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Harry Beck  

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  • Star Scientific: A Tobacco Stock Buoyed by Dubious Forecasts [View article]

    Dr. Mullam of Roskamp owns and controls SRQ Bio, LLC. Therefore, I would not consider either party independent. I do admit it is not unusual for parties involved with research to have cross-investments, but there is a very important (IMHO) stock pumping issue surrounding this stock. This issue is detailed in the second Street Sweeper article dated 7/4 that was released sometime earlier today.

    If I recall, Martin Shkreli's writeup on Seeking Alpha determined that drug companies already conducted clinical trials of substances/agents similar to the RCP-006. There was no magical "cure" for Alzheimer's found in those trials. I guess you believe RCP-006 is in some way much different than the agents tested by big pharm.

    I will read your links carefully. Perhaps you can explain to me why the "reports" you list and a host of other "information" in circulation that the promoters deem material was never published on Star's own website?

    In terms of the "you guys" comment, I am an individual investor. That's all there is to it! I am not solidly in a "growth", "value" or "momentum" camp. I just like to see things that are significantly over/under valued and make bets. I am not a basher because experience dictates anyone can be right for the wrong reasons or just plain wrong.
    Jul 5, 2011. 11:07 AM | Likes Like |Link to Comment
  • Star Scientific: A Tobacco Stock Buoyed by Dubious Forecasts [View article]
    The pumpers have their story, but the official story presented in Star Scientific’s own SEC filings is completely different. Star Scientific hasn’t made money for the past nine years and doesn’t expect to make money for the foreseeable future. In fact, they may need to raise more capital (again) next year:

    “Absent the exercise of outstanding warrants and options for cash or a substantial improvement in sales and revenues and/or royalties, we believe that the recent funding will support our operations through the first quarter 2012. However, depending upon market conditions and the price of the common stock, we may decide to seek additional funds before that date.”

    Even Star Scientific isn’t suggesting they may hold the key to a cure for Alzheimer’s. Suggesting this is pure fantasy and a great example of the shameful pumping this stock has seen. For example, the pumpers aren’t telling people the research institute isn’t independent. A press release from the Roskamp Institute states:

    “SRQ Bio, LLC, a for-profit affiliate of the Roskamp Institute, has a financial interest in Star Scientific. In April 2010, Star Scientific issued to SRQ Bio, LLC 100,000 shares of common stock in a private placement. In addition, in March 2010, Robert Roskamp, the trustee of the Roskamp Institute, in an individual capacity, purchased shares of Star Scientific stock valued at $1 million, and was issued a matching warrant for an equal number of shares, as part of a private placement transaction.”

    RCP-006 has been tested by the friendly institute since October of last year. There has been no published report of their findings. The pumpers also ignore another fact that was published in The Street Sweeper:

    “In a damaging report earlier this month, however, New York hedge fund manager Martin Shkreli proclaimed that at least three drug companies have already conducted clinical trials of similar tobacco-based agents and found no evidence supporting their use as effective treatments for Alzheimer’s disease. He expressed serious doubts that Star, with its “lack of success” in the nutraceuticals field and its “complete lack of experience” in the pharmaceuticals space, could somehow manage to succeed where more established health-related companies had already failed.”

    Even if Star Scientific eventually produces a commercially viable product (Note: CIG-X does not seem to be likely to be very profitable based upon poor results from the rollout in Virginia, where Star Scientific is located.), investors may not see earnings justify the current stock price. From the latest 10-Q:

    “At March 31, 2011, there were 8,570,200 options issued and outstanding with a weighted average exercise price of $2.33 per share.”

    It seems there are people who will benefit greatly from exercising these options at a high share price, even if the company never earns money again.

    The pumpers continue to attack those who question the company’s past and current lack of earnings, the likelihood of any product being commercially viable, the president’s compensation, the presidents past involvement in a fraudulent stock promotion scheme (, the high current valuation of the stock, and the amount of dilution that will come from the potential exercise of options. What the pumpers can’t do is find fault with the facts brought to light by two recent negative Seeking Alpha articles.
    Jul 5, 2011. 02:05 AM | Likes Like |Link to Comment
  • Star Scientific: A Tobacco Stock Buoyed by Dubious Forecasts [View article]
    "In proveable truth, thanks to our constant research, no one outside the company knows as much about Star Scientific and the milieu in which it is immersed than ... of all things ... its investors!"

    Are you suggesting the company gives special investors like you specific knowledge of these things in order to pass that information to others? Or is all of this mosaic information gathered from speaking directly to Flint, Roskamp, etc.? By the way, how is that product launch at the governor's mansion going?

