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Stocklemon reports U.S. Canadian Minerals, Inc.

Posted in Citron Reports by CitronResearch on the October 15th, 2004

“Diamonds are Forever”, but Stock Promotions “Die Another Day”

Stocklemon Reports on U.S. Canadian Minerals, Inc. (OTCBB:UCAD)

The Harsh Facts

Market capitalization $100 million or $300 million, depending on whose outstanding share count you believe.

Cash-  $1,321.00 – that is One Thousand Three Hundred and Twenty One Dollars as of last SEC filing on 8/23/2004.

Revenues- 0

US Canadian has a Going Concern Letter From Auditor

“Nothing From Nothing Leaves Nothing”Billy Preston

The business of UCAD has been a slew of convoluted deals and swaps with virtually worthless pink sheet companies.  Mines and money have been swapped between them all . but it still leaves shareholders with no real value.  The mines have no proven success; you can shuffle worthless entities around all day long, but at the end of the day … you still end up with nothing, regardless of share price.

Possible SEC Violations

Stocklemon believes that that U.S. Canadian Minerals, Inc. is delinquent in submitting 8K’s to the SEC that would allow both the regulators and investors to better understand the potential funding and businesses of the company.  But then again, why explain when you can confuse?

The below link references the regulation defining when filing an 8-K is requried, and describes the triggering events in detail.  Readers will find that UCAD is delinquent on events described in many of its recent PR’s.  (The SEC requires these forms to be filed within 4 business days of the triggering event.)

 

http://66.102.7.104/search?q=cache:6umxiXVcBQIJ:www.sec.gov/about/forms/form8-k.pdf+form+8k&hl=en

 

8/20 secures funding agreement .no 8-K
http://bigcharts.marketwatch.com/news/articles.asp?guid={89175F13-C340-42F7-897D-A2F3D3508852}&newsid=818153301&orig=&time=&symb=UCAD&sid=1648027&source=htx\http2_mw

9/8 release about 3 mil in funding. no 8-K

http://bigcharts.marketwatch.com/news/articles.asp?guid={E54C7D88-A3E5-4275-A05B-2952BFE3B4DD}&newsid=819970894&orig=&time=&symb=UCAD&sid=1648027&source=htx\http2_mw

Timetable for funding.no timetable and no 8-K
http://bigcharts.marketwatch.com/news/articles.asp?guid={E8502E7F-C7A5-4662-8D4C-A7C39E0B377D}&newsid=822581645&orig=&time=&symb=UCAD&sid=1648027&source=htx\http2_mw

8/19 share purchase agreement.no 8-K
http://bigcharts.marketwatch.com/news/articles.asp?guid={6664D86B-EDA6-45CF-B07F-E2FA318DD73A}&newsid=818102413&orig=&time=&symb=UCAD&sid=1648027&source=htx\http2_mw

John Edward Dhonau

The largest shareholder of UCAD is a man named John E. Dhonau, or as he has sometimes gone by, Edward Dhonau.  These are a list of the previous companies that Mr. Dhonau has been either an officer/director or a consultant to: 

PYBS-  .03

FDNN-.0002

VEII-   .115

CYGX-.255

In one of his bios filed with the Securites and Exchange Commission it states, “From March 1995 to January 1997, Mr. Dhonau served as president of World Class Network (WCN), a private company, which developed hotel tour packages.”

Certainly Mr. Dhonau can not be proud of that.  The following links show the massive consumer fraud that was perpetrated by World Class Network.

http://www.mlmlegal.com/ftcwcn.html

http://www.cnn.com/TRAVEL/NEWS/9703/13/ftc.scams/

That was not Mr. Dhonau’s first foray into consumer fraud.  He was sanctioned by the State of Ohio Securities Commission for selling unregistered securities.  Please read the below link to see what the State of Ohio had to say about Dhonau.

View Document  

Management- Lots of Stocks . but where is the success?

