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Individual investor. Ten years as full time trader. Over twenty years of investment experience. Day trader as well as looking for value and swing trades mainly in small caps. Will trade both long and short.
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  • LiveDeal: (LIVE) Questionable Parties Reunite,Investors Beware

    This article was originally submitted April 20 ,2014 but rejected by SA. Decided to update and release as Instablog cause it consolidates a lot of my tweets on company into one article.LiveDeal(NASDAQ:LIVE) a company that has been on the short radar of traders since the beginning of 2014 due to a parabolic 700% rise in the first month and a half of the year. The stock has since declined steadily until April 17 when it jumped 23% on a technical bounce aided by a column from TheStreet to close at 5.40 with a market cap of $73.2M. The price has since retreated 30% on some negative articles and the dismissal of their auditor. Still sporting a $52M market cap with trailing FY revenues of $2.37M and losses of $5.1M. The company reasons it is in a transitory state while it rolls out its unique real time,"deal engine". This "deal engine" looks to be a replica of ads previously displayed on Groupon,Yelp or other ad sites. The company admits in filings they are not gaining any revenue from the concept currently. The company's current management is yet to hold a conference call or do a road show which could give it an air of legitimacy. All we have seen is endless paid promotional press releases

    What has interested me and sprouted many red flags is the history of the majority owners, led by LIVE President,CEO,CFO Jon Isaac in a previous high profile stock Have seen mentions of Isaac Capital Group and the relationship with VelaTel (OTCPK:VELA) last trade .0011. This is just the tip of the iceberg on the story behind the group which in December 2011 acquired a 69% interest in LIVE for just $2M.VelaTel may not be a familiar name, but its predecessor China Tel (CHTL) is. China Tel was a favorite of Fox News' stock tout Tobin Smith and a darling of numerous other stock In 2009 Antonios Isaac and his company Negotiart was hired as a consultant by CHTL to help in finding needed This led to the Mar 5,2010 pr of Antonios' son Jon Isaac, unknown until then, making an astonishing special purchase agreement of $320M for 24% of CHTL valuing shares trading around $1 at $3 in the spa. The stock spiked that day to $1.80. The deal was strangely structured so that only $1M was needed as down payment with another $10M paid 1st There were never other payments made to my knowledge,stock eventually collapsed from a split adjusted price of near $200 as CHTL became tied to the famous Westmoore ponzi scheme. After those reverse splits it trades today at .0011

    One could think maybe Isaac learned his lesson and turned over a new leaf. Not likely when examining the rest of the players involved in the current LiveDeal. On the Dec 12,2011 change of control financing the other purchasers were Kingston Diversified Holdings LLC,John Kocmur,Lausanne LLC and Augustus Gardini. Through searches I have determined Augustus Gardini principal is Jason Sugarman of MKA Capital which was tied through lawsuits to Lausanne LLC is Daniel White general counsel to MKA Capital. Kingston Diversified has been linked to paid promotion of VelaTel. John Kocmur looks to be a legitimate real estate manager,but is not on the board or management team. Isaac crony one Kenneth L.Waggoner replaced Greg Leclaire on the board of directors Jan 27,2014. Waggoner is the former Executive VP of CHTL and recently named President and CEO of Nuvilex (NVLX).

    Which leads us to Stock Market Media Group or SMMG. They have been paid $40K so far in an endless pr campaign to inflate the LIVE stock price. SMMG has also been paid $78K to promote NVLX and $42K to promote Plandai Biotechnology (OTCPK:PLPL) The link there is Waggoner as well as LIVE Sr. VP of Corp Strategy Tim Matula."Surprisingly" Matula is on the NVLX Board of Directors,formerly head of Investor Relations and Chairman of The Scientific Board of PLPL and most importantly long time head of Investor Relations at CHTL.

    It looks to me like LIVE is headed down the same path as CHTL. Uniting numerous participants of the legendary China Tel stock scam and on their way to cheating honest investors out of their cash. LiveDeal has only declining revenues ,endless paid promotion,cheap convertible shares issued to Isaac and a new attempt to fleece more clueless investors with an at the market offering through Chardan Capital. One more item they share with CHTL is the favorite auditor of many, mainly China scams, Kabani and Company. I believe this should trade only near their cash value which is under $1. Investors Beware.

    Disclosure: I am short LIVE.

    Tags: LIVE
    May 12 8:30 AM | Link | 6 Comments
  • ORSUS -ORS:How the SEC Unknowingly Aids a Worthless Pump
    Orsus -ORS a non descript penny stock floundering on the AMEX has suddenly become the darling of the daytrading momentum crowd.Ever since reporting its lowest quarterly revenues ever on May 23rd of 3.91M and reversing $32M of bad debt to show a non cash earnings of 12.73 the company's share price has gone bonkers with single day gains of 120%,100%,58% in the last couple weeks.Trading volume has increased from under 100k to above 1.6M on the 4 days of biggest gains.This must be a hidden gem in the sea of Chinese RTO.WRONG-this has been an unabashed manipulated pump aided by the SEC recently enacted alternative uptick rule which goes into effect anytime a company's stock hits the threshold of -10% on any given trading day and then continues through the close of the next trading day.ORS has been protected by this absurd manipulative rule on days when it has been UP 120%.As an example on Thursday the stock popped an eye opening  45% to $2.90 and yet on Friday when it trades to $2.60(normal profit taking) the assinine uptick rule will take effect until the close of trading on Monday at 20:00 et.

