TO EVERYONE: Re: TAVA - my fraud detectors have now kicked in.
Most who follow this thread know that I am particularly interested in companies that may be engaged in a scam, are fraudulently promoting their stock, or both. Fraudulent stock promotion means that management will resort to the use of ambiguous or misleading press releases, post hype on the internet, or pass misleading "teaser" information to investors and analysts which then leads to rampant speculation. For excellent examples of this type of stock promotion, study ZITL and CCSI. Another BIG red flag is when companies publicly denounce short-sellers and proclaim that they have the little investor's best interest at heart, usually - and ironically - a brief time before they collapse. Check out the press releases KRY, ERGB and CCSI issued immediately after Manuel Asensio (NY hedge fund manager and aggressive short-seller) published reports outlining details of their respective frauds.
When I added TAVA in the DOOM INDEX today, I pointed out that the company's financial condition was precarious, and I found it odd that a company with a market capitalization approaching a quarter of a billion dollars would need to float a floorless convertible for $6 million. I was trying to demonstrate the incongruity of the lender holding his nose and converting stock as fast as he could, and the small investor who is paying an enormous price for an enterprise with a pathetic track record.
One of my favorite pet indicators is the "insult index". In other words, if investors posting on internet chat forums start berating me for daring to short the stock - without offering any rational justification for buying/holding the stock. I found that I was a very lonely contrary voice on the TAVA thread. Some called my opinions "childish" and "worthless", and I got lots of "dare you to short more" talk. A great sign to say the least!! :^D
Along the lines of the "insult index", I like to see angry email. However, I was surprised to receive my first hate mail only about an hour or two after I put TAVA on the index. I responded to the mail, pointing out TAVA's unusual financing, and lo and behold - a few hours later I get a response from TAVA's investor relations!!!!
The reason I mentioned that my "fraud detectors" have now kicked in is because this email exchange suggests that TAVA investor relations may be a little...ahhh...overenthusiastic and perhaps a bit paranoid. I'll leave it up to the reader to decide.
In the next few posts, I will first post a copy of the original email sent to me (ostensibly from a private investor in TAVA), I will post my reply, next I will post the reply-back with the comments from TAVA investor relations and finally, my comments regarding the investor relations communique.
Enjoy! |
