To All,
The Stock Detective has published the following article:
UP IN SMOKE
Corgenix Medical Corporation (OTC BB: COGX) looks like a pump 'n dump getting primed, if there ever was one. Within the past month or so, COGX - which manufactures health diagnostic kits - has been hyped online by StockPlayer, which was paid $200,000 by Gulf Atlantic Publishing for the plug. Gulf Atlantic Publishing, savvy hype-detectives may know, is the parent company of MoneyWorld, a Florida-based stock promotion machine, that provides both hard copy and a website money-world.net to its subscribers. According to documents filed with the SEC, Corporate Relations Group, an "affiliate" of Gulf Atlantic Publishing received $75,000 for a one-year "corporate relations" (read stock promotion) contract. Also as part of that agreement, according to the SEC documents, Gulf Atlantic Publishing bought 950,000 shares of COGX stock for $50,000, or $0.19 per share. COGX shares were trading around $1.25 on Sept. 3. This also makes Gulf Atlantic COGX's second largest shareholder, with almost 8 percent of the company's 12 million shares outstanding. However, you'd never know this by reading about COGX in the August issue of MoneyWorld - where it shamelessly refers to COGX as a "Medical Microsoft" - since the disclaimer simply states that the magazine was paid in cash for the promotion.
Now, as if this wasn't enough to caution investors, claims in the company's press releases and the projections in the promotional material should also put on the brakes. For the past two years, COGX has had flat sales of about $2.4 million and appears to be on a similar track for 1998. But MoneyWorld, which has a huge financial stake in the company's stock rising, predicts COGX will have net income of more than $14 million on sales of more than $80 million by the end of 2001, assuming planned acquisitions. COGX lost $754,135 and $633,202 in 1997 and 1996 respectively. Some of these optimistic figures may be based on products the company hasn't even developed yet, and others that have not yet won government approval. COGX itself has put out misleading and inaccurate information. An Aug. 26 press release, announcing an agreement for COGX to distribute a product that can detect blood clots, states "Thrombosis (blood clots) is the leading cause of death and illness in the world." Not according the World Health Organization, which cites infectious and parasitic diseases as the leading cause of death. END
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I have copied and pasted this so that those on this thread can add it to their DD. As for myself...? I still think that there is a possibility that this company will do much of what they are projecting but I haven't completed all of my DD yet. I believe as we all find things, (good or bad), about companies we share an interest in it will help each of us make a decision that we are comfortable with.
The above article has not swayed me one way or the other because all OTC BB companies need promoters to help them get started. My only concern is whether or not there is truth in what they are printing. I read all I can and then make my own decision as everyone else should do. Good Luck to all!!
Tom B. |
