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

mag·da·lene

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.

Alange Energy (ALE.v) hit with a class action suit

Now this is way, way interesting. Remember the great work Setty did in a whole series of posts uncovering the Alange Energy (ALE.v)? Well  this morning the ante has been upped and a decent Canadian law firm has opened a class action suit on ALE.v. If i were you I'd go check out what Setty found on that link above and read the following NR very closely.

On Monday April 18, 2011, 12:11 pm

TORONTO AND WINDSOR, April 18 /CNW/ - A class action has been commenced in the Ontario Superior Court of Justice on behalf of all investors who acquired shares of Alange Energy Corp. ("Alange") during the period August 30, 2010 to and including January 12, 2011 (the "Class Period").  The plaintiff alleges that the defendants engaged in violations of Ontario's Securities Act and the common law.
The plaintiff has retained Sutts, Strosberg LLP to prosecute the class action.
The plaintiff alleges that throughout the Class Period, the defendants misrepresented its daily production of oil that was reported and disseminated to the public.
On January 13, 2011, Alange disclosed that it overstated its daily production of oil by as much as 39 per cent.  After the disclosure, Alange's share price declined by more than 37 per cent on trading volume of more than 100 million shares.
Jay Strosberg, a partner of Sutts, Strosberg LLP said, "The question that is being asked is how could a company with experienced management so significantly overstate the amount of oil that it was producing?"
Sutts, Strosberg LLP pioneered securities class actions in Ontario.  As a result of resolving class actions such as YBM Magnex, Southwestern Resources, Atlas Cold Storage, CV Technologies and NovaGold Resources; Sutts, Strosberg LLP has recovered more than $150 million for its clients in securities class action alone.  Please visit the Sutts, Strosberg LLP website www.strosbergco.com and www.aleclassaction.com for more information about the Alange class action.

Contacts

Jay Strosberg  
Sutts
Strosberg LLP 
519.561.6285 or 1.800.229.5323
ext 8285                                                                           
jay AT strosbergco.com

DYODD

Calling BS on Pacific Rubiales (PRE.to)

Setty does it again with a top post on Pacific Rubiales (PRE.to), Colombia's biggest private oil company and purveyor of bullshit numbers to the market. You just have to read the whole thing over there cos there are dynamite facts and snippets all through the article, but here's a section to whet your appetite for the corporate Shenanigans as exposed.

"...reading through the last few weeks’ news, I don’t see anyone saying publicly the three things that were most completely screwed up about this situation. 

1. The company giving 220,000 barrels a day as their figure for year-end oil output as late as February, even though they should have known a month earlier that the number was fiction.

2. Board members front-ran the bad news with millions of dollars in stock sales, during a period when they should have known about the bad news to come.

3. Executives are refusing to buck up and accept responsibility for missing on oil output and reserves replacement.

So go read "Pacific Rubiales (PRE.to): like Alange, but bigger" right now. Super Sunday fare and kudos to the Settydude.

The definitive Alange (ALE.v)

Owwww...a KILLER post by Setty on Alange Energy (ALE.v) today. Go read, must read.

Mo' Alange Energy (ALE.v)

Setty keeps on the ball with the unfolding ALE.v trainwreck and the downfall of its CEO Luis Giusti, a man whose company personnel believe holds a "sign of honour" because he was booted out of PDVSA by Chavez. Has it occurred to you that he might have been booted out of two jobs for being a bullshitter, not just one?

Anyway, Setty's post is cool because he even gets in a dig about that huckster and BS artist supreme, Thom "not-guilty-of-securities-fraud-because-the-SEC-and-I-settled-out-of-court" Calandra. Go see.

Alange Energy (ALE.v)

If you want to know why Colombia-based O&G junior Alange Energy (ALE.v) has a stock price that's doing this today....

 oooh, nice volumes!

...you'd do well to start with its NR out this morning. But if you really want to find out what's going on, check out Setty's excellent post on ALE.v right here that explains all and more. You'll understand far more in less time than trudging thru the ALEspin...and most importantly, Setty's got an owl. Go see a real classic example of a Canadian junior trying to bullshit its way out of a hole.

UPDATE: Setty runs a second post, gets comment from the company, makes them look silly again. The old phrase "when in hole stop digging" doesn't seem to have filtered through to those at ALE.v. All in all, there's something rather strange bout this one methinks. And great job of work, Settydude.