Xhibit Corp: Management's Shady Ties, Millions Of Shares Issued For Pennies And Absurd Valuation Suggest At Least 80% Downside For This $290M 'Cloud' Stock [View article]
You're kidding right? Did you read the article? The shell shares should be free-trading, representing millions of dollars worth of shares which were basically printed.
Furthermore, are you really so naive to think that there is no way to distribute restricted stock? If yes, I suggest you read this: http://bit.ly/XwnxUc
Then do a google search for "illegal sale of restricted stock" or "unlawful sale of restricted stock".
Pershing Gold - Recent Insider Transactions Could Be A Bullish Sign [View article]
Devon, I like reading your work on Canadian oil industry names and own PBN long.
This is an interesting article about an enigma of a company. Despite the ownership from some big fish, Pershing is an RTO, it has a lot of low cost shares out over the years and I have seen it promoted on paid tout sheets advertised through Yahoo Finance. This is usually enough to get me to short the company, but because of the things you meantioned I've never decided to commit to PGLC as a short.
That said, I'd suggest doing a lot more homework into things like past corporate transactions, players in the RTO, etc. before you do anything more than dip your toe in this one.
Xhibit Corp: Management's Shady Ties, Millions Of Shares Issued For Pennies And Absurd Valuation Suggest At Least 80% Downside For This $290M 'Cloud' Stock [View article]
Some people actually own this stock. Firstly I would like to warn them about it; I don't like to see students and retirees losing money while stock promoters and crooks get rich. Without exposure, scams fleece more people for more money over a longer period of time.
As far as the borrow goes it is also not impossible to get borrow on it and should become easier over time. Such is the nature of pump and dumps, as more volume gets pushed out then the borrow will loosen up on its own as more suckers hold the overvalued paper.
Xhibit Corp: Management's Shady Ties, Millions Of Shares Issued For Pennies And Absurd Valuation Suggest At Least 80% Downside For This $290M 'Cloud' Stock [View article]
Every single APS pick is a fundamental zero but they are smart with how they set up their pumps and have lots of past profits to wash-trade the stocks with.
Xhibit Corp: Management's Shady Ties, Millions Of Shares Issued For Pennies And Absurd Valuation Suggest At Least 80% Downside For This $290M 'Cloud' Stock [View article]
My understanding is that those 13 million are reserved for issuance under the stock-based compensation plan, but the majority would not have yet been issued.
Cellceutix: Are 2 Guys Worth $200 Million? [View article]
Good article Ben. I love the haters comments against your work, totally classic. Well the stock is down over 33% today, so maybe 2 guys aren't worth it!
Look forward to your future articles. IMSC is a total gimme for shorts as well! :)
You are right, no one will purchase Parkervision. This is because its patents are worthless. PRKR is just a nice little vehicle for Jeff Parker and management to extract tens of millions in compensation while spinning a nice little pie-in-the-sky story for investors. One of the biggest scams in the market today.
Great Northern Iron Ore: How To Trade Dimes For Nickels [View article]
Neil, I have accounted for that $8-9 that you refer to as the "Final Distribution", it is in the valuation model and the article speaks at length about this in the article under the heading "Misconception #2: Shareholders Will Receive Anything Beyond the Final Distribution for the Trust's Current Royalty or Land Rights".
Hi-Tech Pharmacal Set To Drop By 60% On Earnings And Fraud Investigations [View article]
Very nice article Rick, particularly in terms of your expose of management's corrupt self-dealing with shareholder cash. Definitely some very dicey transactions going on here that should cause shareholders to squirm.
Results reported today significantly better than your projections. Sales of Fluticazone were down only ~6.5% and on a QoQ basis the company seems to be holding its ground with revenue increasing about 10%. Although margins are deteriorating YoY, the EPS came in at $0.66 vs. your projection of ~$0.30-0.35. I'm interested to hear your take on all of this because fundamentally the short thesis still seems quite interesting...
Annie's: Overstuffed And Ready To Drop [View article]
Nice Article Infitialis. Yes, this stock is in a huge bubble. I am also short.
