First, I am not an insider. I have followed the company since its inception and have spoken with many of the principals over time.
Second, John Bennett would be the first to tell you that the BHUB strategy is a great one and the this was the kind of situation the original management wanted to see develop - a larger scale portal, shopping and proprietary product site.
Finally, as to the PP, these things are NEVER simply open to the public. Most often they are sold directly by a broker/investment banking firm to their well-heeled clients. No matter what the situation, you couldn't get a piece of it. How could they even begin to qualify you as an appropriate investor. By the way, that is one reason the original management turned down the dozens of "investors" who came out of the woodwork over the past few months begging for an opportunity to invest money in iSleuth via some sort of private placement.
By the way, what should the SEC investigate? Here's my list of the only abuses that have transpired:
1. Someone (or several someones) who signed a confidentiality agreement(s) leaked the Private Placement Memorandum to both the media and to short selling traders and market makers - a violation of rules regarding inside information and a breach of the agreement they signed.
2. Some traders acted on that inside information, driving down the stock price - another violation of inside information trading rules.
3. Some people spread that information here on SI and on Raging Bull and other places, another violation of SEC rules.
4. There was a curious timing between the articles that came out on MSNBC and Bloomberg and the comments made by some here on SI and on Raging Bull - with strong hints of many of the things written in the articles. And anyone who acts on information that is about to be published by the media is also in violation of SEC rules. (Just like that case years ago when the guys at the printing plant that printed Business Week were in cahoots with brokers who would trade on stocks written up in an upcoming issue before the issue left the printing plant and was distributed to the public.)
Oh, and before I forget, how can you call the terms of the PPM borderline fraudulent, or in fact characterize them at all. Perhaps you too have seen the PPM and have broken the law? Or is it just that you too have given into innuendo, falsehoods and stupidity?
Give it a rest. |