    For the record, I have never met with the author of the article. Since I have been retired for several years there is no way we work together. We never worked together in the past and I don't see why we would work together in the future. I published one article about a stock on Seeking Alpha, which you can easily find.
    Jun 30, 2011. 03:49 PM | 1 Like Like |Link to Comment
  • Star Scientific: Astonishing Research With Unfathomable Market Potential [View article]
    Well, it is the end of the month and I don't see any launch or lunch with CIGX going on in the governor's mansion.
    Jun 30, 2011. 12:13 PM | Likes Like |Link to Comment
  • A Quick Update on Impending Events & News That Will Affect (CIGX) [View instapost]
    The Street Sweeper spoke today and the article is on Seeking Alpha. I could not answer you earlier since I do not work for that organization and have no access to their reports before they are published, It seems you are part of the report, which insinuates this is all part of a pump and dump to get the share price above $5. At least that is their claim. I just see an overvalued stock.
    Jun 30, 2011. 11:58 AM | 1 Like Like |Link to Comment
  • Star Scientific: A Tobacco Stock Buoyed by Dubious Forecasts [View article]

    Nice piece, and I can't wait to see the follow-up.

    I looked briefly at the YAHOO message board for signs of intelligent life forms. Instead I came away with the conclusion that CIGX is the worst electronic boiler room promoted stock I have ever seen.

    If I recall there are legal/fraud problems in the backgrounds of the dentist promoter John Faessel and CEO Jonnie R Williams.
    Jun 30, 2011. 11:51 AM | Likes Like |Link to Comment
  • Spreadtrum Communications: Clear or Muddy Signal? [View article]
    Suzhou Blue Tiger.

    I have never seen anything in print about their customers. They seem to be a secret. Where is it printed that Samsung and Huawei are customers?
    Jun 30, 2011. 02:27 AM | Likes Like |Link to Comment
  • Harbin Electric: The Buyout Is a Poor Use of Capital [View article]

    Shorts in HRBN (not to be confused with another Harbin) contend the CEO will never buy the company for reasons you can find in other recent HRBN posts. Like other RTO scams, they believe this is a scheme to pump up the price while insiders (or their families) find a way to sell. The street obviously questions the deal, otherwise the arbs would have the price above $22.00 today. Chinese banks have a history of "assisting" companies in ways that we believe are fraudulent.

    The deal is supposedly taking place in December. I question why Yang just doesn't tender it all for $16 per share right now? Why wait until December for $24? Why are the SAIC filings showing a company that is not successful? You get the idea!
    Jun 28, 2011. 04:21 PM | Likes Like |Link to Comment
  • A Quick Update on Impending Events & News That Will Affect (CIGX) [View instapost]
    You have bad timing. The Streetsweeper just announced that they will hammer the company in a two part investigative article:

    TheStreetSweeper has just added Star Scientific (Nasdaq: CIGX) – the subject of an upcoming two-part investigative report -- to its “Caught on Radar” list of risky stocks that have soared on bullish promotions and could be headed for a plunge. Going forward, TheStreetSweeper will soon publish a pair of detailed articles that take a close look at (among other things) the following: the turbulent history of the ever-changing company, the stained record of its longtime CEO, the steady erosion of its financial results, the speculative drivers of its highflying stock and the relentless hype that has repeatedly lifted those volatile (and increasingly diluted) shares.
    Jun 28, 2011. 03:46 PM | Likes Like |Link to Comment
  • Harbin Electric: The Buyout Is a Poor Use of Capital [View article]

    You can "change your mind" assuming if there is a clause that allows it. Usually there is a financial penalty. The penalty here is tiny compared to what insiders will get if the agreement is designed (as some shorts allege) to give them time to dump at a high price.
    Jun 28, 2011. 01:58 PM | 1 Like Like |Link to Comment
  • Playing Cat and Mouse With Global Oil [View article]
    Playing "Cat and Mouse?" There is a good reason why the SPR let loose 60 million barrels:

    As the late Matt Simmons was fond of pointing out, reported Saudi reserves are bogus and likely far less than reported.
    Jun 28, 2011. 09:56 AM | 1 Like Like |Link to Comment
  • Citron vs. Harbin: 5 Questions Shorts and Longs Should Be Asking [View article]
    I wonder if that firm also pumped LPHI? Are there documents that prove this? Peden's amicus brief will work against them when fighting Howey claims. But alas, that is another fraud. Speaking of which, I'm doing my research now on China Fire although Bronte's is likely all that is necessary.
    Jun 27, 2011. 05:06 PM | Likes Like |Link to Comment
  • Citron vs. Harbin: 5 Questions Shorts and Longs Should Be Asking [View article]
    Initials TB? You asked that before, and the answer was both enlightening and educational. He now has to have a big problem finding a new auditor!
    Jun 27, 2011. 12:26 PM | Likes Like |Link to Comment
  • Citron vs. Harbin: 5 Questions Shorts and Longs Should Be Asking [View article]

    I'll bet a steak dinner there will never be a proxy...just more press releases giving the insiders more time to dump.
    Jun 26, 2011. 11:28 PM | Likes Like |Link to Comment
  • Citron vs. Harbin: 5 Questions Shorts and Longs Should Be Asking [View article]
    It is about borrowing unused cash as you suggest. If it goes private with a $400 million + loan how will the debt service be covered? They already have twice the reported (and likely bogus) margins of any other similar company in the world with zero technological advantages, so it is not as if the money can be used improve sales or margins.
    Jun 25, 2011. 02:00 PM | Likes Like |Link to Comment