Rendal Williams

CEO Williams used to be the CEO of Barrington Foods.  After failing at Barrington in his soy product venture, we are now supposed to believe that he is a competent CEO of a mineral company.  We encourage all to listen to the interview with Rendal on www.thegreenbaron.com to hear how amateurish he sounds.  As far as Stocklemon is aware, Mr. Williams has no successful business experience.

John S Woodward

Mr. Woodward, president of UCAD, is an inactive California attorney who also serves as president of CYXG (.22 cents)

Richard Taulli

Mr. Taulli is the COO of UCAD.  He has also been affiliated with BIBO (.0032) ORTE (.78) GEMM (.086) and NNOS (.018)

Basic Investors Inc. (Market Maker BSIC)

Basic Investors out of Long Island seems to be one market maker that is overly active in this stock.  As a matter of fact, for the year to date Basic has traded almost twice as many shares of UCAD as the second most active market maker, and roughly as many as all the other market makers combined.  Considering most OTCBB trades require two market makers, this means that BSIC has been on one side of virtually every single stock trade of record for UCAD.

http://www.otcbb.com/asp/tradeact_mv.asp?Issue=ucad&searchby=issue&sortby=volume&Month=7-1-2004&downloadname=mv200407.exe&view.x=0&view.y=0

Many times, it seems as if Basic is trading in ways that can be considered “out of the realm of normal trading”

What makes this interesting is that Basic in only this active in one other stock.  CYXG.¼br /> http://www.otcbb.com/asp/tradeact_mv.asp?
SearchBy=issue&Issue=cyxg&SortBy=vol
ume&Month=7-1-2004

Funny enough, CYXG has the same president, John S Woodward, and the same large shareholder, John Dhonau as does UCAD.

Basic Investors Inc has a responsibly to know their client according to the “Know Your Client” NYSE Rule 405.  They are required to use due diligence to learn the essential facts relevant to every client. 

It is the opinion of Stocklemon that the price of UCAD is being manipulated by the market making activities of Basic Securities.  We believe that they are representing an individual or group that is related to an insider and fails to file the necessary forms.  A copy of this report has been forwarded to the NASD.

Langley Park Investments

US Canadian has put out press releases about their financier being approved for trading in the UK.  Before shareholders get too excited lets us look at a few facts.

1. Langley Park has not committed any money to the company.

2. UCAD has not filed an 8k discussing this relationship.

3. The assets of Langley are nothing but a is a virtual mutual fund of non-profitable and broken down Over The Counter and Pink Sheet stocks.  Below is a list of companies that have signed similar deals with Langley Park.  This is the company that UCAD hopes to keep.

ABRM, VTLV, QTEK, MTNA, BVLEE, GDVI, NTRZ, HBSC, IMNL, CRLU, NTRZ, HBSC, ONMH, GAXY, DRVW, and FRVEF.

None of these companies are profitable and the majority of them have 0 revenue.  A share swap is another form of nothing from nothing leaves nothing.

VERY IMPORTANT CONCLUSION

Stocklemon does not have the intention to damage any shareholder.  Quite the opposite, Stocklemon hopes to save shareholders money by warning the uninformed investor of potential frauds and problems in publicly traded stocks.  Our files are stuffed with regretful “thank you” acknowledgements from investors duped in stock promotions we have previously researched.

Often investors get caught up in the hope of reaping a fortune in the drama of a rapid run up of a low priced stock.  But if the underlying company has no tangible assets or revenue to underlie the company’s valuation as reflected in its market capitalization, then the enterprise is a Ponzi scheme in action.  The stock price runup is dependent on new investors’ money to replace any investors cashing out, and when the inevitable torrent of insiders shares hits the market, the price collapses and the hard reality of a zero-sum game hits home once again.

We are aware the CMKX has a large shareholder base and we respect people who invest their hard earned money in the markets.  Yet, the stock market is not a get rich quick scheme and investors should do substantial due diligence before ever buying a penny stock.  Remember, if you can’t bet on the horse, bet on the jockey.  In this case the jockeys do not have an investment grade track record.  Please take this report as a respectful warning to all of you who might spend your hard earned money buying this stock.  As always, cautious investing to all.

 


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