jperry: The points you make are all very valid, if we were talking about the normal management of a normal company. Of course, managements regularly sell their stock. Of course, a large acquisition for a small company can take a while for the accountants to figure out, and could well lead to a delay in filing the 10-K. Ordinarily these things would have little meaning.
But DHMG is not a normal company. It is a scam from start to finish. The company does almost no real business--the overwhelming majority of its "sales" were not to real customers, but to insiders or private companies controlled or closely connected to insiders. (They almost never paid cash for their "purchases" from DHMG, just worthless shares of private companies or DHMG's own stock.) Subtract out the profits DHMG manufactured out of thin air by these rigged transactions and you have less than nothing left.
By rights the stock should have been selling pretty close to zero all along, but through lies, fraudulent statements, promotion, and getting in bed with crooked pump-n-dump brokerage firms, DHMG got its stock to a market value of well north of $50,000,000 which allowed the insiders to extract millions from the public, for a business that, in reality, makes no money and is worth virtually nothing.
Hagen is no normal CEO. He is a convicted felon with a long arrest record. I wouldn't hold that against him if he were honest here, but DHMG is just a continuation of his life work, not "going straight". What is particularly humorous about his selling the stock now is that for the last two years, until recently when the forces of justice started closing in on him, he was sending out shareholder letters sometimes as often as once a week, attacking those selling the stock short, stating that they were part of an evil conspiracy, when in fact he knew all along that it was the other way around.
More to the point, he regularly attacked any of his own shareholders who sold their stock, saying that by selling they were just playing into the hands of "shorty", and helping the forces of evil. That doesn't apply apparently when it is him selling.
Also, managements are not allowed to sell when they are in possession of material inside information that would have an impact on the stock. Every share that Hagen and his buddies have sold in the last two years was done under those conditions. The inside information? That all the books were cooked.
The most I ever saw him sell at one time was 30,000 that I recall, and that was after he had pumped the stock up quite a bit. To register such a large amount now (and judging by the price action, he may well have started dumping), at the same time that the SEC appears on the edge of closing trading in the stock and bringing formal charges (and, I hope, referring it to prosecuters for criminal charges) is significant.
My opinions on DHMG do not have a negative spin, they have a reality spin. I wish more people would take up my hobby and look into so called companies like this one. |
