To: antibash who wrote (11153 ) 11/10/1998 2:17:00 AM From: Dayuhan Read Replies (4) | Respond to of 26163
Try spending a day doing your own DD, then come back, if you have the balls, and tell us your findings. I spent a few hours doing preliminary DD on this company. These were my findings: 1. The company is close to a year late in filing its last 10K 2. The company projected earnings of $50M on revenues of $70M for 1998. I have found no evidence of any revenues at all, let alone earnings. 3. The company has announced, in the last year, that it was introducing a cream that could protect from AIDS, a revolutionary hair restorer, and an all-natural chewing gum. None of these products seems to be for sale anywhere, none has been independently reviewed, and no evidence for clinical efficacy has ever been cited. 4. The company's "world-famous biochemist" does not appear anywhere on the web except in connection with AZNT. No peer-reviewed publications, no scientific track record. 5. The company's lead product is an all-natural sweetener. The company's website lists a molecular formula for this sweetener. An independent organic chemist with an extensive record in pharmaceutical research says the formula on the site cannot possibly be that of a sweetener, would be highly flammable, and is probably poisonous. 6. The retail outlet that is supposed to be selling this sweetener has never heard of it. 7. The company's website sells remedies for practically every disease on earth. No FDA approval or evidence for clinical efficacy is cited for any of them. 8. The company claims to deal in precious stones and sculptures in semiprecious stone. No descriptions of source, quantity available, quality, or value, has ever been cited. That's just off the top of my head; if I dug into the notes I could probably come up with a few more. The bottom line is that it appears that the company is selling nothing, and that it may not have anything to sell. What line of business are they really in, aside from issuing shares and getting involved in lawsuits over their disposal? All of this quibble over legal actions is totally irrelevant. When it comes to investing, cash flow is king, and these guys just haven't got it. Bottom line: what kind of earnings per share are they showing? Do you know? Do you care? Seems to me that this is little more than a manipulated shell. And yes, I know that people do make money playing games with manipulated shares. In fact, this seems to be the whole pitch here - forget about the business, ride along on the "short squeeze". Unfortunately, I've learned the hard way - as have many others - that trying to ride on a manipulated stock is pretty risky, unless you're one of the manipulators. In this case, if you fail to catch the swing, what have you got? What honest valuation could you put on this company? Can you cite one good reason why someone would want to invest in this company? Steve PS If you're against bashing, as your psuedonym implies, what are you for? Hype, or honest discussion? If honest discussion, I hope you can find the time to honestly discuss the points above.