Boingo Wireless: Why This Stock Will Soon Swoon
by Sonya Colberg, Senior Editor, 10/8/2015 10:09:24 AM
Boingo Wireless (NasdaqGS: WIFI) is all dressed up for the ball, jitterbugging in white loafers while the competition coolly waltzes away with the belle of the ball.
Try as it might, the Wi-Fi hot spot provider has been slightly out of step since its founding in 2001.
Indeed, Boingo has racked up ~$63 million in losses and faces these investment risks:
Shelf Registration: Boingo recently cleared the way so it can sell millions of shares, posing looming dilution of current stockholders’ shares.
Insider Selling: Executives are selling company stock like mad. The chief executive and chief financial officer alone have unloaded about 150,000 shares in the last four months.
Accelerating Risk: Free mobile Wi-Fi offered by airports, coffee shops, hotels and telecom companies pose an ever-growing risk to Boingo’s business.
Nothing Special: Boingo depends on open-source software and unlicensed spectrum to provide Wi-Fi – both available to everyone.
Terrible Finances: Shareholders’ 2014 losses of $0.55 per share are expected to worsen to $0.77 per share this year.
Institutional Disdain: Top institutional firms ignore Boingo, as even insignificant institutions are selling out their Boingo positions.
Cushy Compensation: Despite investors’ horrible returns, Boingo executives hit multi-million dollar jackpots.
Excessive Complaints: Boingo suffers from extensive customer complaints reported on consumer complaints website
Boingo declined TheStreetSweeper’s request for comment, but investors may find other viewpoints here.
Meanwhile, let’s look at the reasons we’re convinced overvalued Boingo is poised to dance away current stockholders’ hard-earned money.
Many upset customers have logged complaints about Boingo on consumer complaints website complaintsboard.com, here. A few highlights:
** “When it comes to Boingo, it's way way worse than "accidental" charging.
I paid for their one-day pass, out of desperation since I usually don't give out my credit card details online, one year ago.
ONE YEAR AGO. Since then, I have clicked "Cancel" and closed down the GoBoingo! pop-up whenever it shows up. Since there was no setting for disabling the pop-ups (fishy fishy!), and since I had no intention of using the service ever again save for emergency, I went into my computer settings and made sure Boingo wouldn't automatically start up.
So you can imagine my surprise when, going over my account bills for the past three months - this would be about 10 months after originally using the Boingo "service" - I see four separate charges from Boingo Wireless.”
** “I have just discovered that I have been charged $9.95 on my credit card for 3 YEARS.
ONCE I used Boingo in an airport in Houston, TX. I had to think very hard to even remember this. I have been charged every month since that time.
When I called Boingo to discuss, they acted as if this was the first time they'd ever heard of such a ridiculous thing happening.”
**”Boingo is deceptive and makes fraudulent charges. Boingo deliberately conceals aspects of the "As you Go" $7.95 24-hr. access charge for web connection at U.S. hotspots.”
** “After signing up to use boingo wireless for one day at an airport, I continued to incur charges of $7.95 on my credit card bill. They claimed that I continued to use their service, which was false. This appears to be a common complaint. No one should use boingo wireless. Hopefully boingo.com will be held accountable.”
**” … they did the same thing to me and refused to refund the extra charges. I live in FL, but "Bogus" Boingo Wireless is based in South Santa Monica, California. I wrote the attorney general there and asked him to investigate Boingo business practices. I've also filed a complaint with the FL state attorney and the CA Better Business Bureau. That's not all, I am on a mission. I bought www.ihateboingo.com I am currently working on the website. Boingo needs to be exposed, they are conducting the same business practices that Blockbuster had attempted and looked where it took Blockbuster.”
Boingo’s business primarily revolves around “DAS.” DAS or Distributed Antenna System is an antenna network installed in convention centers, office buildings, etc. to access the wireless network at peak times. Competing venue-based options include small cells.
AT&T and Verizon are the DAS giants. AT&T annually installs hundreds of its systems in stadiums such as the Dallas Cowboys stadium, campuses, airports and other venues across the country.
Verizon used its own DAS recently at the Daytona International Speedway, as well as various football stadiums.
Here’s how CEO David Hagan described the way Boingo works in the DAS segment – a lengthy process he said is usually a 12-month cycle:
Anavex Life Sciences: Biotech Pump Goes On And On And ...
by Sonya Colberg, Senior Editor, 10/6/2015 9:58:48 AM
If we didn’t know better, we’d think Anavex Life Sciences Corp. (OTC: AVXL) enthusiasts had ripped off a “Saturday Night Live” sketch featuring pump-you-up guys Hans and Franz.
Picking up three patents and one patent application, Anavex conducted a reverse merger in 2007 and switched from a digital-to-photo-print business targeting corner stores into a biotech company targeting Alzheimer’s.
Today, the company has no commercial product, hasn’t earned a penny since inception and does “not anticipate earning any revenues” until it can convince some other company to come aboard.
The company has lost $61.8 million over about 12 years of operations and is living on the ragged edge of survival.
And don’t let the stock price fool you. Though it sports an astonishing $230 million-plus market valuation, this stock is worth a fraction of today’s price.
The company has not responded to TheStreetSweeper’s request for comment but investors may find other viewpoints here. We’re just scratching the surface with this first look at a batch of highly promotional biotech stocks poised to dive.
*”We’re Here to Pump (clap) You Up!”
The 25 top biotech giants such as Johnson & Johnson and Novartis and Eli Lilly do not rely on hype to push their stock.
But Anavex has everyone from the CEO to pump sites to message board fans clapping their hands and cheering on Anavex with, “We’re here to pump you up!”
The chief executive officer, Christopher Missling, had this to say in a recent interview:
“Anavex has now a team of big pharma and biotech experts, doubled the number of Scientific Advisors which is mostly Medical Doctors, raised a company's record amount of $10M in one funding transaction, advanced after that quickly into Phase 2a, licensed additional promising compounds into the company. Anavex is significantly more advanced than in 2007.”
Yet Anavex filings say it operates with just “four (4) full-time employees, and we retain several independent contractors on an as-needed basis.” (Don’t miss the section below titled “Executive Compensation” to put employee compensation into perspective.)
Other concerning promotional efforts include:
The CEO sounds highly promotional - talking about reversing the disease and stopping the disease today (despite having its experimental drug just barely in the human testing stage involving dose toleration of just 32 subjects) - in this one video of four Anavex videos on Wide World of Stocks. WWOS is a site Timothy Sykes connected with Viral Genetics and one that also discloses that its employees sometimes receive investments in companies it features.This series just begged for a dose of the brash objectivity of SNL character Roseanne Roseannadanna.
B. Additional promotion on Stock News Now, here, a rather well-known microchip promotional site.
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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