I do think that consumers that are concerned with organic would probably look beyond the standard nutritional information and be more concerned with things like antibiotics in their cheese, etc. That said, something is disclosed as a risk in Annie's IPO prospectus is that they use bisphenol-A in their packaging! Hardly becoming of a company with this kind of positioning...
Angie's List Financials Show A Train Wreck In Progress [View article]
Yes. This company is a disaster. A Wall Street endorsed pump and dump designed to bilk ordinary investors while enriching ANGI's CEO, management, VC investors and the investment banks underwriting financing deals.
This stock is $5 or less in 12 months. If you haven't seen it yet, check out the DD that I have done on it so far here:
Angie's List's Undisclosed Class Action Suit: What Could It Mean To Shareholders? [View article]
I think the results were bad, the company lost $18 million and burned $11 million in cash. But the results were not as bad as what people, including myself had expected. Since the stock was trading very near the 52-week low, it rebounded.
The earnings release detailed how ANGI is going to buy real estate from a company 70% owned by the CEO for $6.25M. While the company has lost over 60M in the past 12 months, the CEO has taken home over $10M. Nice gig.
The company has still not disclosed the lawsuit to shareholders, which is clearly a material event. It also strikes me that if they settle or lose the lawsuit, they could face an SEC investigation at some point because they were illegally inflating their revenues so that the management and directors could sell hundreds of millions of stock. The company also seems to have a number of undisclosed real estate development related commitments, beyond buying the property from the CEO's other company which could eat into their liquidity going forward.
Historically, it just hasn't been the case that the company has ever developed significant operating leverage, certainly not enough to ever make up for the ever increasing amount of overhead spending.
I doubt the 80% contribution figures cited by management on advertising renewals, this smacks of more smoke and mirrors accounting to me. That figure suggests that very little of the ballooning marketing expense should be allocated towards these renewals, but it probably should be. The company would lose 22-25% of its subscriber base in a given year if it didn't spend a ton on marketing. I don't think renewal of service provider revenue would come in too favorably under this scenario...
Overall, I think that management is clearly in the twlight zone here, if they believe that their 9 month $55.3 million loss represents a "very good year". Lenin said that "A lie told often enough becomes truth", except that in reality it doesn't. The truth is that the company has never made a profit, it's losses continue to widen and it will be forced to return to the market in a couple quarters for financing.
Angie's List: Pricing Problems, Poor Q3 Search Numbers, And Many More Red Flags Suggest More Trouble Ahead [View article]
Historically, it just hasn't been the case that the company has ever developed significant operating leverage in this respect, certainly not enough to ever make up for the ever increasing amount of overhead spending.
I doubt the 80% contribution figures, this smacks of more smoke and mirrors accounting to me. That figure suggests that very little of the ballooning marketing expense should be allocated towards these renewals, but it probably should be. The company would lose 22-25% of its subscriber base in a given year if it didn't spend a ton on marketing. I don't think renewal of service provider revenue would come in too favorably under this scenario...
Xhibit Corp: Management's Shady Ties, Millions Of Shares Issued For Pennies And Absurd Valuation Suggest At Least 80% Downside For This $290M 'Cloud' Stock [View article]
Furthermore, are you really so naive to think that there is no way to distribute restricted stock? If yes, I suggest you read this: http://bit.ly/XwnxUc
Then do a google search for "illegal sale of restricted stock" or "unlawful sale of restricted stock".
Pershing Gold - Recent Insider Transactions Could Be A Bullish Sign [View article]
This is an interesting article about an enigma of a company. Despite the ownership from some big fish, Pershing is an RTO, it has a lot of low cost shares out over the years and I have seen it promoted on paid tout sheets advertised through Yahoo Finance. This is usually enough to get me to short the company, but because of the things you meantioned I've never decided to commit to PGLC as a short.
That said, I'd suggest doing a lot more homework into things like past corporate transactions, players in the RTO, etc. before you do anything more than dip your toe in this one.
Xhibit Corp: Management's Shady Ties, Millions Of Shares Issued For Pennies And Absurd Valuation Suggest At Least 80% Downside For This $290M 'Cloud' Stock [View article]
As far as the borrow goes it is also not impossible to get borrow on it and should become easier over time. Such is the nature of pump and dumps, as more volume gets pushed out then the borrow will loosen up on its own as more suckers hold the overvalued paper.
