Since advancing more than 4,000% on more than 685 million shares traded and hitting a recent high of $.075 during the four days between 6/18 and 6/23, Quest Minerals & Mining Corp. (OTCBB: QMNM) has dipped back into the $.005 range.

Due to the high volume of important corporate developments transpiring over the past few weeks, I felt it prudent to get on the phone with the company’s CEO Eugene Chiaramonte, Jr. this past Friday and get his take on the situation. I’ll touch on that in a moment. But first, let’s take a peek at the what’s been happening at Quest.

In regards to the major events recently transpiring at Quest:

1. The company’s wholly-owned subsidiary Gwenco Inc. recently filed an updated plan for re-organization in accordance with its Chapter 11 bankruptcy proceedings and is awaiting a judge’s decision on 9/16.

In addition to achieving profitable production levels, this has been identified by investors, small and large, as one key driver of current and future stock price. I’ve spoken with many people personally of the firm belief that simply by having its subsidiary proceed out of bankruptcy, Quest would instantly demand a more favorable valuation in the market due to the decreased risk it would create; and

2. Their Pond Creek, KY, coal mine recently re-commenced production after making a number of equipment and infrastructure improvements.

The Quest Guessing Game
Simply put, predicting the stock’s daily performance has proven to be one of the biggest guessing games in recent micro-cap history.

For example: on 6/20 QMNM gained more than 160% on nearly 161 million shares traded on news that the company was rapidly approaching production at its Pond Creek, KY coal mine. On 8/1 Quest officially entered into full-production and raised production goals at the mine. The stock gained only 22% on just 18 million shares.

Quest CEO Optimistic Regarding Re-org Proposal
Per my conversation with Eugene, the CEO seems pretty confident that his reorganization plan will be accepted by the judge this week. However, a bit of digging online reveals that at least one past creditor has objected to the plan proposed by Quest’s wholly-owned subsidiary, Gwenco Inc. Since I did in fact discover the objection subsequent to my conversation with the CEO, unfortunately, I can’t provide his take on it. I will however attempt to reach him on Monday and post my finding on the blog.

In regards to the objection, although I’m not a lawyer, I’d guess that having at least one party object to re-org plans is fairly commonplace for a typical bankruptcy proceeding. Everyone wants their money first and in full and that can’t be a reality for all unfortunately. I guess the judge will have the final say here are well have to wait until Tuesday or Wednesday to learn of the outcome. Let’s keep our fingers crossed!

Pond Creek Mine Improving. Slowly But Surely

According to Thursday’s PR, the mine shipped 35 trailers of coal holding 42 tons apiece to its to its wash plant for processing between 9/8 and 9/9 for an average of 700 raw tons of coal per day. The release goes on to state that the company is getting close to completing a turn which will land them on the full face of the mine’s coal seam. Furthermore, my conversation with Mr. Chiaramonte on Friday leads me to believe that, pending no further hold-ups, this will be achieved sometime next week and when it does we will be looking at more like 1,000 raw tons per day initially with substantially higher coal acceptance rates.

What would really put my mind at ease would be an updated production report that notes both raw tonnage produced and the reject rate, possibly pertaining to the time period between 9/8 and 10/8. After speaking with Gene, I’m confident that such a document will indeed surface by mid-October.

Reorganization Reports Reflects a Loss for July/Aug

According to Gwenco’s recent reorganization proposal, the subsidiary logged total gross profits of $15,810 on $117,808 in sales during July and August. From a bottom line perspective, the operation best become more efficient, quickly.

Gwenco posted a negative net income of $474,403 on sales of $117,808 for the two month period. Hopefully, their reject-rate and daily tonnage output improve as the mining crew approaches the main coal seam. Management believes that it will, so, let’s see what future reports reveal. For now, I’m willing to reserve judgment until the company enters into full-production mode at the main seam for at least a few weeks.

Per Ton Sale Price Must Improve

According to Gwenco’s contract with White Star Mining, the miner is entitled to $32 per clean ton. $32 per ton divided into the two-month total of $117,808 brings us to a figure of 4,471.6 tons mined.

Further, a little back of the napkin math reveals that Gwenco also pays Happy Trucking roughly $6 per ton for transport:($26,716 in 2 month trucking fees/4,471.6 tons of coal = $5.97). A little more simple math shows that Gwenco’s average price per ton during July and August was approximately $26.40: (4471.6/32 = $26.40).

