Melissa Davis, senior editor of The Street Sweeper, poses with celebrity stock picker Jim Cramer after a recent taping of his "Mad Money" television show. Davis worked as an investigative reporter for TheStreet.com, where Cramer serves as chairman, before assuming her current role at The Street Sweeper.
Confession Time: Miller Reveals That Its Stock Is Practically Worthless
by Melissa Davis, 9/19/2014 10:09:56 AM
Just wait until the U.S. Securities and Exchange Commission finds out about this news. After fielding so many questions from the SEC about the reported value of its assets, Miller might as well go ahead assume that regulators will probably notice some new disclosures that make the $230 million company – strapped for cash, with less than $4 million in the bank – look virtually worthless right now.
Don’t take our word for that jarring conclusion. Feel free to double-check our math. We relied on a simple formula – using numbers provided by Miller itself – to determine that the company is likely worth no more than a measly 45 cents a share.
Digital Ally: This Movie Has A Bad Ending
by Sonya Colberg, Senior Investigative Reporter, 9/16/2014 1:33:40 PM
Digital Ally (DGLY) stock has soared over 386 percent amid calls for cops to wear body cameras following the Ferguson, Mo. police officer shooting of an unarmed teenager. DGLY took advantage of an unbelievable run in the stock for a small raise, a heady but ridiculous action in light of how short DGLY falls below the industry leaders.
We’ve seen this movie before and we know there is absolutely no justification for the stock’s crazy run from about $3.80 in one astonishing month to today’s nearly $20.
Here are TheStreetSweeper’s top reasons we believe this DGLY movie will end badly:
- National interest is in police body cameras, not DGLY’s old technology.
The old dash cameras – DGLY’s key product – are not even part of the national conversation.
"The recent emergence of body-worn cameras has already had an impact on policing, and this impact will only increase as more agencies adopt this technology,'' said Chuck Wexler, executive director of the Police Executive Research Forum, author of a recent report on the use of police body cameras.
Yet, the in-car video recording system constitutes 90 percent of DGLY’s already falling revenue and rising operating losses of about $1 million.
- Old technology = falling revenue.
DGLY’s in-car video revenue will likely continue to erode due to superior, cheaper body cameras offered by well-known vendors such as stun-gun maker Taser International (TASR), a profitable company up 43 percent since Ferguson to $17 plus change.
CNBC’s Jim Cramer said police wearable video will likely become the new normal and that market is owned by Taser.
Wearable cameras provide superior video footage that provides up-close and point-of-view, non-tamper recording compared with in-car video.
Indeed, DGLY’s old technology is clearly already feeling the pressure. Describing the company’s decline in gross profit, its last quarterly filing said:
“However, we are experiencing increased price competition and pressure from certain of our competitors that has led to pricing discounts on larger contract opportunities. We expect that this pricing pressure will continue as our competitors attempt to regain market share and revive sales and that it will have some negative impact on our efforts to improve gross margins during 2014.”
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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