Professional Diversity Network (IPDN): Offshore Investment Fund, Falling Revenue, Mad Customers
by Sonya Colberg, Senior Editor, 2/16/2017 8:23:50 AM
TheStreetSweeper issues a warning for investors of Professional Diversity Network (IPDN).
IPDN stock has gone Wild, Wild West following widely misunderstood investor announcements … including one regarding a Chinese investment group that we found lists its business address as a post office box on an island.
Now TheStreetSweeper believes this stock is positioned to get shot down to size.
Here's an executive summary:
*Whenever a company lists its address as a post office box on an island, as IPDN’s Chinese investor does, it’s a red flag … indeed it’s TheStreetSweeper’s skull and crossbones.
*Cheap $2 warrants for 246,445 shares of IPDN stock were set free on Feb. 14. The lender holding that stock may now sell any or all shares.
*If many of those cheap shares are sold, other investors holding more expensive stock face getting their share value watered down.
*Under Nasdaq delisting threat and eager to please a sell-happy lender, IPDN pulled a reverse stock split. Stock typically jumps initially before dropping back to pre-split levels or worse.
*Revenue is dropping, partners are walking away, customers are mad.
*Cash burn’s high, money’s tight and a dilutive stock offering or debt appears likely within a quarter or two.
Investors may find other viewpoints here and the IPDN website here. Meanwhile, let's examine five good reasons to dump this stock now:
*1. Warrants: Just Set Me Free.
IPDN has set up the paperwork so a stockholder, White Winston Select, can sell off the lion's share of its stock...Now.
White Winston loaned $5 million to the company in March 2016. In exchange, in one piece of the current dilution, the lender picked up some warrants for 246,445 shares of stock for just $2 apiece. Now the lender wants to unload some stock.
Wecast Network (WCST): Scooting Into Oblivion
by Sonya Colberg, Senior Editor, 2/15/2017 9:51:47 AM
After seven incantations over the decades, Wecast is now a mishmash of China-linked businesses, controlled by Chinese parties and overseen by a Chinese chairman toting 40% of the company’s common stock. Meanwhile, the company rips through millions of dollars, subtly pushing average stockholders closer to watching their shares get watered down in the future.
Formerly called You On Demand Holdings, the video-on-demand provider operates primarily in China. After numerous business changes, Wecast now hopes to develop a consumer management platform for businesses and consumers ... or maybe headsets ... or whatever idea strikes their fancy tomorrow.
Here is an executive summary:
*Controversial underwriter Chardan Capital Markets helped take this company public through a reverse merger into a shell company… a less than auspicious introduction to the public.
*The stock has surged on two silly announcements of merger agreements … with companies owned by none other than Wecast’s Chinese chairman. One bogus “merger” is really a loan deal and the other bogus “merger” is a freebie thrown in apparently because it’s worthless and easy to hype.
*The chairman’s companies off-loaded to Wecast include a third-tier Chinese publication. The other company sells scooters and furniture ... not our definition of a leading “global supply chain” manager.
*The chairman who controls the company is a Chinese entertainment guru who has helped grind his former company into the ground.
*Wecast's Valentine's Day announcement sounds like pure promotion designed to drive up the stock. Wecast wants investors to believe that it's really a tech company ... rather than a failed video provider that just bought a scooter company.
*Wecast is more a tiny scooter-and-furniture maker than a global supply chain manager or video-on-demand provider … or a headset maker. This company can't decide on or focus on a business.
* 1. Rat's Nest of Related Party Deals
The stock ran up following two mergers with companies owned by Wecast's chairman.
*Merger 1: Wecast announced the Feb. 1 completion of a merger with Sun Video Group to buy 51% of M.Y. Products. The company name was changed from You On Demand to Wecast Network Inc.
The hype: Sun says it will generate $15 million profit within 12 months of closing or return the shares.
The hitch: M.Y. Products is owned by Sun Video. Sun is owned by chairman Bruno Wu. This debt deal is off if Sun Video doesn't reach its target. If Sun Video were really able to reach $15 million profit in a year, no one would be able to buy it for a mere $50 million. The deal sounds fishy to us.
*Merger 2: Wecast on Feb. 2 acquires 55% of Wide Angle Group Limited.
The hype: Wide Angle is an industrial/trade media and commerce company. Wecast gets the Wide Angle shares from BT Capital Global Limited... which is owned by guess who? Chairman Bruno Wu and his Sun Seven Stars.
The cost: Nothing. "WCST will pay no additional monetary or stock consideration for the acquisition."
The hitch: Wecast's chairman threw in his company, Wide Angle, for free.
Why on earth would he do that? It could be that Wide Angle is worthless. It could be the chairman wants to promote the stock. Or maybe both.
*2. Who's Your Daddy And You Say He's Selling Scooters?
Let's look at the two companies, owned by the chairman, which are intricately bound to Wecast.
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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