well as Bollinger Research same ppl as IDNG
    30 Aug 2012, 01:28 PM Reply Like
  • stock dummy
    , contributor
    Comment (1) | Send Message
     
    what can finr or scottrade do to help me recoup some of my losses?
    3 Sep 2012, 03:37 PM Reply Like
  • roywil
    , contributor
    Comments (58) | Send Message
     
    Go to finra.org

     

    Fil lout paperwork for mediation/arbitration, naming Scottrade, Inc. as respondent.

     

    That's waht I did and it's in works.

     

    May not recoup much but it's your only shot.
    4 Sep 2012, 02:46 PM Reply Like
  • Silent_Knight
    , contributor
    Comments (25) | Send Message
     
    What would be the reason for arbitration against Scottrade? I understand what you mean but are you filing the claim against your broker on the basis you were unable to trade your shares as the price dropped? or simply because they allowed IDNG to be listed as a legitimate company when it is fraud? I want to file a claim also but not sure the exact reasoning to put...
    17 Sep 2012, 10:59 PM Reply Like
  • otcmagic
    , contributor
    Comments (30) | Send Message
     
    Author’s reply » People have such short memories. I have been trying to warn everyone to be careful on PUNL and nobody wants to hear it.
    5 Sep 2012, 08:29 AM Reply Like
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