What Southridge Means For Coates International Ltd. (COTE)

Penny stock traders have flocked to the subbies each and every summer almost like how the Canadians head down to Florida each and every winter.  Summer trading is profitable for those who can be involved with the right groups, be diligent news scanners, and, well, simply put, have the ability to fall into a pile of crap and come out smelling like roses on more occasions than not.

A month ago, the action was on Coates International Ltd (OTC: COTE) after the company that has been developing their patented Coates Spherical Rotary Valve for over 2 decades announced that “the most advanced internal combustion engine in the world” was ready to hit the production line.  Within minutes, shares of COTE stock were atop every traders list of tickers to watch for an entry as the “tens of millions of dollars” the company was saying were due to be thrown at them was a definite catalyst to send the stock price surging.

 

COTE Chart

 

The volume on day one of the announcement, June 2, was historic as shares of COTE stock surged from 0.002 to over 0.15, placing the excited ticker on the top of the gainer list and on everyone’s “I wish I knew about that last week” list.  Since then, trading the ticker has not been as beneficial to non-frontloaders as it was for the “under 0.002” crowd, but shares of COTE were able to rebound at the start of July to revive some life back into it.

Coates International had some answers to address after the share price dipped, some of which had to due with the company announcing a $20 million equity agreement with Southridge Partners II LP.  The addressing and follow up to such huge monetary claims was almost comical since there also needed to be addresses how “Brokerage Industry is Disseminating False Information” about COTE.  The claim would seem to be shocking since why can’t a company with $72,000 that already owes $7.1 million, but generated $5,000 in revenues, not be able to have discovered a way to take their 2 decade long idea and get paid for it?

A good reason for why COTE shares were able to rebound from their July lows was due to these public addresses and their “coddling” of shareholders who really wanted to believe that pigs could fly, there is a tooth fairy and holding shares into December would bring more presents than Santa Claus could carry.  All any shareholder needed to do was to be patient and allow the a) electric power generator they received a down payment for to be delivered by the end of the month; b) wait patiently for revenues since Coates wouldn’t be able to book any until the testing had been completed; and c) read the longest ever headline in the history of subpenny stocks and “believe”

Coates International, Ltd. Re-Filed Its S1 Registration With the SEC on July 15, 2015, in Reference to an Equity Credit Line With Southridge Partners II LP for up to $20,000,000 That Will Be Utilized Over a Period of Three Years to Ramp Up Production of CSRV Products in the USA — The Most Advanced Internal Combustion Engine in the World (View Them on www.coatesengine.com)

Looking back into previous deals, Propanc Health Group Corporation (PPCH) did a $5 million deal with Southridge Partners in 2014 and that stock has played nice this year , but was skid marks on a bloddy pair of tiddy whities during 2014.  Western Graphite Inc. (WSGP) was another $5 million recipient back in 2014 which has been one big wet fart with less good days than a chronic diarrhea sufferer confined to a Taco Bell in the 3rd world.

If PPCH and WSGP don’t sell the sizzle that COTE is doomed, check out Texhoma Energy Inc. (TXHE) who signed an LOI with the group for up to $10 million a year ago.  That POS is trip zero one now.

Or perhaps the $10 million Green Endeavors, Inc. (GRNE), a majority owned subsidiary of Nexia Holdings, Inc. (NXHD), was getting in 2012 might be a different story.  Nope.  The only green GRNE has seen has been in its company name.

So, where you trade and how you hold onto COTE shares is obviously the choice of the shareholder. If history with Southridge Partners proves anything at all, it’s probably best you hang up your COTE before you lose your shirt.

 

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