So, in essence it costs Gwenco $38 in mining and transportation to sell one ton of coal at $26.40 for a loss of $11.6 per ton. For the sake of today’s discussion, let’s assume a reject-rate of 70% during the aforementioned 2-month reporting period. That would equate to 14,905.3 raw tons mined. In theory, if Quest can bring its reject rate into the 30% – 50% range and begin producing higher quality coal – which management indicated is a distinct possibility once the main coal seam is accessed – they could turn Pond Creek into a very profitable mine.

Net-Net

This coming week will be one of the most important in Quest’s existence. If the judge does in fact accept the reorganization plan and allow Gwenco to proceed out of bankruptcy, we should see interest in the stock pick up. We could also see momentum build if the company graces us with an announcement regarding it hitting the main coal seam at Pond Creek, increasing daily output and producing higher quality coal than it has to date.

If you’re interested in the company, here’s my suggestion: take the time this weekend/early next week to weigh the risks of gaining an ownership position in the stock today versus after the BK decision and potential production update. On one hand, the judge could rule against Quest and operations will be forced to cease. On the other, the good news could incite another explosion in both daily volume and PPS. Now priced at $.005, the risk is rather low at one penny for every two shares purchased. You make the call, folks. Hopefully our analysis and links to important corporate documents help your cause.

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GoldSpring, Inc. (OTCBB: GSPG) has popped up on our radar screen this week due to the intense trading volume in its common stock. The miner of precious metals (mainly gold & silver) has traded more than 671 million shares over the past 22 market sessions and gained quite a bit of notoriety along the way.

The stock currently trades in the upper echelon of its 52-week range of $.0004 – $.0065 with just over 3 billion shares outstanding and a market cap of 128.22 million. Goldspring gained nearly 20% this week on 101,329,399 shares traded, hitting a intra-week high of $.043 today before closing at $.0425.

Risk Vs. Reward

As we all know, the most fundamentally sound stocks aren’t always the ones that thrive. However, a quick glance at the company’s financial reports reveals that GSPG does in fact leave quite a bit to be desired from an operational standpoint.

I’m not saying that there’s no upside potential here folks, but with negative net tangible assets of more than $17 million, zero dollars in revenues and a negative net income of approximately $2.5 million at the end of their most recent quarter, Goldspring has yet to generate any cash from its precious metal properties.

Test-Drilling Results Look Positive

According to the company’s most recent 10Q filing on 8/8, GSPG’s long-awaited test drilling program commenced in December 2007 and provides substantial hope for its future. Initial 3rd party assays on 38 of Goldspring’s drill holes back in June revealed the following:

A resource of 4,926,000 tons grading 0.080 ounces per ton gold containing 392,000 ounces at a cutoff grade of 0.030 ounces per ton, highlighted by a 930,000 tons grading 0.209 ounces per ton gold containing 194,000 ounces of gold using a 0.100 ounces per ton gold cutoff grade.

With Gold now selling at $775 an ounce, these findings are quite promising indeed, although no gold has been mined to date.

Look out for the Convertible Debt!

A very interesting topic brought up in the most recent Q is the potential danger that one investor and his affiliates own more than 21% of GSPG’s voting stock and can, with 61 day notice, waive their 4.9% ownership restriction and convert 100% of their convertible debt – now more than $8.5M – into common shares. At today’s closing price, that would equate to more than 212 million shares, or about 2/3’s of the volume over the past 22 trading sessions.

Net-Net
Despite being severely under-capitalized, having way too many shares on the market, and posting ugly financial reports to date, Goldspring is located on one of the most attractive precious metal mining properties in the world.

If the company can push forward into a second stage of exploration and production, current levels will surely represent an attractive entry point. However, for now, I wouldn’t suggest rushing into any investment decision here without conducting some extensive due diligence on your own behalf.

I’ll do some more digging here and also attempt to reach management for a more in-depth view into GSPG’s business plan. For now, since the stock has traded like a madman over the past month, but remained relatively flat in regards to PPS, I’d look for a move past $.0435 as a very bullish sign. Until next time, folks. Have a great weekend!

Did you know that indoor air quality is one of the top five threats to your health? Recent reports out of the U.S. Environmental Protection Agency (EPA) confirm the dirty truth.

In today’s edition, I’ll touch on the topic of indoor air pollution as well as portfolio favorite Zevotek Inc. (OTCBB: ZVTK), a company with a solution and plans to check out of Las Vegas at the end of this month with millions of dollars in sales.

Did you know that indoor air quality is one of the top five threats to your health? Recent reports out of the U.S. Environmental Protection Agency (EPA) confirm the dirty truth. In today’s edition, I’ll touch on the topic of indoor air pollution as well as portfolio favorite Zevotek Inc. , a company with a solution and plans to check out of Las Vegas at the end of this month with millions of dollars in sales.

