Zagg: Glass Screen Protector Company Shattering Under Pressure
by Sonya Colberg, Senior Editor, 12/1/2015 9:44:36 AM
Zagg (ZAGG)shares have rallied near 52-week highs, all the more perfectly poised to shatter amid numerous lawsuits, market deterioration, an ongoing SEC investigation, an executive resignation, insider selling and a recent $100 million shelf filing which could bring excessive dilution.
Formerly known as the fumbling Chinese academic regalia manufacturer Amerasia Khan Enterprises, this Salt Lake City, Utah company makes screen protectors for smartphones. The company has turned in one of its worst net income reports since 2011:
(Source: SEC filings)
Though Zagg is currently expected to increase earnings about 13 percent to 68 cents next year, TheStreetSweeper believes it will not hit that figure. In our view, the market share will continue to fracture as customers turn to the vast number of cheaper alternatives.
Zagg has not responded to our request for comment but investors may find other viewpoints here. Meanwhile, here’s a look at the red flags indicating Zagg is poised to disappoint:
*Major Dilution Looming With Recent $100 Million Shelf, Insider Selling
Now that Zagg is trading high, insiders can’t wait to get out. The company just filed a $100 million shelf registration that could bring extreme dilution to current shareholders, available here. At the same time, seven insiders have been set up to sell their shares, further increasing that dilution potential.
Here are the lucky seven insiders who may now dump their shares:
(Source: SEC filings)
In October, CEO Randall Hales jumped out with the most recent insider selling with the disposition of 43,000-plus shares, shown here.
Both of these selling activities are fairly good indications that Zagg has approached peak price.
magicJack VocalTec: The Disappearing Business Trick
by Sonya Colberg, Senior Editor, 11/25/2015 9:43:58 AM
Any smidgen of magic left in magicJack VocalTec (CALL) is vanishing quicker than street magician David Blaine can make a new quarter disappear.
Now the former star of annoying, late-night TV commercials only wishes it could make its core business model reappear.
MagicJack offers a device that is plugged into the computer to allow consumers to make local or international phone calls for about $40 per year, plus $20 for service. Its second offering is VoIP or voice over Internet protocol for small or medium enterprises, an area dominated by the AT&Ts and Verizons of the world.
Though magicJack enjoyed an early out advantage in 2007, the benefits have fallen apart like a busted magic trick.
After an earlier reasonably-upbeat article, PC Magazine revisited magicJack in 2011 and rated it “fair,” adding: “(W)hen magicJack debuted, nothing else like it existed. That isn't the case anymore. In the face of competition, magicJack's poor interface, pushy attempts to up-sell you, on-screen advertisements for its own product, and general lack of support make it hard to recommend now.”
MagicJack faces numerous other issues that make the stock impossible to recommend now, including:
*Horrid consumer reviews
*Perilous declines in users, activations and app users
*Consumer market is disrupted by free alternatives, unlimited talk phone plans.
*Latest “enterprise initiative” features inexperienced businessman, limited overall potential
Investors may read other viewpoints here. Meanwhile, TheStreetSweeper breaks through the smoke and mirrors to reveal magicJack’s risky reality.
JAMN Finally Spills the Beans -- And It's an Ugly Mess
by Janice Shell, 6/2/2011 10:32:51 AM
To be sure, the 10-K offered investors little reason to sing. For starters, the filing reveals, this once-hot “coffee company” sells no coffee of its own at all. JAMN relies on a supplier based in frigid Canada – far away from the tropical Jamaican home of its co-founder Rohan Marley – to provide the company with an actual product to sell to its customers instead.
Back in April of 2010, JAMN inked a “supply and toll agreement” with Canterbury Coffee of British Columbia that gave it access to some brew. According to that agreement, JAMN relies on Canterbury to fulfill every role – save a minor one – normally satisfied by a firm that classifies itself as a coffee company. Canterbury purchases the coffee beans. It roasts them. And it then packages them in bags supplied by JAMN – the company’s only real product – for sale to the public.
JAMN signed this deal more than a year ago, right before Shane Whittle – a notorious Vancouver stock promoter – officially resigned as CEO of the company. But the company never mentioned that agreement, seemingly material enough to warrant at least a quiet 8-K report, in a single regulatory filing until now.
Jammin Java (JAMN): Hot Stock ... Bitter Aftertaste?
by Janice Shell, 6/2/2011 10:30:25 AM
It’s time to wake up and smell the coffee! That’s exactly what Jammin Java (OTC: JAMN.OB), a heavily promotedcoffee company, and – for very different reasons – TheStreetSweeper would like investors to do.
Since the beginning of the year, JAMN has miraculously risen from the ashes of the “Grey Market” graveyard to become one of the liveliest – and richest – stocks in the entire microcap arena. JAMN has seen its stock shoot straight toward heaven, soaring from 55 cents to peak above $6 a share on massive daily volume, with its market value nowtopping $355 million despite the company’s limited resources and operating history. (As covered in more detail below, two of the Internet tout sheets pushing JAMN the hardest effectively vanished -- disabled by their Internet servers -- on the day the stock’s trading volume exploded past 20 million shares.)
CCME: Few Signs of Life at 'Healthy' Chinese Firm
by Roddy Boyd, 3/23/2011 9:30:34 AM
Also, and this cannot be understated, hanging out on a sidewalk in Fujian–the sidewalks double as parking spots when the streets, which appeared to have been designed in the Han Dynasty, fill up–was not a viable option. There was also the matter of the world-class headache the Financial Investigator was developing from Fuzhou’s diabolical smell, an epic conflation of poor sewage treatment, air pollution and the smell of cabbage that made getting the hell off Dongjie street a matter of vital importance.
The Financial Investigator and his traveling companion for the trip, an American investor with extensive experience in China, decided to head upstairs despite our interview with the CFO having been cancelled at the last minute (with no explanation given.) We thought a quick tour of the offices and meeting a few other executives might open our eyes to a few things.
Though the language barrier was a little steep with the young receptionist–when we asked for writing paper, she provided Kleenex–we were in short order shown to their conference room and told to wait. It did not escape notice that pride of place in the conference room belonged to a framed certificate of participation from the Fall 2010 Rodman & Renshaw conference, the World Cup for reverse merger companies and the pumpers and touts who peddle them.
Eventually chief operating officer James Yu came down and after spending 30 minutes trying to understand who we were, concluded that giving us a tour wouldn’t hurt. Soon enough, his colleague, Vinne Ye–the chairman’s assistant–came out and took us around.
It was most eye-opening.more...
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