Newspaper article THE JOURNAL RECORD

Seeking Signs of Success in Penny Stocks

Newspaper article THE JOURNAL RECORD

Seeking Signs of Success in Penny Stocks

Article excerpt

Sometimes press releases offer interesting tales of the little companies that could ... maybe.

One such reminder of commerce's wispy nature came with last week's Proxity Inc. annual meeting at Hotel Phillips in Bartlesville, where Proxity recorded the first profitable year for subsidiary and governmental database firm Proxity Electronic Commerce Systems, finishing 2008 with a $17,554 net profit from revenue of $419,995.

Shareholders approved Proxity Inc.'s merger with the ramping-up alternative-energy company CAVU Resources.

Analyst Greg Womack said many startup or private equity firms thirsty for cash will hire public relations firms to spin out a stream of these types of releases, all to generate interest or word- of-mouth activity.

"I get a lot of them," said M. "Jake" Dollarhide, chief executive of Longbow Asset Management of Tulsa. "Sometimes you wonder if the mission is to run their business or to raise money."

Touting itself as a developmental holding firm interested in everything from security technology to government contract fulfillment and natural resources, Proxity has a unique history of drifting around the United States.

Over the last three years, the pink-sheet company's press releases and the U.S. Securities and Exchange Commission indicated headquarters operations shifting from Virginia Beach, Va., to Atlanta, New Orleans, and Tulsa, where Chief Executive William Robinson (not to be confused with the Lost in Space voyager) kept a South Harvard office.

Proxity's Web site now places its corporate offices in Carson City, Nev., although the press release carried a Tulsa dateline.

While that can raise questions of stability or legitimacy, Dollarhide said that can reflect internal changes of ownership or management among small, mobile companies seeking a solid support base.

Proxity officials reported several revenue strategies for CAVU, which draws its name from a World War II naval pilot phrase "ceiling and visibility unlimited."

The firm had secured land leases for wind and solar energy farms "surrounding its targeted gas leases" in northern Oklahoma and Colorado. …

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