Summary ProActive Capital seeks to provide clarification. The firm says it was unaware of the Dream Team website. ProActive has now severed ties with Tech Guru, and says the contract in the article was not the actual contract with Tech Guru. Prior to my article last week discussing ProActive Capital, I approached that firm for comment. However,…
This article is the opinion of the author. Nothing herein comprises a recommendation to buy or sell any security. The author is short INO and UNIS. The author may choose to transact in securities of one or more companies mentioned within this article within the next 72 hours. Note #1: Prior to publishing this…
Note: At least 13 recent articles covering CytRx have been removed from circulation at Seeking Alpha, the Wall Street Cheat Sheet, Motley Fool and Forbes. Many were removed in just the past two days. A list of these removed articles is shown at the bottom of this article. The author has preserved PDF copies of…
The following is a partial list of archived articles on CytRx which have been removed from circulation. I expect to continue uploading additional articles on CytRx and other Dream Team clients going forward. sa_cytr_2013_12_12_JohnMylant sa_cytr_2013_11_19_JohnMlyant sa_cytr_2013_10_13_JohnMlyant wscs_cytr_2014_02-04_JohnRivers wscs_cytr_2014_02_03_JamesRatz wscs_cytr_2014_01_22_JamesRatz wscs_cytr_2013_12_18_TomMeyer wscs_cytr_2013_12_16_JamesRatz wscs_cytr_2013_12_13_JamesRatz wscs_cytr_2013_12_11_TomMeyer wscs_cytr_2013_12_05_TomMeyer wscs_cytr_2013_10_01_TomMeyer
Company overview Sungy Mobile (GOMO) is a US listed Chinese ADR. The company’s main product is a downloadable “app” for Android phones which allows users to customize their icons and wallpaper. The company currently has a market cap of approximately $900 million and trades on a PE ratio of over 100x. The stock is very…
My last short article discussed Farmer Brothers Coffee (FARM) and since that time, the stock has come off by nearly 20% without much of a bounce. Prior to that, I discussed Unilife (UNIS), which is now down by 15-20% for largely the reasons I predicted. Before that, I highlighted unacknowledged and low-priced product competition for…
Background Farmer Brothers coffee (FARM) was founded in 1912 by Roy E Farmer. The company is headquartered in Torrance, CA, which location also serves as a manufacturing and distribution hub. The company became publicly traded in 1951 and for a while was profitable and paid a dividend. Yet the company has now failed to generate any annual…
Investment considerations As bulls and bears debate their longer term expectations for revenues at Unilife, many have missed the fact that there are near term catalysts which can be expected to have a very certain impact on the share price well before these longer term forecasts have a chance to play out. Investors should also…
Organovo Holdings (ONVO) has doubled in the past two weeks and now sports a market cap in excess of $1 billion with a share price of $12-13. The company has 58 cents per share in cash following an equity raise at $4.50 in July. Aside from that, total assets for the company amount to just $1 million. The company currently has no products on the market, but hopes to launch a 3D liver assay in December 2014. However, detailed market analysis reveals that total market potential for this product is only a few million dollars. There are already competing 3D liver assays on the market which sell for as little as $1,750. Swiss company Insphero reveals that the market size for these assays is at most a few thousand units per year. The stock has recently doubled due to a tremendous wave of articles which suggest that Organovo is on the cusp of generating hundreds of millions of dollars in near term revenues. The stock is held 93% in retail hands and has no institutional research coverage. As investors realize that the best case if for $3-5 million in revenues over the next 3 years, the stock should be due for a meaningful correction. Meanwhile, insiders have been selling millions in stock and have filed a massive S8 registration statement by which they can award themselves 11 million more shares, valued at $130 million. Additional concerns are highlighted herein. In the near term, Organovo should be expected to drop by around 50%, returning to the $5-7 level where it was just two weeks ago.
Investment thesis TearLab Corp (TEAR) has so far managed to drive moderate increases in revenue over the past year, but only by spending a disproportionate amount on marketing. The result has been ballooning losses in every quarter. The company has never earned a profit. Following dozens of recent calls to the offices of eye doctors,…
Investment thesis Restaurant stocks have been going through a very tough earnings season. Of the six restaurant groups to have reported so far, five have reported earnings misses. As a result, there has been significant share price weakness following earnings at companies such as Ruby Tuesday’s (RT), Darden Restaurants (DRI) and Dominoes Pizza (DPZ). Ignite…
Promoters of Kandi have recently published inaccurate information which led to a 40% rise in the stock. The most recent article has since been pulled from Seeking Alpha and the stock has already declined by 23%. Further declines of 30% or more are expected in the next few days as investors come to grips with the true facts.
On Wednesday August 7th, Biolase Inc (BIOL) announced Q2 results. The company missed analyst estimates by 2 cents and updated investors with guidance at the lower end of previously given ranges. Missing earnings is never a good thing. But as earnings misses go, this one was certainly not catastrophic. Despite the moderate nature of the miss, shares…
In July 2012, the Whiting USA Trust (WHX) was trading at $18.00 and had just paid one of its highest ever dividends. Whiting had long been subject to heavy criticism due to the unsustainable nature of its dividends which were based on finite oil and gas reserves. Each time a negative article surfaced, the retail…
I last wrote about Organovo Holdings (ONVO) on July 24th. Since my last article, there have been several new developments which further reinforce the short thesis on the stock. The stock has continued to fall as expected. First, the S3 registration statement for up to $100 million of new shares and/or warrants has now become…
Organovo (ONVO) is about as hot as any concept stock could ever be right now. It sits right at the crossroads of 3D printing and regenerative biotechnology. In addition, Organovo just uplisted from the OTCBB to the NYSE, further fueling the strong enthusiasm. Following the uplist, Organovo soared from $3.90 to $8.50, a gain of…
MiMedx Group (MDXG) is a very interesting company which could potentially have a promising future. But at the current price there is now substantial downside risk with very little chance for further upside. There have been a small number of factors which pushed its share price up by 60% in recent weeks, making its peak gains…
Two weeks ago, I wrote an article on Erickson Air Crane (EAC). I predicted the stock would decline by 50% once the market better understood the company’s troubled situation. Erickson declined by 25% that day. Before the day was even done, law firms began announcing investigations into breaches of fiduciary duty by Erickson. Following…
Not long ago, ZM Funds was in a serious pickle. It was the largest holder of $120 million in second lien debt from a deeply distressed helicopter operator called Evergreen Helicopter. Evergreen has received a going concern letter from their auditor. It was in default on its debt. It was not even paying its accounts payable to such an extent that suppliers began…
On Wednesday, ChinaBak Battery (CBAK) jumped by as much as 65% to $1.63 on tremendous volume following widely circulated (but entirely false) rumors that the company will be supplying lithium ion batteries to Kandi Technologies (KNDI). On the previous day ChinaBak had been trading at around 90 cents, with a market cap of just $10…