    Examining this company by doing little more than reading their latest filings reveals this darling is on the edge of bankruptcy.They do have 26 employees who were not paid during some months of 2010 and who could not be paid in Q1 of 2011.ORS has $4 in the bank(gotta believe a piggy bank).They have over $10M in loans overdue.Whatever product they are producing they aren't getting paid for as accounts receivable had increased from $81M at year end 2009 to $99M on Sep 2010 on revenues of $19.9M do the math. Over 90% of their increasingly obsolete handsets are sold to their "longtime business partner" Beijing Xingwang Shidai Tech & Trading Co .This in itself reeks of possible fraud/siphoning of cash.Ask yourself what company would continue for all of its existence to sell 80-90% of their product to a distributor who at best pays for 40% of what they receive and in turn puts your own prospects on life support.ANSWER something is seriously wrong here.To add a little icing on the cake their auditor is Los Angeles based Kabani & Company the same auditor of 1 of the most famous Chinese stock scams Bodisen Biotech.  not a stellar roster of current and past clients to be sure.Check out this ominous quote from a May 14,2011 published article
    "There may be honest firms in China, but you can't monitor or control them," said Hamid Kabani, president of Kabani & Co in Los Angeles, a firm that has audited reverse merger stocks. "I can't see how a U.S. firm can satisfy whether the (Chinese) firm is (is legitimate)."So I gather ORS books have never been verified on site but only by documents the auditor has received from the company. Exact circumstances which have been the basis behind the 30 or so China stock halts and delistings this year.ORS has stated in the most recent 10-Q
    The Company did not pay salaries and welfare to employees in the first quarter of 2011 due to a difficulty in cash flow.Also without further financing or a capital raise the company only has enough cash to operate through June 30,2011.In summary this darling is truly a risky adventure for those left holding the bag when the lights are almost certainly turned off.I am short ,my target price is $0.Final note I have inquired to the SEC as well as the AMEX as to how this farce has maintained its listing.Awaiting a reply on that matter.
    Jun 10 7:47 AM | Link | 1 Comment
  • ARCA Bio Red Flags Abound

    My first blog post. I am detroitblues Really wanted to get my research and information out on ABIO the short sale which cost me dearly on Friday. Easier in a blog than 140 word tweets. Posted most of these thoughts passionately on Yahoo tonight.Will try to summarize into this blog post.

    Saw the news on patent Friday and researched saw all news had been previously released and never really moved the stock. Mistake of shorting and worst trade for me in over a year. Totally screwed up by not stopping out and not realizing incredible volume was not going to allow for any price correction.

    Many thinking this could be next ten bagger ie another VRML DNDN VNDA and they are so wrong. Here are the facts in my research. Fast track designation in no way hints the drug bucindolol is any way near approval. Just google fast track designation and you will find companies such as NVLT fast track  given 2006 company currently 23 cents a share on otcbb. Try OSIR fast track PROCHYMAL Jan. 8 2007 currently in phase III trial over 3 years later. OSIR stock price near $30 Jan 2007 now $7.75. Not the automatic quick approval the uninformed are hyping. Quite the opposite company issued complete response letter by FDA June 2009 as FDA did not approve and requested more clinical trials. Companies study protocol for review was filed 12/22 and revised on 3/25/10 so still has not even received approval for a trial. After trial approval and funding it will be at least 1 year till it commences and 2 more years of trials. There will be needed cash raising and the outstanding shares will balloon.

    This company was brought public Jan 2009 reverse merger of Nuvelo red flag. Stock spiked to $15 awaiting FDA and then dropped to $6 when unable to approve. Company released 40 of 62 employees in cost savings move. Stock continued to dip going concern was issued and company needs to raise cash. On 12/8 filed with Wedbush for a $10 million offering to sell during market hours as I understand whenever timing was good(maybe Friday) prospectus was looking at 3.5m shares or so. Does this sound like the next 10 bagger wonder stock? Is the biotech community so blind that they wouldn’t try to bring this to market as IPO or it would at least have some analyst coverage. This is a highly speculative stock with one failed trial .

    Some are making big news of patent . Company noted they were going to get this patent in early January stock never moved. Patent is worthless if the underlying therapy is never approved. In summary nothing about this company changed Friday except possibly that the trial is now delayed until 2011 instead of late 2010 which company had hoped for. Approx. $42 to $60 million (if shares were issued) was added to market cap for no reason other than a momentum driven short squeeze.

    Stock may gap up Monday on massive pump this weekend by longs but in my opinion it will come back to earth before long and one day could go as low as zero.If thinking of riding this move do yourself a favor and read the companies filings at its free and could save you $$$$$$.

    Disclosure: Short ABIO
    Tags: ABIO
    Mar 28 1:47 AM | Link | Comment!
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