Don't Get Dunked In The Ld Holdings Pool Of Hype

The GeoTeam profile picture
The GeoTeam
27.84K Followers

Most of GeoInvesting's screens consist of compiling lists of stocks to watch based on various fundamental criteria. However, we also follow stocks that we predict may be ideal pump and dump candidates or ones with stories that just seem too good to be true. We've published exposés on five stocks so far, Raystream (RAYS), Sefe Inc. (OTC:SEFE), Great Wall Builders (OTCPK:GWBU), Dimi Telematics (DIMI.OB), and Organovo Holdings (ONVO), all of which have seen their shares fall sharply shortly thereafter.

Once in a while we get lucky and make money by purchasing a speculative stock in the pre-pump phase, mindful that almost every one of these sexy stories will ultimately dump; the only wild card is when this will happen. We believe that Ld Holdings (OTC:LDHL) will be the next stock to dump. LDHL popped up on our speculative screen on April 24, 2012:

After well over a year of no trading volume LDHL shares rose $0.04 to $0.06 on 24,000 shares. We could not find any press releases to account for the news. However, we were able to locate information in a couple of filings that could make this an ideal pump candidate. First, the company has outlined a new business strategy on page 5 of its 2011 10K that implies the company will grow to be a $420 million company in 5 years. Second, an April 19, 2012 8K implied that the company is about to embark on an investor relations campaign. Third, this same 8K disclosed that company just inked a consulting agreement with Financial Wellness, LLC. to assist the company in the development and implementation of its business plan. The consulting fee structure is highly dependent on near term stock performance.

Our article could not come at a better time as on September 17, 2012 the Wall

This article was written by

The GeoTeam profile picture
27.84K Followers
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 - https://seekingalpha.com/instablog/360252-the-geoteam/5261407-sanacurrents-new-service-dissects-biotech-catalysts-assigns-sentiments-outcomes-case-studies

Recommended For You

Comments (10)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.