This is the sort of stock that is pushed by boiler rooms operating out of Thailand and the Philipines or worse.
The publicized involvement of Ed Masry and Erin Brockovich of the movie fame may be positives, but often the appointment of well known names like these are not necessarily going to lead to much of a different profile of the company and its operations.
It may indeed turn out to be a winner eventually and you might find that you are rewarded very well, but until it has a bit a better track record, my suggestion for now would be to be a bit hestitant about parking all of your super funds in it as you say to have done.
A google search will turn up a number of these SEC documents. http://www.sec.gov/litigation/litreleases/lr18487.htm Small extract of the report.... UNITED STATES SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 17603 / July 9, 2002 SAVE THE WORLD AIR, INC. PERMANENTLY ENJOINED FROM FRAUDULENT ACTIVITIES
Securities and Exchange Commission v. Save the World Air, Inc. et al., 01 CV 11586 (S.D.N.Y.)
The Securities and Exchange Commission announced today that on June 27, 2002, the Honorable George B. Daniels of the United States District Court for the Southern District of New York permanently enjoined defendant Save the World Air, Inc. ("STWA") from violating the antifraud and other provisions of the federal securities laws. STWA, without admitting or denying the allegations in the Commission's Complaint, consented to the entry of the final judgment against it. STWA is a Nevada corporation headquartered in Australia with its principal offices in California, whose business involves the manufacture, licensing, and distribution of a device called the "Zero Emission Fuel Saver" ("ZEFS") device.
In its Complaint, filed December 19, 2001, the Commission alleged that from at least February 1999 through at least April 2001, STWA and its former president and CEO, Jeffrey Muller, carried out a fraudulent promotional campaign using press releases, Internet postings, an elaborate Internet website, and televised media events to disseminate false and materially misleading information about STWA's product and commercial prospects. STWA's and Muller's actions led to the artificial inflation of the price and trading volume of STWA stock, causing its market capitalization to be as much as $218,728,062. The promotional information distributed by STWA and Muller included: (1) announcements of significant licensing agreements and other important business developments, and (2) announcements concerning public automotive demonstrations that purportedly proved or would prove that the ZEFS materially reduces emissions and improves fuel economy in motor vehicles. In fact, the purported licensing agreements and other purported business events simply did not exist, and the ZEFS demonstrations did not prove that the ZEFS actually worked as represented. ....
This is an extract from an older post, but seems to give some detail about the company and product history.
http://www.stockpatrol.com/schlock/articles/saveworld.html SAVING THE WORLD - SOMETHING FOR INVESTORS TO "MULL" July 19, 2000 Saving the world. Now that sounds like a noble ambition, but a daunting task. In recent years, various public-minded citizens have banded together in campaigns to "Save the Whales," "Save the Rainforests," "Save America’s Forests," "Save A Turtle," "Save the Elephants," and "Save the Oceans," to name just a few. Then there are those who are simply saving that last dance.
And then there’s an Australian gentleman named Jeffrey Muller who has been forming, and running, companies under the "Save The World" banner. One of these companies, called Save The World Air, Inc., says it has the "worldwide manufacturing and marketing rights" to a "revolutionary new device" that can virtually eliminate dangerous auto emissions like carbon monoxide. Since we, like all good citizens of the world, are eager to stamp out auto pollution, we decided to begin our review of the Save The World family with a look at Save The World Air.
Save The World Air claims that its "revolutionary" invention "takes toxic fuel emissions as low as zero." Does this mean that noxious auto fumes are about to go the way of the dinosaurs? The Company says the device works on automobiles, trucks, boats and other gasoline powered engines. That certainly sounds intriguing, particularly when you consider the fact that this "revolutionary device" was invented by a 72 year old Australian artist and sculptor named Pro Hart. Mr. Hart’s other interests apparently include weight lifting and a vintage car collection (pollution-free we would hope).
Exactly what is this "revolutionary device," what makes it unique and how does it work? The Company offers few details, other than to say that the device "reduces the toxicity of exhaust gas emissions by working on the inlet manifold before the harmful gases are created."
What do investors really know about Save The World, Inc? They know that the Company trades on the OTC Bulletin Board under the symbol ZERO – which somehow seems appropriate. Save The World Air has virtually zero money and zero assets. It also has zero employees and zero manufacturing facilities for its device.
None of this appears to have deterred some investors. Save The World Air’s shares, which were priced at 10 cents in late December 1999, traded as high as $14 a share on July 7th. At last report, there were 15.4 million shares outstanding, which means that Save The World Air briefly had a market value of more than $215 million earlier this month.
So we repeat. What do investors really know about the state of Save The World Air? Not a great deal – but maybe enough.
Free At Last
Save The World Air refers to itself as a "debt free company." It is also virtually cash free – as of March 31, 2000, the Company had $873 in the bank.
In most banks, that balance wouldn’t even qualify for free checking. So how does the Company expect to finance its ambitious plans to eradicate auto pollution? Save The World Air has not announced any specific plans on that score, although it concedes that it will need to obtain "additional financing from either third parties or its present shareholders."
Who are those shareholders? The Company doesn’t identify any individual shareholders with the exception of its Chairman of the Board and Chief Executive Officer, Jeffrey A. Muller.
Mr. Muller is a former race-car driver who apparently acquired the rights to the "revolutionary new device" from Australian artist, Pro Hart. How much did Mr. Muller pay for those rights? None of the Company’s public filings provide that information. Investors do know, however, that Mr. Muller transferred those rights to the Company on December 29, 1998, in exchange for 5 million shares of the Company’s stock and $500,000.
Who entered into the agreement with Mr. Muller on behalf of the Company? Why Mr. Muller, of course, acting as Save The World Air’s President. Negotiations were probably quite amicable.
The Company’s most recent public filing does not specify the actual number of shares Mr. Muller owns or controls at this time. It does disclose, however, that Mr. Muller and Lyn Muller (presumably his wife) have agreed to surrender "any claims to reimbursement for employment costs" through March 20, 2000 in exchange for options for each of them to acquire 5 million shares at a cost of one tenth of a cent per share (that’s $10,000 for shares presently valued at something in excess of $50 million).
Exactly what "employment costs" were waived in exchange for 10 million shares of stock (roughly 40% of the Company once the options are exercised)? The Company does not provide those details.
Investors may feel that $10,000 is a small price to pay for stock valued at over $50 million. So who entered into that agreement on behalf of the Company? Could it have been anyone other than Jeffrey Muller, who is listed as the sole officer and director on the Company’s recent public filings?
Investors may not know who owns the rest of the Company’s shares, but they do know that Save The World Air has issued over 15 million shares for just over $80,000. That includes 5 million shares that were issued for "marketing rights".
Who bought those shares? Save The World Air’s public filings do not identify any shareholders other than Mr. Muller.
Did those unidentified shareholders invest their money wisely? Based upon the July 14th closing price of $6.875, those shares would now have a market value of more than $100 million.
The Company’s sparse bank account is explained, in part at least, by its lack of income this year. Although Save The World Air reports receipt of a $125,000 licensing fee in 1999, the Company’s revenues for the first three months of 2000 consisted of consulting fees of $9,980. For that same three month period, the Company had a net operating loss of $9,822.
