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Matthew Finston

 
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  • Creative Edge Makes Front Page Canadian National News
    Editors' Pick • Yesterday, 9:28 AM FITX 57 Comments

    Summary

    • Canada's largest circulation national newspaper, the Globe and Mail, has published a two-part investigative report on the complications of Canada's MMPR system.
    • The paper's second part paid significant attention to the notorious, 'Creative Edge Nutrition,' a company that has been scrutinized here at Seeking Alpha.
    • Using the seedy practices of Creative Edge as an example of Canada's mismanaged system, the Globe and Mail ultimately puts Ottawa in the spotlight for failing to take responsibility to regulate its own industry.
  • Marijuana Stocks: Canadian Court Strikes Down Appeal To Overturn Injunction
    Tue, Dec. 16 BNRDF, OGRMF, TWMJF 17 Comments

    Summary

    • Recent news to come out of Canada has been mixed.
    • New MMPR licenses issued suggest Health Canada has stopped dragging its feet.
    • Feds lose recent bid to appeal injunction that allows patients to grow at home. Trial to determine legality of MMPR is set for February.
  • The New Baupost Biotech Picks
    Mon, Dec. 15 ATRA, AVEO, BIIB 1 Comment

    Summary

    • Baupost initiated a 12.04% stake in Paratek Pharmaceuticals.
    • Baupost initiated a 11.72% stake in Forward Pharma A/S.
    • Baupost initiated a 12.86% Atara Biotherapeutics.
  • The Real Oil Crisis: We're Running Out Of Oil
    Mon, Dec. 15 USO, OIL, UCO 6 Comments

    Summary

    • Oil crisis punditry myopia has been fun to watch, but now it's time to change the tune.
    • Let's be real: there's only 50 years left of oil in the world.
    • When the oil pundits start focusing on the long-term prospects of the oil industry, prices may return to previous levels.
  • Unveiled House Spending Bill Bullish For Ebola Stocks
    Wed, Dec. 10 AEMD, NLNK, NVAX 2 Comments

    Summary

    • The house released a $1.1 trillion spending bill late on Tuesday December 9, 2014.
    • The bill has earmarked $5.4 billion in funds towards the prevention and emergency response to the outbreak of the Ebola virus worldwide.
    • The $5.4 billion is ultimately a bullish sign for Ebola stock investors as some publicly traded companies are bound to benefit from the spending bill, if it passes.
    • Overall, I am still cautious about most of the names out there and stress investors refrain from reacting overzealously to the news.
  • Basic Energy Services: Contrarian Play With Significant Short-Term Upside
    Wed, Dec. 10 BAS 7 Comments

    Summary

    • Basic Energy Services share price has fallen -77% in the past six months due to fears of falling oil prices.
    • Despite the sell-off, the company announced Tuesday that operational efficiencies have improved year/year.
    • The recent update from the Energy Information Administration reveals that the Permian Basin, where Basic has a strong foothold, will continue to see increase in production.
    • The share price remains deeply discounted in the short term, with a 40% upside.
  • A Liberal's Confession: Why I'm Long Halliburton
    Mon, Dec. 8 HAL 41 Comments

    Summary

    • Halliburton's $34 billion market cap currently makes it cheaper than ride sharing application Uber.
    • As a longtime liberal, I feel as if I violated a sacred law by investing in Halliburton.
    • While the price of oil may continue to fall, insider buying at Halliburton suggests that the bottom may be in.
  • Aethlon Medical Inc.: Total Scam Or Legit Company?
    Mon, Dec. 8 AEMD 57 Comments

    Summary

    • Aethlon Medical has grabbed headlines recently after it reported its medical device, the Hemopurifier, contributed to the recovery of a Ugandan doctor infected with the Ebola virus.
    • Dating back to 1999, Aethlon has been touting its Hemopurifier the cure-all device for nearly every virus simply through blood purification, oddly always concurrent with whatever threatens to wipeout humankind.
    • The company has also been diluting its common stock since 1999 at an average rate 38%.
    • While there may be some truth to Aethlon's claims, it has been fifteen years and still the company has been unable to initiate human trials in the US.
    • For now, I'm not touching Aethlon before it 'purifies' me out of my money.
  • Creative Edge Nutrition's Latest PR Stunt Leaves Shareholders Dazed And Confused
    Thu, Nov. 20 FITX 145 Comments

