I wrote earlier about how Enron killed new IPOs, but I guess I fucked up, and it took a lame web 2.0 startup called Foldera to prove me wrong.

Reviewing Foldera's product isn't really worth a whole lot of effort, but I'll give you the short version: it blows. No big surprise here. It's some braindead business organization product with a calendar, e-mail, instant messaging, and all that blah blah blah who-the-fuck-cares, served up with a heaping helping of Ajax. Like I said: not worth reviewing because it's the same shit you've seen over and over.

Hey kid, GET THE FUCK OUT OF HERE

The really interesting part about Foldera is its financing structure. Foldera is actually a publicly traded company. Well, sort of. You can buy it as an "over the counter" security, which means that a purchase or sale of it is just a transaction between private parties, there's no exchange involved (like the Nasdaq or NYSE). Foldera is listed on the OTC Bulletin Board, which is basically just a ticker for these turd securities. The only requirement for a company to be listed there is that they file regular reports with the SEC, just as REAL publicly traded companies do.

There are no market capitalization or earnings requirements to be listed here, but of course, earnings are so not Web 2.0. Profit is old economy bullshit, and Foldera knows it.

OTCBB also provides us with a price graph, which I've taken the liberty of annotating here:

Foldera got a plug from TC in late February of 2006, and later that year in June, Mike Arrington joined the board of directors. As you can clearly see, after this brief spike, the Law Of Quantitative Web 2.0 Bullshit has forced a steady decline in Foldera's value, where it now hovers around 50c. They've still got a $55M market cap; not bad for a bunch of Ajax horseshit.

You'd Make Meriwether Proud

It looks like a company can't be de-listed from the OTCBB unless they fail to file their papers with the SEC. Unless Foldera's team of trained apes can't put together some paperwork every now and then, they should be listed until the company goes tits up, but that shouldn't take long.

Who ever said penny stocks were a bad investment?