Xhibit Corp: Management's Shady Ties, Millions Of Shares Issued For Pennies And Absurd Valuation Suggest At Least 80% Downside For This $290M 'Cloud' Stock [View article]
Xhibit Corp: Management's Shady Ties, Millions Of Shares Issued For Pennies And Absurd Valuation Suggest At Least 80% Downside For This $290M 'Cloud' Stock [View article]
Longwei Petroleum: The Most Brazen China-Based U.S. Listed RTO To Date [View article]
Cellceutix: Are 2 Guys Worth $200 Million? [View article]
Look forward to your future articles. IMSC is a total gimme for shorts as well! :)
ParkerVision Unlikely To Be Bought [View article]
Great Northern Iron Ore: How To Trade Dimes For Nickels [View article]
Acquity Group's Weak IPO No Longer A Mystery [View article]
Hi-Tech Pharmacal Set To Drop By 60% On Earnings And Fraud Investigations [View article]
Results reported today significantly better than your projections. Sales of Fluticazone were down only ~6.5% and on a QoQ basis the company seems to be holding its ground with revenue increasing about 10%. Although margins are deteriorating YoY, the EPS came in at $0.66 vs. your projection of ~$0.30-0.35. I'm interested to hear your take on all of this because fundamentally the short thesis still seems quite interesting...
Annie's: Overstuffed And Ready To Drop [View article]
I do think that consumers that are concerned with organic would probably look beyond the standard nutritional information and be more concerned with things like antibiotics in their cheese, etc. That said, something is disclosed as a risk in Annie's IPO prospectus is that they use bisphenol-A in their packaging! Hardly becoming of a company with this kind of positioning...
Angie's List Financials Show A Train Wreck In Progress [View article]
This stock is $5 or less in 12 months. If you haven't seen it yet, check out the DD that I have done on it so far here:
http://seekingalpha.co...
http://seekingalpha.co...
http://seekingalpha.co...
Angie's List's Undisclosed Class Action Suit: What Could It Mean To Shareholders? [View article]
The earnings release detailed how ANGI is going to buy real estate from a company 70% owned by the CEO for $6.25M. While the company has lost over 60M in the past 12 months, the CEO has taken home over $10M. Nice gig.
The company has still not disclosed the lawsuit to shareholders, which is clearly a material event. It also strikes me that if they settle or lose the lawsuit, they could face an SEC investigation at some point because they were illegally inflating their revenues so that the management and directors could sell hundreds of millions of stock. The company also seems to have a number of undisclosed real estate development related commitments, beyond buying the property from the CEO's other company which could eat into their liquidity going forward.
Historically, it just hasn't been the case that the company has ever developed significant operating leverage, certainly not enough to ever make up for the ever increasing amount of overhead spending.
I doubt the 80% contribution figures cited by management on advertising renewals, this smacks of more smoke and mirrors accounting to me. That figure suggests that very little of the ballooning marketing expense should be allocated towards these renewals, but it probably should be. The company would lose 22-25% of its subscriber base in a given year if it didn't spend a ton on marketing. I don't think renewal of service provider revenue would come in too favorably under this scenario...
Overall, I think that management is clearly in the twlight zone here, if they believe that their 9 month $55.3 million loss represents a "very good year". Lenin said that "A lie told often enough becomes truth", except that in reality it doesn't. The truth is that the company has never made a profit, it's losses continue to widen and it will be forced to return to the market in a couple quarters for financing.
Angie's List: Pricing Problems, Poor Q3 Search Numbers, And Many More Red Flags Suggest More Trouble Ahead [View article]
I doubt the 80% contribution figures, this smacks of more smoke and mirrors accounting to me. That figure suggests that very little of the ballooning marketing expense should be allocated towards these renewals, but it probably should be. The company would lose 22-25% of its subscriber base in a given year if it didn't spend a ton on marketing. I don't think renewal of service provider revenue would come in too favorably under this scenario...