Wednesday, July 20, 2011

21st century evidence that Magdalenes still practice the world's second oldest profession

noun /ˈmagdaˌlēn/  /-ˌlin/
magdalenes, plural
  1. St. Mary Magdalene

  2. A reformed prostitute

  3. A home for reformed prostitutes

A classic tactic of market scoundrels is to change the name of your company when it's all gone pear-shaped, presumably in the hope of suckering in a whole bunch of new sheep in the future...y'know, the ones who can't be bothered (or simply don't have the brainpower) to do basic of DD. Another symptom of failure is the share rollback, when a company will reverse split a rapidly falling PPS in order to make things look better and "attract institutional shareholders"....y'know, the ones with basic rules about not buying pennycrapper dogs (for obvious reasons).

So when you see a company run by rather iffy and most certainly self-serving individuals announce a name change and a rollback in a disaster of a junior O&G, it's time to unfurl those red flags at IKN and wave 'em in your face. Here's Reuters take late last week (when your author was on the road) on how Alange Energy (ALE.v) no longer exists and PetroMagdalena (PMD.v) is the new name for Serafino Iacono's unmitigated snafu.

UPDATE 1-Alange Energy sets reverse stock split, to change name

Fri Jul 15, 2011 5:20pm EDT
* Sets one-for-seven reverse split of common shares, warrants
* To change name to PetroMagdalena Energy Corp
* Consolidation, name to change effective July 19 (Follows Alerts)
July 15 (Reuters) - Canadian oil exploration company Alange Energy Corp said it will effect a one-for-seven reverse split of its common shares to reduce volatility and to make the stock more attractive to institutional investors.
Toronto-based Alange will also consolidate its listed warrants on a one-for-seven basis, it said in a statement.
The company said it will change its name to PetroMagdalena Energy Corp, and that the shares and warrants will start trading on a post-consolidation basis from Tuesday under the symbols "PMD" and "PMD.WT".
Shares of the company closed at 21 Canadian cents on Friday on the Toronto Venture Exchange. (Reporting by Mayuresh Tungare in Bangalore; Editing by Joyjeet Das)

A home for reformed prostitutes, eh? The only doubtful word in that definition is 'reformed'. Anyway, if you want to know more about the bullshit that Alange ran on an unsuspecting public, go check out Setty's coverage of the stock, because it's unbeatable. Start here, go here and here and then find even more at his site...all great stuff

Mojitos served, the end.