Money for Nothing? Chaffee Royalties Return

If you haven’t been checking the site over the last few days, you might have missed the most salient news of the week:

The Stock Gumshoe is on vacation.

But not absent from your hearts, I hope.

Today’s vacation rerun is an ad that recently started burning up the charts again — the Chaffee Royalties from Chris Mayer’s Special Situations newsletter.

Mmmmm… Royalties. Love the image that conjures up, you just sit there and collect your cash, right, and don’t have to do anything?

Well, sort of — I wrote about this one back in May, you can read up on the Chaffee Royalty ad here, and find out what stocks are touted.

I won’t spoil the surprise too much, but the main stock touted was already down quite a bit in May, and has come down another 40% or so since I wrote about them … is it a bargain now, or a falling knife? Your call.
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Related Articles:

“The Next Franco-Nevada” and Nickel Prices

“The Next Franco-Nevada: Chaffee Revisited”

“Chaffee Royalty Program: Mining Profits without the costs”

“Colorado Oil Jackpot: 2 cents to $2″ Badiali

“Gold-Backed Annuity” companies … income for life?

1. I have been geting the teasers from penny sleuth which has a link on your site. I am wondering just how good they are and did you have any control over them having a link on your site.
   Especially interested in there slow volcano teaser which I believe is Geothermal. what companies are they teasing and how good are the prospects?

   Thanks for any help

   [Reply]

   

   SageNot Reply:
   August 24th, 2008 at 1:43 pm

   I doubt that this tease is a penny stock, Byron King’s Energy and Scarcity Investor indicates that it’s selling in the mid $20.s, & unlike the normal Geothermal venture, this slow volcano has no natural exit to the earth’s surface. But the heat source will be used to spin a turbine & if my eyes aren’t playing tricks on me, they claim that the electricity will supply all of California’s electric needs.

   Now all we need is for Gumshoe to ID the stock, unless other posters here have that info already.

   SageNot

   [Reply]

   

   StockGumshoe Reply:
   August 24th, 2008 at 1:59 pm

   The original Slow Volcano Power stock was Western Geopower, you can see the writeup here from last November:

   http://www.stockgumshoe.com/2007/11/slow-volcano-power.html

   … but that’s nowhere near a $20 stock (it is “mid-20s”, but cents, not dollars), so perhaps the ad has changed.

   If it’s really a $20 California geothermal stock, the only one that comes immediately to mind is Calpine, the large utility with a geothermal business. They came out of bankruptcy earlier this year … but that’s just a guess without having looked at the new version of this ad, almost all of the geothermal pure plays are penny stocks, save for Ormat or Raser, both of which are somewhat larger and listed on the major exchanges, and most of the existing geothermal plants are owned by large utilities.

   Will try to dig into it now that my vacation is sadly coming to a close.

   [Reply]

   

   StockGumshoe Reply:
   August 24th, 2008 at 2:05 pm

   Hi oneinamill, I responded on the Geothermal stuff, but should also make clear that the advertisements on this site are not from companies that I explicitly endorse, and with some exceptions I do not sell the ads directly or know who is buying them. Most of the ads are served by Google, and I probably don’t even see most of the advertisements (they’re different for everyone who views the site). I can block ads that I think are objectionable or that I know are really nothing but scams, but while I do so on occasion I probably wouldn’t catch them all even if I tried.

   The short answer is, the ads will hopefully be relevant but they have not been screened by me. The only ads I have tried to block entirely are the “promostockpicks” and the “doublingstocks” folks, but even that blocking probably hasn’t kept them off the site since they often use different names and websites.

   [Reply]

   Posted by oneinamill | August 24, 2008, 11:08 am

2. Hmmmmmmm, then Byron King is speaking of another slow volcano deal, here are the exact teaser words:

   “Slow Volcano” Power Could Soon Light Every Streetlight
   in San Francisco…

   Without Burning One Ounce of
   Coal, Oil or Gas

   California Senate Bill 107 Will Legally Force California to Produce 20% of Its Electricity From Sources Like “Slow Volcano” Power by Dec. 31, 2010…

   AND 18 MIT Scientists Say That “Slow Volcano” Power Can Produce 2,000 Times the Amount of Electricity That America Consumed in 2005…

   This Company Is the Only Pure Play on Californian “Slow Volcano” Power… and You Could Buy 100 Shares for Only $26.50…

   Dear Curious Reader,

   Right now, a “slow volcano” broils deep beneath the brown mountains 72 miles north of San Francisco.

   Don’t worry, though. This volcano will never erupt.”

   Ad nausem!

   When you think of it, if this company has that much earthly energy, how could it still be a penny stock, but what do I know?

   [Reply]

   

   SageNot Reply:
   August 24th, 2008 at 4:12 pm

   Oh shoot, now that I see the price on this board, 100 shares for $26.50 means .265/shr. And to think that I ace’d math in college, heh-heh!

   [Reply]

   Posted by SageNot | August 24, 2008, 4:08 pm

3. I would think using geothermal they would use it to burn the garbage instead of bull dozing it into the soil. It would keep metals melted, and sanitize the garbage. Maybe melt down all the metals, and return them to the refineries. What are we missing here?

   [Reply]

   

   StockGumshoe Reply:
   August 25th, 2008 at 1:40 pm

   Many folks do burn garbage for electricity, though that’s different than geothermal generation (and it causes awful air pollution if you’re not careful). Geothermal uses the heat of the earth’s core to create steam and run a turbine — they drill for hot water instead of for oil, essentially.

   [Reply]

   

   John Sloan Reply:
   August 28th, 2008 at 7:31 pm

   HI Travis
   not exactly drilling for hot water. They pump the water down and recycle it through the heat exchanger and turbine. The company north of SF is at Geyers and has been in business for years.

   [Reply]

   Posted by Investorperson | August 25, 2008, 7:40 am

4. Thanks everyone for the info guess it is just another one of thos too good to be true deals.
   Sagenot you have the one I was talking about word for word.
   Investorperson; here in this part of the country we use our garbage to make Electricity and recycle what won’t decompose. (Bradford co. Pa.)

   [Reply]

   Posted by oneinamill | August 25, 2008, 1:20 pm

5. Covanta Holding Corp. (CVA), is the nation’s largest owner/operator of waste-to-energy facilities. They own 31 facilities and disposes 5% of the nation’s waste stream. Rated Outperform by RJ&A. I do not own this because the stock looks “stuck” between $25.50 & $29. I’m not nimble enough to trade this. Perhaps others can.

   [Reply]

   Posted by farley 5 | August 25, 2008, 5:26 pm

6. Hey Everybody Western GeoPower Corp is the other player north of San Fran there stock is trading at .27 a share. Calpine Corp is the other trading just under $18. Calpine just came out of BR and beat a Law Suite. Both Stocks moved slightly on Monday while the Market itself was down 241 points.
   A 500-1000 shares of Western is a cheap buy. I havent looked at the Security and Exchznge website to see how there last report was but I will be before I buy.

   [Reply]

   Posted by Daddayp | August 25, 2008, 11:50 pm