>>that's no reason not to listen when he speaks of things he obviously knows quite a lot about. <<
I not only listen, I follow up.
He had some great posts about market mechanics, and I have saved them for future reference. He clearly knows the business, and must be an insider.
Now, about DGIV, when he posted his questions, I took them very seriously and issued a public challenge to the company for answers. I also spoke with company officials. I got answers, some good some not so good. About what I expected from a non-reporting company that has grown faster than they could keep up with, under a lot of pressure from impatient investors. The bottom line is that I remain invested in DGIV, which I still consider a high payoff but high risk investment.
But I also found something else. I found that A10 had made some critical mistakes in his claims, and that his credibility was undermined. What is sad is that I personally know some people who sold because of what A10 said, took a great loss, then watched as the stock came back up again. There you have the result of an alleged professional Wall Street analyst who comes on to a penny stock claiming that DGIV is a scam without giving any proof as to who he is or even a profile. Sad...
I no longer share my DD on this thread because it is used against us by bashers. But let me tell you just some of the things that he said publically that turned out to be BS.
Friday I know of someone who bought 150k shares of DGIV, and the share price increased substantially. A10 discounted this, claiming that the reason for the high volume was a single trade for 168,500 shares at 3:09PM. I listened to him, and assumed that this was part of the 150k from this investor. I found out that was wrong, that the 150k was spread out over all afternoon, and that there was no trade for 168k. When I confronted him with this, he would not answer, and when he finally did respond he told us we don't even know how to read a terminal. Well, we got the time and trade out, and it was not there. We kept doing DD and found out there had been a cancelled trade for 168k which, as you know, does not in any way affect share price. So he lied to us.
Let me tell you another one. He made a big deal about the lack of safe harbor statements on DGIV news releases. Now, safe harbor statements only apply to future projections, not about done deals, but let's not worry about that. What bothered me is that he had gone through every DGIV news release and knew their contents intimately. At the bottom of most of those early releases is the name of Libery Capital, which had been their PR firm. When I asked him his opinion about Liberty Capital, he told me he had never heard of them. When I pressed him on it, he then changed his story to one that he had not finished his research, and was still looking into them. He finally called them unethical, and Liberty Capital essentially threatened him with a lawsuit. Now, does this seem like honest behavior?
Another one. He complained that DGIV was a news mill. Then he claimed that DGIV never received a 1M dollar payment due on 30 June, and complained that they did not issue a news release about that. You can't have it both ways, either you want news or you don't. Besides, as has been pointed out, no company -- reporting or otherwise -- is expected to issue a news release about any particular payment due them. Oh, I did find out about that payment, and I am satisfied. But as I said, I am not sharing my DD.
So, do I listen to A10? You bet. I follow up, and I am still here, holding long.
P.S. Rocket scientist is just a popular term, that does not exist in reality. I mean, you don't get a PhD in rocket science. I am an aerospace analyst, and have been involved in aerospace my entire adult life, since around Apollo 11. But when I said I was a rocket scientist, I meant it in the same way that a therapist, for example, might say they are a shrink. It is just a popular term. Also, rocket science is no more difficult to me than art history is to you. I suspect I would have a hard time with art history, as that is not my forte. |