    Summary

    • As of Wednesday, November 19th, 2014 all of the officers and directors of Creative Edge Nutrition have resigned, effective immediately.
    • The company stated in the same press release that its subsidiary, Cen Biotech, is to become its own publicly traded company.
    • The move was unexpected and has left many scratching their heads, for it is unclear whether there is any value to owning Creative Edge Nutrition shares.
    • Until further clarification, this stock should be avoided entirely, even by those wishing to invest in Cen Biotech.
  • Update: SFX Entertainment's Q3 Report Raises Concerns
    Mon, Nov. 17 SFXE 15 Comments

    Summary

    • SFXE posted disappointing earnings on Friday.
    • Despite significant growth, there is doubt that SFXE's growth is sustainable given the uncertainty of the Electronic Dance Music ("EDM") market.
    • While the company has not closed its doors yet, SFXE has not been able to record a single profitable quarter from operations.
  • Losing All Faith In Creative Edge Nutrition
    Fri, Nov. 7 FITX 160 Comments

    Summary

    • The town of Lakeshore has put out a press release stating very clearly that Cen Biotech is not 'grandfathered in' and will have to reapply for zoning.
    • In the past few months, share price of FITX has tanked -70% and can easily continue to fall.
    • Due to the negative backlash from the community, the company is now starting to look at other municipalities for its marijuana facility.
  • LinkedIn: Trouble Lurks
    Wed, Nov. 5 LNKD 6 Comments

    Summary

    • Despite warnings of 'soft growth', Linkedin rallied after earnings.
    • CEO Jeff Weiner has personally pocketed $31.5 million after selling 148,000 shares since September 2014.
    • The toxic financing recently announced suggests the company's financial position may not be as strong as some may have originally thought.
  • InvenSense: Why I Jumped In After Earnings
    Wed, Oct. 29 INVN 30 Comments

    Summary

    • The selloff after earnings on Tuesday, Oct 28th, was a great buying opportunity given the growth prospects of wearable technology.
    • The conference call presented both positives and negatives moving forward, such as Mr. Detinger's anticipation of surpassing 35% growth yoy.
    • InvenSense 90.2M in revenues actually beat its own mean Q2 estimates offered during the Q1 conference call by +1.7M.
  • Ebola Hits NYC: Time To Panic
    Mon, Oct. 27 APT, BCRX, CMRX 16 Comments

    Summary

    • Dr. Craig Spencer of Doctors Without Borders is being treated at a New York City hospital after contracting the Ebola virus in West Africa.
    • Best case scenario is that there will be a maximum cumulative 27,000 cases by January 2015. Some estimate it could be as high as 1.4 million if no measures are.
    • The experimental Ebola drug VSE-EBOV, which was found to be 100% effective on monkeys who contracted the disease is currently being imported. Are Ebola biotechs safe?
  • What's Going On With Those Pesky Pot Stocks?
    Sat, Oct. 25 CBDS, FITX, NTRR 112 Comments

    Summary

    • With volume drying up, a couple of pot stocks have tried going 'viral' to stay relevant.
    • Gary Johnson wants to cure Ebola with cannabinoids.
    • Derek Peterson goes after twitter-trolls.
    • Bill Chaaban is on a safari adventure after having dumped an additional 15 million shares for just under a million dollars.
    • Pot-stocks are becoming a bad punch-line as shareholder value continues to diminish.
  • Amazon Shortchanges Investors Going Into The Holiday Season
    Fri, Oct. 24 AMZN 8 Comments

    Summary

    • $377 million in stock-based compensation helped Amazon report net losses of $437 million or -$0.95 per share for 14Q3 compared to last year of $41 million or -$0.09 per share.
    • Guidance offered no comfort for edgy investors, projecting operating losses of up to -$570 for 14Q4.
    • Amazon's stock price tanked after-hours, indicating that investors are fed up with management.
  • Why Did Baupost Double Its Stake In Keryx Biopharmaceuticals?
    Mon, Oct. 13 KERX 6 Comments

