Don't Believe the Hype
By Seth Jayson (TMF Bent)
January 28, 2005
Lately, I've been absolutely appalled by the continuing ignorance of speculators -- I can't even call them investors -- who are willing to put their chips down on anything promising to be the next Taser International (Nasdaq: TASR). Let me get this out first. Taser's got problems that extend far beyond its ultra-pricey valuation, but what Taser does have are products and a reputation.
The stun gun wannabes? They have press releases. I mentioned this earlier in the week. I took a hard look at Stinger Systems' (Pink Sheets: STIY) CEO, a guy who's run several companies straight into the ground. Who needs profits when you've got snazzy deals?
Investors do. But with these guys, there's little guarantee that they'll get anything more than an empty bag.
So, because there can never be enough light or disinfectant poured onto the world's creeping slime, let's take a brief and critical look at the latest bit of self-promotion from Law Enforcement Associates (OTCBB: LENF) Their motto? "We've got video!"
Hey, that's just super, guys. How about letting us know when you've got sales?
Don't hold your breath. If you haven't seen the LEA stun gun, it looks like a cigar box glued to a handgun stock. Does it work? You bet! Just ask them! A previous press release touts the great superiority of the firm's engineering prototype. That's penny-stock speak for "we don't actually have a product yet." But just wait! They will! How many bucks are you willing to gamble on this pig in a poke? You think cops are going to want to carry this clumsy, unproven device?
There are even better reasons to run from this stock as quickly as you can. The New York Post's Christopher Byron has documented the tangled web of shells and stock promoters who've come together to hype this company, and though you should, you don't even need to read his work to get a whiff of the rot.
A couple of days ago, LEA management released a sorry victimization screed. (Curse that intrepid Mr. Byron and his stubborn facts!)
In it, LEA proves that its management is not only dishonest, it's not very smart. Consider this claim, "...the Company is not involved with any stock promoters."
This statement is a bald-faced lie, and it takes only 30 seconds to confirm it. LEA's latest press release proudly notes that it is a "featured stock" at homelanddefensestocks.com. A quick trip there verifies that this site is nothing but a paid shill for penny issues. Read the disclosure. LEA pays this site $4,000 a month for its precious position as a "featured stock." (You think these are the only people on the take for promoting LEA?)
Let me be clear. To these sharks, you are a mark. You are a sucker, a patsy. They want what's in your wallet, and that's the end of it. Consider yourselves thrice warned. You "invest" here, and you deserve what's coming to you. And what's coming to you is nothing. |
