Research indicates that Balchin’s Victorysank with a substantial amount of gold and silver aboard.  Thecompany has also said that it has been working with the UnitedKingdom’s Ministry of Defence so that it can be assured that it isrewarded for its efforts.

International maritime law states that warships and government-ownedships even from ages past remain the property of the government.  Thiscompany has had run-ins with the government of Spain over thisbefore.

Odyssey is a treasure hunting company that explores for shipwrecks.  Unlike most shipwreck hunters, Odyssey goes after deepwater discoveries.  The company found the famed Civil War erashipwreck of the SS Republic in 2003.   You have probably seencommercials selling SS Republic coins.  Odyssey recovered more than 50,000coins and 14,000 artifacts from the site nearly 1,700 feet deep.

Odyssey shares are actually trading up sharply.  This closed at $3.95Friday, and shares are up over 30% at $5.17 in pre-market trading.  Its52-week trading range is $2.60 to $7.40,

Jon C. Ogg
February 2, 2009

BDJ Discovery Group filed the original arrest action in 2005 against the Unidentified Shipwreck Vessel, its apparel, tackle, appurtenances and cargo located in the waters of the Atlantic Ocean approximately 12 miles off the coast of North Carolina.  Odyssey has been conducting surveys and inspections in the area and on the arrested site since August 2007.  It is currently planning the next stages of survey and archaeological investigation of the site.

BDJ Discovery Group is the company that originally discovered evidence of the site, brought the project to Odyssey in 2007 and an agreement was reached for Odyssey to take over all aspects of the project. BDJ has assigned all of its rights to the artifacts and any wreck from which they originate to Odyssey in return for up to 15% of any proceeds from artifact sales after archaeological excavation, conservation, marketing and certain other expenses.

This lists a small number of gold and silver artifacts among other items in what it calls the "Firefly" site, although this site remains unidentified.  Shares of Odyssey Marine are actually up 9% at $5.50 after this announcement, although the 52-week range is $2.70 to $9.45.  Investors will probably hoping this treasure has no Spanish ship attached to it that the Spaniards can try to go after.

• Odyssey Marine Exploration: Treasure Hunting Rags to Riches (OMR)
• Recent Market Malaise Extra Painful For Cult Stocks

"So son, tell me what you want to be when you grow up….."
"Dad, I want to be a treasure hunter." 
Son, really.  What do you want to be?"
"I told you, a treasure hunter."

Jon C. Ogg
February 25, 2008

This last drop has been extremely tough on many of these speculative and ‘cult stocks’ over the last couple of weeks.  Here are a just a few of the instances in some of the more cult stock names we cover from time to time:

CMGI Inc. (NASDAQ:CMGI) is actually less than 10% above its 52-week lows of $1.20 now.  At $1.36 it is down almost 50% from the $2.60 highs.  This was a major cult stock for the first half of the year.  If the capital markets are closing it may crimp its wave of investing into recent alternative energy companies.  That argument seems flawed, and the ModusLink story has still been receiving coverage.  Here was what we The story didn’t seem like it has changed at all, but it is obviously not at all immune to a market tank nor to a softening economy and any tightening liquidity crunch isn’t going to be well received by CMGI speculators.

Safeguard Scientifics (NYSE:SFE) traded as high as $3.28 at the end of April, and shares sit at $2.00 mid-day.  Safeguard traded up after such a large move earlier this year at CMGI.  We interviewed the CEO at the end of June.  Maybe their own capital hasn’t dried up for investing, but partners may have a harder time pulling the trigger now.

Local.com (NASDAQ:LOCM) also saw shares skyrocket on a patent award and on other business developments, but even on the 2+% post-earnings gain today shares have fallen more than 50% from highs in July.

Hoku Scientific Inc. (NASDAQ:HOKU) is still up nearly 300% from lows, but it has been shares in recent weeks fall from highs of over $14.00 down to just under $8.00 today.  Its pending contracts have been viewed with less certainty over the future financing of its polysilicon factory under plans in Idaho.  That is the logic behind the slide any way.  We gave a "both sides of the coin" picture on this back in June, and right now it’s on tails.

Odyssey Marine (NASDAQ:OMEX), formerly OMR on AMEX, shares are higher after it filed amended complaints against Spain after Spain wants its treasure back for free that it lost in shipwrecks and after a recent brief company boat seizure and data copied from one of the laptops on board. This was the story that got Odyssey back on the map, no pun intended.

Obviously there are many names out there that have been given a hard market slap.  A 7% drop in the DJIA has equated to a 7% drop in the NASDAQ.  All eyes are on the FOMC today, although with a liquidity and a housing market at serious risk Bernanke & Co. probably have more on their mind besides small cap speculative stocks. 

In really tough times that won’t have major buyouts and times where investors may not be able to count on share buyback plans to add a floor, investors look at defensive stocks.  Here was our revised ‘bulletproof stock list’ from last week.  Just keep in mind that if a market stays tough, even the teflon stocks fall victime to the firing squad.

Jon C. Ogg
August 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.