    Summary

    • When Baupost makes a buy, investors pay attention.
    • The fund recently doubled its stake in Keryx, and now owns 19.8% of the company.
    • 1 in 10 American adults have some level of chronic kidney disease (CKD).
    • Current treatments for hyperphosphatemia in patients on dialysis are ineffective.
    • Most recently, Keryx has secured a U.S. patent for ferric citrate as treatment of hyperphosphatemia.
  • Ebola Stocks: A Real Portfolio Killer
    Mon, Oct. 13 APT, CMRX, ESV 34 Comments

    Summary

    • With the first case of Ebola hitting US soil, the Ebola momentum stock have taken the market by storm.
    • Where there is volume, there will be penny-stock opportunists trying to take advantage of investors.
    • PositveID, Sanomedics, and NanoViricides have come out of the woodwork claiming to offer investors opportunity to catch the Ebola plays before they go viral. I'm cautious.
  • SBA Communications' Equity Is More Than Just Silly
    Sat, Oct. 11 SBAC 17 Comments

    Summary

    • Earlier this year I covered SBAC, focusing on its 'silly' valuation. Well, SBAC's valuation didn't correct; it just became sillier.
    • To pay off its debts, SBAC issued nearly $4B in new debt securities this year.
    • In a perfect world, SBAC will have a never-ending source of funds to pay off its debts. .
  • SFX Entertainment: The Party Is Just Getting Started
    Thu, Oct. 9 SFXE 6 Comments

    Summary

    • SFXE's share price has tumbled nearly -64% since its IPO and recently tumbled -34% since announcing the issuance of a $75 million debt.
    • Profitability in Q3 and Q4 will be crucial to determine the longevity of a SFXE investment.
    • The festival experience has intrinsic value that makes SFXE an attractive investment long-term.
    • Until Q3 results are in, I see the possibility for a bullish correction between $5.33 and $6.39.
  • Creative Edge Nutrition Fiasco: Lakeshore Tells Health Canada, 'Not In Our Backyard'
    Mon, Sep. 29 FITX 198 Comments

    Summary

    • Residents of Lakeshore request that Health Canada not issue Cen Biotech a license.
    • The company does not have municipal approval and is not complying with zoning by-laws.
    • Remember: Money missed is better than money lost.
  • Higher One Holdings: A Bull Case Underneath The Short Thesis
    Fri, Sep. 26 ONE 3 Comments

    Summary

    • The litigation against Higher One Holdings makes this company an easy target for a short attack.
    • The company will most likely be in default of its credit facility agreement due the costs of the lawsuits.
    • Higher One is not in danger of bankruptcy; in order to stay in business the company will need to amend its credit facility agreement or find a new lender.
  • Amazon: Signs Of Trouble Ahead
    Fri, Sep. 26 AMZN 61 Comments

    Summary

    • Labor strikes in Germany expose Amazon's dependence on exploitative labor to deliver cheap prices for consumers.
    • Investors are getting short changed by management who are taking 56% of the company's operating incoming in stock based compensation and leaving only 12% for investors.
    • International growth for Amazon might be stunted with the rise of Alibaba.
  • Who Says Investors Can't Be Eco-Friendly?
    Tue, Sep. 23 ARCI 1 Comment

    Summary

    • Appliance Recycling Centers of America ("ARCA") is trading at a deep discount with P/E of 4.2 and a P/S of .13.
    • Growth has been steady yoy, even while the company transitions the emphasis of its operations from retail to recycling.
    • ARCA at current valuation offers a 59% margin of safety for investors with a growth value of $4.85 per share and a terminal value of $2.43 per share. .
  • 'It Could Get Better' Makes For Lousy Investment Advice
    Mon, Sep. 22 YHOO 5 Comments

    Summary

    • Yahoo's cash windfall from the Alibaba IPO has some analysts clamoring that the struggling tech company now has a chance for a bright future.
    • For the past several years, Yahoo has been supplementing its revenues from sales of patents, assets, and of course, its stake in Alibaba.
    • Yahoo's partnership with Microsoft generates a third of its revenues of which Microsoft claims 12% currently and will be entitled to 17% in the future.
  • This Cloud's Silver Lining Isn't Worth The Risk
    Fri, Sep. 19 ADBE 9 Comments