Your Living Room Could be More Polluted Than Downtown LA

Research indicates that despite massive media focus on smog and coal plant emissions, indoor air can at times be up to 5X more contaminated than outdoor air. It’s hard to imagine, but the air in your living room may be dirtier than that of downtown LA, even though you probably can see your hand 6 inches in front of your face in there.

In today’s edition we’ll take a look at one of our portfolio companies poised to drastically reduce indoor air pollution and make the world healthier, one room at a time. But first, let’s take a quick look at what exactly makes indoor air pollution responsible for nearly 3% of the global burden of disease.

Quote of the day: “All you need is ignorance and confidence and the success is sure.” – Mark Twain

Enter the IONIC BULB

Besides the obvious – tobacco smoke – one of the primary culprits in the ongoing indoor health crisis is volatile organic compounds or VOCs. Reportedly 10 times more prominent indoors than out, VOCs are emitted by literally thousands of household products including some that may surprise you. In addition to pesticides and cleaning supplies, they are also discharged by everyday office equipment such as copiers and printers as well as permanent markers. But don’t go throwing your laser jet or Marlboros out, there may be hope for you just yet.

One viable solution to the world’s worsening indoor air pollution problem is the IONIC BULB offered by Zevotek Inc.. According to Zevotek (3-month chart to right), its revolutionary product is 4 times more energy efficient, lasts up to 10X longer, and uses 50% to 80% less energy than the traditional incandescent light bulb. It also comes equipped with a patented air purifying microchip ion emitter that is powered by the bulb’s own energy. The bulb silently emits negative ions that help clear the air of smoke, dust, pet dander, and odors.

Will Zevotek Leave Vegas with $5 Million?

CEO Adam Engel was quoted in today’s release as saying that he believes exhibiting at the Vegas ERA show will yield unit sales of no less than 500,000 units. Even at $5 – waaaay below retail price - that would equate to $2.5M in sales or more than 7X last quarter’s revenue. As an investor, that’s a major development. Since I’ve never come home from Vegas with anything more than a headache and lint in my pockets, I’ll be quite impressed if Adam can make good on his promise.

Functions of the Bulb

For the sake of today’s discussion, let’s take a look at the airborne contaminants the IONIC BULB helps eliminate and their impact on both indoor air pollution and our health.

Tobacco Smoke – In addition to emitting VOCs, tobacco smoke is a leading contributor to Cancer and Asthma. It is also reportedly a leading contributor to Sick Building Syndrome (SBS), defined by the EPA as situations in which building occupants experience acute health and comfort effects that appear to be linked to time spent in a building, but no specific illness or cause can be identified. I’ll pass on that one, thanks.

Pet Dander – According to the Asthma and Allergy Foundation of America, 6 out of 10 Americans are exposed to dog or cat dander. Since pet dander can remain for months after an animal leaves a dwelling, it’s extremely important to zap the allergens as they are released. Since I can’t even be in the same room as a cat, I may have to keep a bulb on hand just in case I happen to have the opportunity to spend the night at the home of a female acquaintance sporting a herd of kitties (wishful thinking, I know).

Dust- According to the Ministry of Agriculture Food & Rural Affairs in Ontario, Canada, there are 3 categories of health effects brought on by exposure to dust: temporary damage, insidious respitory system damage (bronchitis, occupational asthma), and permanent lung damage. Dust makes me sneeze uncontrollably, another reason why I have one of these bad boys in every room of my dwelling (I admit, they’re freebies, but still.)

Where’s the News?
Since I am both the editor of this website and the lucky guy that gets to field investor calls for Zevotek, I’m quite aware of the company’s lack of corporate announcements during the summer months. With Fall now ramping up, my recent discussions with both CEO Adam Engel and the developer of the Ionic Bulb, Jason Ryu, lead me to believe that more positive developments such as today’s are on the horizon.

In my opinion, Zevotek’s primary goal at this point in time – besides selling some darn bulbs – is getting their infomercial aired on television and developing the capability to field orders through their website. With the product now being sold in Walgreens and tested in CVS, Zevo definitely needs to begin pushing consumers into the story as opposed to having them stroll on in to their local drugstore and stumbling upon this cool little product. I’ve relayed my opinion to Adam and he’s seemed pretty receptive. So, let’s keep our fingers crossed here folks.

What about the Stock?

In all honesty, it hasn’t been pretty. Since the reverse stock split (5-day chart to left) and increase in authorized shares, share price has decreased dramatically. Despite a 200% gain on Tuesday which propped the price up to $.06, shares have steadily lost value on relatively small volume.

