Windstream Rebuttal To GeoInvesting Report Unimpressive

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The GeoTeam


  • WSTI CEO,CFO and COO filed a form D indicating they intend to sell shares and that they have already sold shares.
  • More clarity provided on the fact that Vanguard Financial Trust shares are not disclosed in WSTI’s 2013 10K.
  • Per 2013 10K, WSTI had a large outstanding liability with its product manufacturer that was inhibiting it from receiving additional units.
  • WSTI restructured terms of $1.4M note that went into default in 2012. No note payments made as of Q1 2014.
  • Why is WSTI's largest investor an alleged penny stock promoter?

On July 7, 2014 Dan Bates, CEO of Windstream Technologies (OTCPK:WSTI), issued a rebuttal press release to our short thesis article that we published on Seeking Alpha on July 1, 2014. The CEO challenged some of our evidence even went as far as to state that:

"Either the author(s) does not know how to read public filings or has elected to ignore the public filings containing the correct information."

The following article addresses the CEO's rebuttal comments and in our opinion shows management's inability to understand its own filings.

But before we discuss the specifics, investors may want to know that despite all the great news issued by WSTI, the CFO, CEO and COO have sold some stock as disclosed in a Form D filed on June 6, 2014. It appears that they have already sold $406,800 worth of stock.

1. The claim of 7.8M shares missing from Vanguard Financial Trust ("VFT")

Dan Bates attempted to address our inquiry into share transaction activity by VFT:

Company Statement:

"An article alleges that 7.8 million shares have "mysteriously disappeared."

In fact, Vanguard Financial Trust ("VFT"), our single largest investor, is an insider and cannot sell its position. VFT currently holds every share purchased, which is 9.9 million shares with warrants totaling 2.8 million shares. Those disclosures have been made by VFT and the Company.

In fact, the article is incorrect in its representations of share amounts, history of purchases and assertions of a divestiture. Either the author(s) does not know how to read public filings or has elected to ignore the public filings containing the correct information."

We will take this opportunity to issue a timeline of events relating to WSTI's filing disclosure of VFT equity ownership in WSTI. We originally questioned why WSTI' s 2014 10K filing did not show VFT's ownership

This article was written by

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GeoInvesting has worked diligently over the last decade to understand and benefit from working in areas that the Wall Street “crowd” has avoided – namely, microcap stocks. This niche of the market, while mostly ignored by analysts and financial media, is still often quietly invested in by many well-known billionaires. We apply our own deep-dive analysis in the space to find pockets of information arbitrage and unnoticed opportunities that have acted as the backbone for our investing success for over a decade. Unlike some investment banks and sell-side analysts, we don’t get paid by companies to write about them. --Armed with over a dozen analysts and a team of on the ground due diligence experts led by Maj Soueidan’s three decades of full-time investing experience, we look for high-impact idea generation. If you are looking to broaden your knowledge of investing, GeoInvesting can help with actionable insights on a wide array of stocks. -- Since GeoInvesting’s inception in 2007, we’ve been helping investors understand companies better by interviewing management teams, dissecting conference calls, interacting with our wide network of investors and scouring financial documents for hidden clues. GeoInvesting provides quick, concise and efficient research instead hundreds of pages of meaningless boilerplate jargon to pour through. You will no longer have to sift through these documents to find the most relevant aspects of a company’s operations, results and guidance – that’s our promise. --Sign up today and start to get: >Education on investing, both financial and psychological>Actionable Alerts>Exclusive Research>Trading Ideas>GeoTeam Positions>Access to the GeoTeam through our exclusive chatroom.--See GeoInvesting Micro Insights on Seeking Alpha Marketplace--About Maj Soueidan, co-Founder GeoInvestingMaj Soueidan is a full-time investor of 30 years. He co-founded GeoInvesting to bring institutional quality investment research to the individual investor and help broaden the awareness of the opportunities that exist in the inefficient micro-cap universe. In addition to educating investors on winning equity strategies, Mr. Soueidan has been on a mission to protect investors from fraud and pump and dump schemes. He introduced the “China fraud” to Geoinvesting and through his research process, identified dozens of U.S. listed China stocks he concluded were frauds, so that the Geoinvesting team could perform exhaustive on-the-ground due diligence research on them, including Puda Coal and Yuhe Intl. -- Maj works with and manages the GeoInvesting Team on a daily basis to increase its investment opportunity pipeline and heighten GeoInvesting’s awareness in the financial markets to intensify its market influence. He stresses the concept of “information arbitrage” in an era where information overload has actually made it more difficult for investors to locate profitable information. An information arbitrage exists when a disconnect between stock prices and available public information on a company is noticeable, and monetarily worth pursuing. ----------------------Other Publications:SanaCurrentsGeoInvesting has partnered with Bill Langbein of Sanacurrents to explore biotech opportunities through the publication of sentiment reports.--Before founding SanaCurrents, William (Bill) Langbein spent more than 20 years as a life science business journalist, with stops at California Medicine, In Vivo and Reuters Health. During that time, he wrote on genomic discoveries, the transition of the pharmaceutical companies to rely more on biologics, and the dawn of precision medicine, through which most drug developers came to recognize a one-drug-for-all approach would no longer work. --Because of the inherent volatility of biopharma and medical devices, small companies typically fly under the radar of investors. The emergence of precision medicine, however, reduces the volatility of small companies and increases the potential for strong returns. SanaCurrents was founded to identify the undervalued therapies that would benefit patients and investors the most. Find out more about SanaCurrents here -

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