BioSig Technologies (BSGM) Shenanigans, Stock Promotions, Regurgitated News
by Sonya Colberg, Senior Editor, 1/20/2017 9:55:27 AM
Since inception eight years ago, BioSig Technologies (BSGM) has gone nowhere fast ... unless you count issuing stock, regurgitated news and stock promotions as achievements.
BioSig is a non-revenue, cash-gobbling Minneapolis, Minnesota company focused on a non-FDA-approved product. The PURE EP System is designed to display data during an electrocardiogram or EKG.
As the market completely misses the huge red flags snapping at BioSig, the stock has darted upward by ~18% in a month. Now this dangerous stock has reached a level that we believe leaves only downside ahead.
TheStreetSweeper presents the top risks that challenge a BioSig investment:
*1. Promote, Promote, Promote
Yesterday morning, many folks' inboxes were treated to this Bio Sig come-on:
The next BioSig promo surge came just a couple of hours later:
Here's more hype that landed in the morning's email:
And another one:
These emails are paid promotions. Just the kind of thing you'd never see trumpeting a stable company with viable products.
Magellan Petroleum (MPET): $3 Billion Valuation? Indefensible!
by Sonya Colberg, Senior Editor, 1/18/2017 12:12:26 PM
Magellan Petroleum (MPET) stock has rocketed into treacherous territory as the market misunderstands the extreme risks ready to slam the shares.
The Denver, Colorado company has abandoned the oil business amid plans to reverse merge with Tellurian Investments and eventually build a liquefied natural gas terminal.
But TheStreetSweeper warns investors that Magellan is one of the most overvalued stocks we’ve ever seen. The ~$15.6 billion construction costs, $168 million lawsuit, misunderstood major investment, uncertain LNG demand, fierce competition, 5-year construction schedule – plus the current technical RSI indicator - all multiply the risk exponentially.
Investors may find other viewpoints here. Meanwhile, TheStreetSweeper shares the eight top risks expected to annihilate this stock:
*1. Grudge Company: No Revenues
Investors seem excited right now about the planned reverse take-over of private company Tellurian Investments into Magellan.
Tellurian is the grudge company created by Charif Souki shortly after Cheniere Energy kicked the former chief executive out the door in late 2015. Mr. Souki wants the merged company to build a multi-billion-dollar natural gas liquefaction plant in Louisiana.
Unfortunately, the combined revenue of Magellan and Tellurian over nine months just barely eclipsed what a fast-food employee makes - $31,000:
(Source: Company SEC filing)
Ironically, the measly revenue came from Parallax Enterprises, which has been sued by Mr. Souki's former company. Cheniere had loaned Parallax money as the two made plans for a liquefaction plant joint venture. Cheniere sued, according to the complaint, when Parallax (wholly owned by Martin Houston, expected to become the newly merged company's executive vice chairman, alongside Charif Souki, chairman) didn't cough up payments.
Meanwhile, there has been substantial doubt about Magellan's ability to continue operating. Company filings say Tellurian is in bad shape, too.
"Because Tellurian’s assets do not currently generate revenues, the combined company is also likely to experience liquidity constraints."
*2. Magellan Stockholders' Ownership Decline
Under terms of the merger awaiting shareholder approval in February, each share of Tellurian will be converted into 1.3 shares of MPET.
Former Tellurian investors will walk away with almost the entire company ... about 96%.
Magellan stockholders will find themselves on the wrong side of this deal. They will be left with just a sliver of the company ... just over 3%.
*3. Unjustifiable After-Merger Valuation
As it turns company control over to Tellurian shareholders, the merger will dramatically increase Magellan's current outstanding share count of 5.88 million. At the current lofty share price, Magellan winds up with an unconscionable market valuation:
(Source: Company SEC filing, TheStreetSweeper assuming post-merger estimates)
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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