Exactly what investors see in Sunbelt International Corp. (PINKSHEETS: SUNB) is unclear, almost as mysterious as the company’s plan of operations, yet despite the obvious red flags that call into question the viability of their efforts shares of SUNB have shaken off an ugly close to last week and have climbed as high as 0.244 on Monday with volume topping the 2 million mark by noon.
An aggressive promotional campaign has placed SUNB in front of many investors, triggering much of today’s activity, yet that campaign can’t erase some of ugly truths that are attached to the company. Look at SUNB’s quarterly report from November, no assets, no revenue and no cash on hand. That doesn’t exactly bode well for the future. In addition to those problems, SUNB has incurred losses of more than $107,000 since inception. While that figure may not sound like much, for a company that has yet to produce a single dollar in revenue and holds nothing of value then any loss is significant.
In all honesty it’s difficult to figure out what SUNB is trying to do. It’s understandable why they dropped their initial plans of operation, which was to import and sell Russian porcelain to distributors, chinaware and giftware stores, and retail outlets, but that decision came after two years and only after SUNB said they had completed market research that concluded such a business plan would not be profitable.
Following their failed attempt to import and sell Russian porcelain, an endeavor that ended in June 2009, SUNB decided they would “actively seek acquiring interests in producing and exploration stage oil wells, focusing its search in North America.” SUNB then stated in their November quarterly report “Our goal is to seek to acquire quality oil and gas properties, primarily “proved producing and proved undeveloped reserves” within the United States. We see significant opportunities in acquiring properties with proven producing reserves and undeveloped acreage in fields that have a long history of production. We will also explore low-risk development drilling and work-over opportunities with experienced, strong operators.”
Almost three years later and still no revenue, still no assets, and no cash on hand. So what is SUNB doing now? Well on Sunday they put together a press release announcing they were “nearing completion of negotiations with a Chinese manufacturer, Qingdao Xingguang Wind Power Generator Co. Ltd located in Jiaonan city, China.” SUNB stated, “The purpose of the negotiations is for the company to act on behalf of Sunbelt regarding all manufacturing and parts supplies required to produce high quality CE ISO certified wind turbines. The company expects to sign a final agreement within the next few days.”
Wonderful, another wind turbine project in China; as if this is a new model for businesses. Rather than tell investors how they will capitalize in this sustainable energy market SUNB provides information about wind energy and how it accounts for a quarter of the world’s power capacity. SUNB also highlights the fact that energy demand is increasing tremendously and somehow this puts them, in the words of company President Fang Soo Liu, “in an excellent position to leverage future opportunities.”
Don’t forget that just last month SUNB announced they had signed an agreement with Promithian Mining Inc. to provide Water Turbines. That announcement stated Promithian will utilize the sustainable energy provided by these water turbines to power exploration and mining operations in a remote area of Southern Yukon. Good luck. As part of that deal SUNB is to provide Water Turbines, which will generate up to six megawatts of power.
Of course SUNB doesn’t mention the value of this agreement, leaving shareholders in the dark.
It can be assumed that the financial gain from these two projects would be minimal as it seems that the “producing and exploration stage of oil wells” aspect of SUNB’s business model has been effectively dumped for the sustainable energy market. In mid-February the company announced their “strategic objective is to provide remote, urban and industrial clients the opportunity to save money while reducing their carbon foot print. This plan of action is being implemented through many agreements made in recent months.”
Look, it’s wonderful that SUNB is trying to find the right market to attack but right now it seems as if they are simply throwing darts at a board to determine what industry they’ll go after next. With shares as high as they are, and they are substantially lower than their 52-week high of 0.65 set earlier this year, this is a big risk. Shares were as low as 0.12 last week and Sunday’s press release isn’t exactly information that will change the company’s future. At any moment these shares could slip below that 0.12 level once this promotional campaign ends.