Here’s my take, the revenues logged during the most recent reporting period, which was in fact the first quarter of Ionic Bulb sales, were pretty impressive, all things considered, at about $348K. The product is now being tested at CVS and could lead to some solid sales if accepted and stock in their 6,000 plus stores. Also, the company has not yet aired its infomercial or added e-commerce capabilities to its corporate website.

In my opinion, if they can access the funding or in fact make enough through product sales this quarter to launch the aforementioned strategic initiatives, there’s quite a bit of upside potential to consider from an investment standpoint going forward. I’d be on the lookout for announcement of this caliber and quite honestly, today’s could be just that if the CEO’s aspirations come to fruition.

Quarterly financial reports should be out in a month or so and that will give us all a better idea of how business is progressing. The company also noted today the belief that presenting at the Vegas ERA show will yield about 500,000 units worth of sales. At ten or eleven bucks a pop, that translates into more revenue than the previous quarter without CVS or Walgreens sales and also some funding to get the ad spot aired.

Net-Net

After a long silent period, Zevotek is back in the news today with a development that holds the potential to transform the business into a much larger competitor. If the company can in fact use the funds made through sales of 500,000 units to air its already filmed infomercial, we could be in for a very eventful Fall. In the meantime, I’ll be watching the stock closely this morning as news like this should create some momentum in the market at the very least. Until next time….

As I was searching the web for viable coal plays this morning I stumbled upon Puda Coal Inc. (OTCBB: PUDA). At first glance, the company appears to be a very compelling play on China’s ongoing industrial revolution.

Puda - which has logged net income of $10.8M on revenues of $193.4 over the trailing twelve months – is a Chinese coal washing company that provides high quality coal to the region’s booming construction industry. Working exclusively through their 90% subsidiary, Shanxi Coal, Puda capitalizes on the lack of adequate coal cleaning infrastructure currently present in many Chinese coal mines and grew annual revenues from roughly $52M in ‘05 to more than $165M in ‘07.

By establishing facilities in Liulin County, Shanxi Province – often referred to as China’s “King of Coal” – and securing preferred supplier contracts with leading local coal mines, Puda is able to access a high volume of high-quality raw coking coal. This type of coal, in addition to having the highest processing yield and lowest processing cost of any Chinese coal, is also in high demand by the nation’s thriving steel industry.

In regards to the company’s recent expansion, financial achievements aside, Puda has expanded its coal washing operations from 500,000MT to 3.5 million MT per year through the buyout of 3 facilities since 2005.

Currently, there are 105.25M shares outstanding according to quote media and the company has a market cap of 35.79M. The stock is trading at $.34, $1.84 off of its 52-week high. Initially, as I mentioned before, Puda Inc. appears to be an interesting and compelling play on China’s growing thirst for coal.

I’m going to do some more digging here and will update everyone on what I find in the coming hours/days. But for now, why not roll your sleeves up and begin conducting some due diligence of your own on PUDA? Feel free to let me know you thoughts on this one, folks.

As a tech hungry male I am always looking for the latest and greatest gadgets to add to my pocket or home and more importantly innovative developers to add to my portfolio. However, most companies this year are doing horrendous and have not delivered a positive return on investment worthy of joining my portfolio.

On average, tech stocks are down about 20% for the year. Not a good sign considering the technology sector is typically one of the best performers year-over-year. After a few hours of Googling and researching a number of companies, I have come up with two stocks that have peeked my interest.

The first company I came across that is having a stellar year is Digital River Inc. (NASDAQ: DRIV). DRIV is an e-commerce company that provides solution for businesses in the software and high tech products industry offering many services ranging from online sales, web hosting and design to the actual delivery of tangible products. The company is up nearly 36% year-to-date.

The company received a major boost from stronger then expected second quarter results and should continue to grow despite current economic conditions. E-commerce saw sales of $36.2 Billion or an increase of 4.86% in the fourth quarter of 2007 amounting to an 18% jump from the previous period according to the U.S. Department of Commerce.

Another company that has always been on top of their game and continues to beat the market despite poor economic conditions is Qualcomm (QCOM). I don’t think this company needs too much introduction, as they are a staple of our community and have been a major market player for some time now. QCOM is up 18% year-to-date and has recently settled an ongoing patent law suit with Nokia. The financial settlement terms were not released to the public, however QCOM did state it will be receiving royalties from Nokia for 15 years for the licenses of the technology that was in dispute.

