Vuzix Corp. (VUZI): Let The Caterwauling Begin
by Sonya Colberg, Senior Editor, 5/25/2016 11:08:27 AM
Struggling Vuzix (VUZI) reported losing millions last quarter on revenue that dropped 55% from a year earlier. Yet stock in the video eyewear company quickly returned to absurdly lofty levels - - afloat on paid promotions and a lingering misunderstood story.
TheStreetSweeper believes the 26 cents per share losses might not look too bad compared to what may come next.
Investors may find other viewpoints here. Meanwhile, consider TheStreetSweeper's top eight reasons why all the screaming about this stock will likely soon turn into caterwauling:
*1. Hype: Paid Stock Promoters
Vuzix stock has fallen into the unfortunate hype-fest category. It has been promoted by at least 21 professional campaigns.
Paid promoter MicroCapResearch pushed out a lengthy Vuzix promotion just last week, on May 17. On Tuesday, May 24, various posts linked to the promo.
At the bottom of the long newsletter promotion, a disclosure shows some generous third party dished out big bucks to promote Vuzix:
Also, out of the goodness of its heart, Star Media paid $15,000 for another recent "investor awareness campaign" hyping Vuzix.
Paid stock promotions like these offer an excellent way to spot a desperate, often troubled company. Stable companies with real products and a real future don't need or want such stock promotions.
Indeed, some of the recent fluff picked up by investors came from the company itself ...
*2. Misunderstood: Hyped Announcement
MGT Capital: Heading Retail Investors To The Slaughterhouse
by Sonya Colberg, Senior Editor, 5/18/2016 9:52:44 AM
MGT Capital Investments (MGT) just may be the most self-promoted, worthless, risky stock we've ever observed.
Now, in our opinion, the company is poised to lead retail investors gently to slaughter.
You see, MGT stock is flying on tweets and Facebook page promotions from controversial wild man, John McAfee. The fallen icon will become the company's "proposed Executive Chairman and Chief Executive Officer," the company announced.
And MGT has bought Mr. McAfee's old anti-spy asset, D-vasive. Though the press release doesn't explain this, D-Vasive is a product of Mr. McAfee's Future Tense Secure Systems,, the company which will now be consulting for MGT. MGT paid $300,000 cash and millions of cheap-o shares for the questionable privilege of taking Mr. McAfee's languishing property and try to breathe commercial life into it.
Now Mr. McAfee is hyping his new company. And unwary stockholders are buying into tweeted comments that we believe are material - and deserving of Securities and Exchange Commission attention.
In a nutshell, it becomes clear who benefits from this deal:
*Mr. McAfee gets paid for something he already owns.
*The company pays for D-vasive, Mr. McAfee's anti-spy property that has been virtually ignored.
*Mr. McAfee gets a job.
*Newly issued shares increase value for Mr. McAfee.
*A low-value app gets some fleeting attention.
But this MGT combo is now perfectly priced for a tooth-rattling drop when investors realize the massive risk they're holding onto right now.
*Wild Man Becomes CEO
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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