    Summary

    • As a technology growth company, "soft growth" could be the kiss of death for Adobe Systems Inc.
    • Deceleration has negatively impacted Adobe's bottom line.
    • Since shifting its operations to Cloud-based subscriptions, Adobe's SG&A costs have increased while gross profits have declined, suggesting an increase in competition.
  • Update: Radioshack's White Knight
    Thu, Sep. 11 RSH 25 Comments

    Summary

    • Earlier this month I discussed Radioshack's possibility of survival.
    • UBS and Standard General are now believed to be preparing a loan that will help Radioshack avoid bankruptcy.
    • Even with a fresh injection of cash, Radioshack's odds of survival are low but nevertheless attractive for a risk-prone, contrarian investor.
  • RadioShack Just Might Have A Shot Of Survival
    Tue, Sep. 2 RSH 52 Comments

    Summary

    • RadioShack's refinancing rumor with Standard General has galvanized speculation.
    • The company has been in decline for over a decade at a rate of 3.3%.
    • Although many have declared RadioShack's bankruptcy imminent, several Hedge Funds have taken new bets in the event of a surprise recovery.
    • If injected with fresh capital, CEO Joseph C. Magnacca may get the time he needs to revamp and revitalize the struggling retailer.
    • RadioShack presents an interesting contrarian opportunity in the event that the refinancing deal is finalized.
  • Veritiv Corp. For The Value Investor?
    Tue, Aug. 26 VRTV 18 Comments

    Summary

    • Value investor Seth Klarman recently took a 14.06% stake in Veritiv Corp.
    • Veritiv is the result of International-Paper spinning off its subsidiary Xpedx to merge with Unisource Worldwide.
    • Veritiv principally operates in three areas: Print, Packaging, and Facility Solutions.
    • Veritiv presents opportunity for the value investor with corporate synergies and as it trades at a discount to book value.
  • Getting SLAPPed By Penny Stocks
    Wed, Aug. 20 EAPH, FITX, GTHR 20 Comments

    Summary

    • After publishing a less-than-favorable article on Creative Edge Nutrition, 10%+ stakeholder and stock promoter Randy A Hamdan filed a defamation lawsuit against me.
    • SLAPP lawsuits are intended to silence and intimidate vocal opposition through filing lawsuits that cause the defendants debilitating legal fees.
    • Other companies in the marijuana sector, like Easton Pharmaceuticals and Terra Tech, have also threatened litigation in what appears to be an attempt to discourage healthy public discourse.
  • SBA Communications Is Vulnerable To A Deep Correction
    Editors' Pick • Mon, Jul. 28 SBAC 12 Comments

    Summary

    • With $2.527 billion in losses, SBAC might be one of the most overvalued stocks in the market with a potential 90% downside.
    • Since 2002, SBAC is up 47,000%, trades at a P/B of 84.29, debt to equity of 38.07, and -0.262 EPS TTM.
    • Small cells pose a threat to the expansion of large and expensive wireless cellular towers.
    • Having historically high short interest, SBAC's continual increase in share price appears to be the result of several cycles of short squeezing.
    • SBAC's peak 106% institutional ownership plus all-time high share price of $104 suggests the security has little upside and leaves the retail investor vulnerable to a market correction.
  • The 6 Red Flags Of Creative Edge Nutrition
    Wed, Jul. 23 FITX 190 Comments

    Summary

    • Without a license to sell marijuana, I project a -97.5% downside, valuing FITX at a maximum $5 million.
    • When an inaccurate article appeared in Forbes Magazine touting that FITX had a license to sell marijuana, FITX falsely claimed the story was true.
    • In 2013, insiders were issued a total of 75.92% of the o/s. A shareholder who was issued 12.5% has been sued by the SEC for orchestrating a Pump and Dump.
    • CEO of FITX, Bahige (Bill) Chaaban, sold and proposed to sell the maximum allowable amount of shares from April to June, or 33,424,175 personally taking in over $2.1 million.
    • President/Secretary/Director of RXNB, Dr. Sam Alawieh, had to issue a nationwide recall last year for products produced out of his pharmacy Rxtra Solutions.