Summary Shares of Flotek soared by as much as 46% on what looked like a surprise earnings beat. However the “beat” was a result of a single customer who accounted for nearly 20% of revenues. That customer was under a long-term contract which expired in April, jamming 20% of revenues for Flotek into a single…
Summary A new proposed ruling by the IRS looks set to disqualify SunCoke’s income for MLP purposes. This very subtle change is just now being spotted by more savvy investors who are already dumping the stock while they can. Without the MLP benefits, SunCoke could fall by 30-40% more. A similar change caused a rapid…
Summary Air Media rebounded on Tuesday as retail investors “played the bounce” in anticipation of a company response. After the company responded on Wednesday, the stock opened lower, traded down and closed at the lows of the day, down 12%. Air Media has now disclosed new information which is pressuring the stock. We can now…
Summary AirMedia has more than doubled in the past few weeks based solely on a supposed “investment” by A share company Shenzhen Liantronics. AirMedia did not disclose the actual contract, but did put out a press release touting a $500 million valuation. The real contract reveals that there is no binding deal. In fact, Liantronics…
Summary Heavily promoted by multiple paid promoters (including undisclosed). Stock has spiked to an all-time high. Company is out of cash and is delinquent in its filings. Management with close connections to past frauds. Expect a very near-term financing to drop the stock by at least 30-40%. This article is the opinion of the author….
Summary Companies who pay for stock promotion should be avoided. Period. Sell side research is woefully deficient and predictably biased. With technology, you get what you pay for. Lack of institutional ownership is a strong predictor of failure. Share price is a poor predictor of ultimate success. This article is the opinion of the author….
Summary Keryx has been marketing Auryxia off label conveying a “two for one benefit”. An “iron benefit” is absolutely critical to the successful marketing of the drug, but Auryxia has not been approved for this. Keryx has even marketed the detailed financial savings involved from this unapproved indication. Similar illegal marketing practices by Aegerion quickly…
Summary Advaxis stock has recently quadrupled from $3 to as high as $13. Management has a history of promotional and misleading activities, including heavy use of the Dream Team Group. Tumor response data for its lead candidate has been mis-presented to overstate effectiveness. ADXS-HPV has demonstrated notably inferior survival rates vs. alternatives. Over 3 million…
Summary Support for TLPS was the brainchild of John Dooley of Jarvinian. The background of Dooley and Jarvinian show the risks of unbalanced optimism for unproven technologies. Other wireless constituents continue to line up against Globalstar with the FCC. This article is the opinion of the author. Nothing herein comprises a recommendation to buy…
Summary Regulus is a retail heavy stock which has recently tripled on mere Phase I results. Regulus’ drug is not a one shot cure for Hep C and is inferior to Gilead’s Harvoni. As the stock has spiked, insiders and partners have been very quick to dump large amounts of stock. This article is the…
Summary CEO of Lion Biotech resigns following subpoena. Stock has fallen by 12% already. There is a wide web of parties with ties to Galena. Back in March, I highlighted the undisclosed paid stock promotions being run by the Dream Team Group in connection with CytRX (NASDAQ:CYTR) and Galena (GALE). In the wake of that scandal, we…
Summary Globalstar currently sits under a large debt load of over $600 million even as it loses money every quarter. The most recent quarter showed only $4 million of EBITDA, falling short of required targets in the credit facility. However, bankruptcy risk can be mitigated by taking advantage of the large market cap to conduct…
Summary Straight Path holds wireless spectrum and patent troll assets. The stock is up by 100% in the past month, and is held overwhelmingly by retail investors. Announcements that it was suing Apple, Verizon and others sent the stock soaring. But past awards to STRP have been consistently at just $1-$2 million from other giants….
Summary Even after a recent drop, Globalstar is still up 7x from its 2013 lows. Yet the financials have deteriorated to the point of functional insolvency. Globalstar has all the elements of promotion: mostly retail investor base, lack of top 20 research coverage and a volatile share price with no support. Understanding the promotional elements…
Summary The fallout from stock promotions can far outweigh the prospects for a promising drug. Responses (and denials) from management are best viewed with a large grain of salt. There are often significant and far reaching consequences that are often unexpected. Back in March, I wrote a detailed article about a stock promotion campaign being conducted by…
Summary Aemetis now has over $90 million in short-term debts coming due, but only $4.7 million in cash. The company has already begun defaulting on its short-term debts. This short-term nature is not reflected in the recent 10Q, due to an accounting technicality that has been missed. More serious accounting issues may have also been…
Summary ChinaBak recently soared from below $2.50 to $5.00 “news” that LG was entering the China EV market and on subsequent EV subsidy news from China. But ChinaBak is not even currently in the EV business and will likely derive zero benefit. Day traders are simply playing a dangerous game of greater fool. Creditors recently…
Summary Northwest Bio has been the subject of a massive promotional campaign which has seen the stock price soar. Many of the authors involved have close hidden ties to promotional firm MDM Worldwide and / or Redfish Creative. In some cases, authors have used fictitious identities and fake credentials within healthcare or finance. In fact…
Summary A recent report from Vista Partners sent OHRP soaring by 60%. The contents, including a $31 price target, was provided and paid for by Ohr management. Ohr stock had just collapsed to as low as $6.86 due to a recent failure of its drug in clinical trials. Squalamine was previously owned by Genaera Pharma….
Summary Investors and analysts have overestimated the market size for SBC-102 by at least 3-9x. Most sufferers of CESD can be treated by proper diet and common statins (i.e. Lipitor) without the need for a $300,000 drug. Management has now sold 95% of its stock, reducing combined holdings to less than 1% of outstanding –…
