|Shares Out. (in M):||66||P/E||0.0x||0.0x|
|Market Cap (in M):||119||P/FCF||0.0x||0.0x|
|Net Debt (in M):||0||EBIT||0||0|
Chimera Energy Corp is a pump-n-dump fraud with $116,478 in assets and a $120 million market value. Short every share you can find.
Chimera possesses a self-proclaimed “brilliant” technology that enables oil and gas well fracking without the use of any water or chemicals. They call it “exothermic” technology. How does it work? Well, according to Chimera, it uses “extreme heat caused my metal oxide exothermic reactions in conjunction with ultra-expansive evaporates.” I mean, duh. The technology was developed in China and Chimera exclusively licenses it for the princely sum of $5,000/month. For a detailed explanation, I would direct you to the company’s informational video.
I’ve seen my fair share of dumb oilfield technology companies (Particle Drilling, Gasfrac, etc…one company actually wanted to frac reservoirs with nuclear weapons) but this is a whole new level of silliness. This isn’t merely a dumb idea that’s destined to fail, this is rubbish to the core. Their technology heats the rocks with "oxides". Then the heat creates fractures in the reservoir, which can be filled with a proppant of your choice (Chimera recommends using pumice, which is like going to Alinea and ordering a Mad Dog 20/20). Also, in case you’re wondering what oxides are, the actual definition is, “any compound of oxygen with another element.” Glad that narrows it down. None of it makes any sense and even if it did, unless it’s got Schlumberger or Halliburton’s name on it, E&P’s just don’t use wacky new techniques like these. So even if this works, it wont work. By the way, I will answer all question on this writeup with the simple one word response: “Oxides.”
Chimera was founded last year by Charles Grob, a 31 year-old nobody. Admittedly, I don’t have any dirt on him, but Chimera is so awful it doesn’t matter. He lasted two years at Waddell & Reed after college. Then he became an insurance salesman. Since 2009 I don’t have any idea what he’s been doing although I did confirm he received his MBA for Houston University.
Charles purchased his stock for $10,000 last year and today it’s worth $72 million.
Chimera acts as its own transfer agent, a common method of scams that allows the companies to issue and sell as much stock as they can.
Chimera is audited by LBB & Associates Ltd, accountants to such other pump-and-dumps as Jammin Java (see past VIC writeup), Big Bear Mining (BGBR), Elray Resources (ELRA), and Blackhawk Exploration (BHWK). They have a history of deficiencies. At least they had enough common sense to issue Chimera a going concern notice.
Chimera’s counsel is The Loev Law Firm, scheisters to such other scams as Petron Energy (PEII), China Daqing M&H Petroleum (CHDP), and almost too many other penny stocks to count.
Chimera has a single employee – its founder – who is presently able to devote “10 to 25 hours per week” to the company. Keep working on that handicap.
Chimera’s audit, legal, SEC reporting, and printing expense is estimated to be $20,000-25,000 per year.
Chimera borrowed $100,000 from a firm called Kylemore Corp. I cant find much on Kylemore, but when asked by the SEC to describe the nature of Kylemore’s business, Chimera chose the unusual language, “we have reasonable belief that Kylemore is an asset-based lender.” (emphasis added) This is common among frauds.
Recently, the pump IS ON. Gotta get that stock moving!
This is actually a halfway decent pump-n-dump. They’ve found a hot-button issue and are furiously marketing it through banner ads on homepages of sites like the WSJ and MarketWatch, among others. Their website doesn’t look completely bogus and their informational video even uses some computer animation. Someone’s put some money into all this, but rest assured it’s going down. In conclusion, oxides.
The author of this posting and related persons or entities ("Author") currently hold a short position in this security. The Author makes no representation that it will continue to hold positions in the securities of CHMR. In fact the Author is likely to buy or sell long or short securities of this issuer and makes no representation or undertaking that Author will inform Value Investors Club, the reader or anyone else prior to or after making such transactions. Additionally, because the Author has these current positions the reader may assume that the Author is biased in favor of his investment view and may also be mistaken. While the Author has tried to present facts it believes are accurate, the Author makes no representation as to the accuracy or completeness of any information contained in this note. The reader agrees not to invest based on this note and to perform his or her own due diligence and research before taking a position in securities of this issuer. Reader agrees to hold Author harmless and hereby waives any causes of action against Author related to the above note.
|Entry||08/10/2012 10:30 AM|
Has the law firm or auditor ever been investigated by one of the inept government agencies? If you could build a short position, what do you think about handing a gift-wrapped investigation to the SEC or some other agency that could use a check mark in the plus column?
|Subject||Utah: great work|
|Entry||08/20/2012 09:52 AM|
I couldn't find any to short, but have gotten great entertainment value out of this one. Today's press release is excellent fun, attacking the Naysayers who have driven the stock down, and capitalizing the word Naysayers in mid-sentence.
The depressing thing is we all know that the promoters have already made millions, and the worst fate in store for them is maybe, and perhaps even not, in a few years they will have to sign a paper promising not to do it again.