If you are like me and are looking for companies that are outperforming their peers and I don’t know one investor that isn’t. I recommend taking a closer look at these two ideas. After a few hours of research you will be able to decide if these companies fit your portfolio and to what extent.

Quest Minerals & Mining Corp. (OTCBB: QMNM) announced today that it has taken all of the steps necessary to sustain consistent high volume coal production at its Pond Creek, KY mine. Management also noted plans to issue impressive tonnage reports within the next few weeks.

According to the release, over the past ten (10) days, Quest has made the following improvements:

– Replacing 1,200 feet of used conveyor belt that was more than ten years old;

– Adding four feet to the belt feeder along with its own motor so that it will run independent of the belt line;

– Installing new hydraulic jacks to the roof bolter; and

– Refurbishing the under carriage on their joy 14-10a miner to give it better output efficiency.

With management stating today that the mine is finally prepared for high tonnage production, investors will be waiting impatiently for the initial tonnage report. Until, the numbers are presented, the stock remains a highly speculative venture. However, the upcoming promised production report will provide a tangible means by which investors can begin putting a more accurate valuation.

We’ll be watching closely for the report and will be sure to give you our take on it once it hits the presses.

According to the Solar Generation V Report recently published by Greenpeace and the European Photovoltaic Association [EPIA], “Solar electricity can contribute largely to the energy needs of two-thirds of the world’s population – including those in remote areas – by 2030.”

The report also estimates that more than 1800 gigawatts of photovoltaic systems will be installed worldwide by 2030. That’s enough power to meet approximately 14% of global electricity demand and supply energy to more than 4 billion people.

Not only is solar power beneficial to the environment, it’s also quite positive for the economy.

The new Solar Generation report also reveals that the global population of “green collar” workers responsible for the sale, installation and maintenance of photovoltaic solar systems is expected to balloon from 120,000 currently to more than 20 million in 2020 and nearly 10 million by 2030.

These jobs are created locally and therefore promote the economic advancement of local economies in virtually every corner of the globe. Increased dependence on solar power should also hopefully move us closer to more sustainable communities.

Currently, grants and tax breaks are helping facilitate the growth of the solar industry. Hopefully, by 2015 to 2020 the solar field will be cost-competitive with conventional energy sources. One of the main solar companies out there is LDK Solar Co., for more information click here.

Many people are focused on the home front when it comes to becoming more eco-friendly, or “green.” That’s all well and good, and you can apply all of the ideas mentioned below to your home lifestyle, but the often overlooked part of life that needs to change for many is the work environment!

1. First off, you can provide recycling bins for your workers, and yourself, or introduce the idea to the big-wigs. Place them next to all the trash cans, and what people have found is that placing pictures of the recyclable materials on the bins helps promote participation. Some even “seed” the bins by placing the materials okay to recycle inside the bins so others can see what’s okay to discard and follow suit.

2. Another idea is to stop buying disposable cups and invest in some good old fashioned coffee mugs. Most employees drink coffee or tea, even just water can go into those mugs. Have each person be responsible for cleaning the mug they use or dedicate the chore to someone in the office, or even rotate it. A little effort on everyone’s part goes a long way.

3. A great deal of business owners and employees alike are now working from home as the cost of commuting surges. It’s a great way to cut costs related to travel & fuel, leasing and owning property, and maintenance. As technology advances and an increasing number of our daily work tasks can be performed just as or more efficiently online than in the office, telecommuting should be given heavy consideration; even if it’s just a few days per week.

4. Use natural remedies for pest control and for cleaning. The company Seventh Generations makes a great line of eco-friendly products, the latest of which is the toilet cleaner! It’s safe for the septic-tank and non-caustic to humans.

5. Here are a few more helpful hints to make your personal or work environment eco-friendly: If there are ants in your home or office sprinkle a line of pepper, they won’t cross it. If there are ample windows and it’s sunny outside, open the curtains and let the light in and turn off the overhead lights. And on moderate days, open those windows up to save on heating and cooling.

In regards to our current portfolio companies that are in some way focused on the green movement: Legacy Systems Holding (OTCPK: LGYH) has developed and patented a new, breakthrough process that employs “Green Chemistry” to produce an environmentally safe process for photoresist stripping and cleaning of any size silicon wafer. Legacy’s technology demonstrates a significant value proposition for the $7 billion per year silicon wafer cleaning industry in many ways and has already been adopted by the likes of Tyco and Micrel. Here’s a corporate profile on Legacy that we put together a short while back.

These ideas mentioned above can help create a successful green life in and out of work. What other ideas can you implement to help preserve our planet?