Feeds

Wide Open News Gold Mine a Bust? Pan for Linux!

Gold or tech, it makes no difference

  • alert
  • submit to reddit

High performance access to file storage

What do you do when cash is short, your stock is down, and your gold mines have seen better days? Change your name to LinuxWizardry! That's the investment strategy pursued by Flame Petro-Minerals, a Canadian mining company that owns a 50 per cent stake in the Fish Creek Claims outside Fairbanks, Alaska. In February, the company acquired a Linux router company called LinuxWizardry, Inc.. On March 22, Flame Petro-Minerals changed its name to LinuxWizardry Systems, Inc. a shell corporation holding 100 per cent of LinuxWizardry, Inc. shares. The same day, it began trading on the Over-the-Counter Bulletin Board, home of cheap "penny" stocks. LinuxWizardry Systems' stock price has been bouncing between the $2 and $4 range -- quite volatile but holding its own as Nasdaq tech stocks were getting hammered. The penny stock market is loaded with legitimate companies and not a few scams. Unlike some Linux startups without a real product or service to demonstrate, LinuxWizardry showed off its Apprentice Command Center router technology in February at LinuxWorld Expo 2000 in New York. Running on Linux and using graphical interface written in Java, the LinuxWizardry router is being hawked as a low-cost, easy-to-use competitor to Cisco products for small- and medium-sized businesses. John G. Robertson, president of the shell company, is upfront about his motivations for switching from gold mining to Linux. "The one thing public companies have in common is the mission to make shareholders money," he told Wide Open News. "It doesn't make any difference whether it's gold or whether it's tech." "Right now," says Robertson, "there's a real slump in mining companies...Linux is hot. You've got to go with the trends." The router company, LinuxWizardry, Inc., is headed by CEO Mike Carpenter, who tells Wide Open News that before launching his startup he worked on IBM's Via Voice for Linux speech processing software, and has also consulted for Motorola. IBM verifies that Carpenter was a contractor working for the company's Worldwide Speech Development organization on text-speech processing for about a year before leaving in January to start his own company. On March 27, the shell corporation announced $5 million in private placement financing to be used to complete development and production of the router. Carpenter says the company has signed an agreement with a distributor -- he won't say who -- and plans to begin selling the product later this year. Carpenter, who works out of Boca Raton, Fla. with a small team of developers, said "a friend of a friend" introduced him to Flame Petro-Minerals. Using the OTC shell company was preferable to seeking venture financing, both Carpenter and Robertson said, to finish the product as soon as possible. "Speed to market is essential," Robertson said. Drumming up venture capital would have set the project back by months, he said: "If you go through a VC company, you have to present a business plan." In the penny stock market, by contrast, LinuxWizardry raise funds quick and just go for it. And penny stock investors are apt to either reap big rewards -- or get slammed. ® Tune into Wide Open News and check out those Linux, Open Source and tech business stories.

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.