Seeking Alpha

Citron goes after Medbox, shares lower

  • Citron Research accuses Medbox (MDBX -2.7%) of taking part in "multiple frauds," and declares shares of the marijuana dispensing machine/consulting services provider to be "worthless."
  • Citron observes Medbox announced last April it had Q1 2013 revenue "well in excess of $2 million," but reported Q1 revenue of only $1.75M in an SEC filing the following month.
  • The firm also claims only one Massachusetts Medbox client has seen its dispensary application reach Phase 2, and the the client had their leased signed over to them by Medbox. In addition, the company and founder Vincent Mehdizadeh are accused of engaging in a number of related-party transactions.
  • Citron's report (.pdf)
  • Previous: Marijuana stocks rally after banking rules set
Comments (12)
  • Hmn! Does it mean Citron has never been wrong once the stocks went onto pink sheets:

     

    When it comes to exposing fraud on the Pink Sheets and the OTCBB, Citron has NEVER
    been wrong. Yes, we know NEVER is a bold statement
    ...
    but it is what it is.
    18 Feb, 10:52 AM Reply Like
  • Citron was wrong about TSLA.
    18 Feb, 11:49 AM Reply Like
  • TSLA has never gone to gray market. It shorted TSLA but never accused it a fraud. That's the loophole.
    18 Feb, 12:07 PM Reply Like
  • Ok. Got ya.
    18 Feb, 12:17 PM Reply Like
  • Something Stinks with $MDBX , Sell now before the crash SCAM!
    18 Feb, 12:22 PM Reply Like
  • Where can chan get a share borrow on MDBX?
    18 Feb, 01:40 PM Reply Like
  • I hope this means we can buy back in around 20 cents?
    18 Feb, 01:40 PM Reply Like
  • Just because actual numbers aren't there, including other findings by Citron to show lack of any real intrinsic value per share, it still isn't worthless. Supply and Demand, or Fear and Greed, rather, do create value.

     

    "Go Go Gadget Speculatory-Speculation."
    18 Feb, 02:07 PM Reply Like
  • Citron is a short and distort research firm..just like muddy waters...they throw crap against a wall and see what sticks...they know they have a cult following of soft headed groupies, and the sheeples in the public at large will fall in line also...so how's it work? Here's the chronology...at some point in time actually do the work, and release a report that's surprisingly spot on...and then from there on out do quick hit pieces with words and phrases like "fraud" and "this stock is going to zero"...and while the "shit is hitting the fan" they cover and move on to their next unsuspecting victim...all the while hiding behind disclaimers like "this is just our opinion" etc...the SEC should up the anti on scumbags like this..
    18 Feb, 04:58 PM Reply Like
  • There are but a handful plays in this space worth speculating upon and this is one of them along with GWPH. Cannabis is the internet of 1995-6. Just like back then, all the plays, and there was just a handful went up as there was little supply. Is MDBX going to make it through "2000", who knows. However they are based in heart of the dispensary world, make a product that is def needed for inventory control. Buy a handful of a few and let noise commence. MWIP conceptually makes some sense, esp w new banking accommodations and a small mkt cap, as well as PHOT. However the grow light biz seems more like a "home gardener" product and that doesn't seem like that is where the market is. The market seems to need transaction processing, banking , and esp tight inventory mgmt /control (per regulatory scrutiny). For a market that is absolutely huge, +$20b, these stocks and most of the rest provide nowhere near enough investable supply. Longs and shorts are in for a wild ride. Let the noise begin.
    18 Feb, 06:29 PM Reply Like
  • Go Long $FSPM Real Deal they have the Best Product only 8 Million Shares, Not 3 Billion like some others that will take years to become profitable if ever. $MDBX well enough said, I won't be investing in that Sham 450 Million company NADDA. Investing A C-Note in some of these MJ stocks (WEED OUT) to see if they take off isn't too bad of a idea but beyond that most of them aren't worth it.
    18 Feb, 07:07 PM Reply Like
  • Thx & agreed. Most not worth it in 24-48 mos, however there are few plays conceptually make sense. Doesn't mean they will survive, but banking and inventory control are the keys in this infant mkt. The feds will be dispensing multiple proctology exams yearly and great records are the key to convince them & banks you are not laundering. That is the whole game to adoption & legitimacy, and the industry knows literally everything rides on it. Is mdbx problematic, perhaps, but their service space is critical.
    18 Feb, 07:30 PM Reply Like
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