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Be Careful What You Wish For, Abeona (ABEO)

If social media posts are to be believed, the management team at Abeona (ABEO) along with their thuggish lawyers and consultants made a very foolish decision last week. With a whole lot of downtime thanks to the Coronacraziness, the team at BuyersStrike! HQ will now be enjoying the vast majority of our distancing/isolation time devoted to uncovering everything at Abeona, its predecessor companies, its management team, its directors, its team of outside thugs, and its founders. What was before merely an offhand fancy has now become our focus. When dreams made real become less sweet, indeed!

Let’s start with a little essential reading on some of the crew who put the company together.

From The Wall Street Journal.

eight of the 31 companies that are recommended on the site say they have paid Bridge Technology Group, the closely held parent company of SmallCaps Online, for investor relations and investment-banking services. The eight companies have issued press releases listing Bridge Technology or StartUp Solutions, a name previously used by Bridge, as a “contact” for investors who want additional information.

Bridge Technology Group and SmallCaps Online are both led by Mr. Rouhandeh and both operate out of the same Manhattan office building. (Bridge Technology Group isn’t related to Bridge Technology Inc., a publicly traded Garden Grove, Calif., Internet company.)

U.S. securities law requires companies that are paid to publicize securities to disclose their compensation arrangements, including the amount of compensation they receive. Indeed, regulators have brought cases against Web sites that have issued glowing research reports on companies without disclosing that they had been paid by those firms.

From The Street.com:

Galena Biopharma (GALE) CEO Mark Ahn was fired by the board of directors at a special meeting held Monday, according to a source close to the company.

Ahn’s forced exit from the troubled Galena follows an internal investigation by the board which scrutinized the company’s hiring of an investor relations firm to engage in a stock-promotions campaign.

More to come. Perhaps we’ll also start a crowdsourced list of discovery questions for Rouhandeh, Ahn, and the rest of the clowns over at Abeona.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Victory Lap Re-Up: What’s harder to find, the Pyrenees data set in an FGEN presentation, or Andorra on a map? (FGEN, AZN)

[The following notes on Fibrogen (FGEN) are from November 2019. Re-upping it for a tiny victory lap. The company has known for years that the data was bogus. – Editor]

Both Fibrogen (FGEN) and AstraZeneca (AZN) have replied to reporters (but not the investing public at large) recently in response to the recent posts (see here and here) where we examined the Roxadustat DD-CKD data.

AZN-CommentsFGEN-Comments

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Climbing the Pyrenees (FGEN,AZN, 4053JP)

Careful readers will note that in yesterday’s discussion of Roxadustat one of the big questions was what happened to the Pyrenees data and why didn’t FGEN disclose it?

This morning, AZN released the following statements, as paraphrased by Bloomberg:

1.

AZN-PyreneesPooledExcl

and

2.

AZN-PyreneesSubmitted

So “we agreed not to pool the data BUT we ARE going to submit it”? The Pyrenees, peaks so high, but valleys so low.

THE CONTENT CONTAINED IN THIS BLOG REPRESENTS ONLY THE OPINIONS OF THE AUTHOR. THE AUTHOR MAY HOLD EITHER LONG OR SHORT POSITIONS IN SECURITIES OF VARIOUS COMPANIES DISCUSSED IN THE BLOG. THIS COMMENTARY IN NO WAY CONSTITUTES INVESTMENT ADVICE, AND SHOULD NEVER BE RELIED ON IN MAKING AN INVESTMENT DECISION, EVER. THIS BLOG IS NOT A SOLICITATION OF BUSINESS: ALL INQUIRIES WILL BE IGNORED. THE CONTENT HEREIN IS INTENDED SOLELY FOR THE ENTERTAINMENT OF THE READER, AND THE AUTHOR.

Twitter Jail, Fuck You Jack (TWTR)

Some readers and followers on Twitter might have noticed the @buyersstrike account has been silent for the past three weeks. This is due to being placed in invisible Twitter Jail while Jack Dorsey’s squad of soyboys and cat ladies have been reviewing my appeal.

Well fuck you @jack. @buyersstrike can now be found at Gab.

The offending tweet?

OffendingTweet

Institutional Memory III – MLRE, NURC, AIME, XWC

As part of our ongoing Institutional Memory series, here is another great piece by Christopher Byron, originally appearing on Bloomberg in August 2000. Abe Salaman makes an appearance, as does Yiddy Bloom.

Millionaire.com Is No Blue-Blood Company: Christopher Byron
8/16/00 (New York)

(Commentary. Christopher Byron is a columnist for Bloomberg
News. The opinions expressed are his own.)

Weston, Connecticut, Aug. 16 (Bloomberg) — Everyone knows
it’s great to be a millionaire. But forget about Regis Philbin
for a minute and just think instead about how much greater your
life would be if you could celebrate your seven-digit financial
status by owning a magazine devoted exclusively to the greatness
of millionaire-dom itself.
Impossible? Well, a mere $5.26 million looks to be the
current going price for exactly that opportunity — to see your
name at the top of the masthead, as owner, editor, publisher, or
whatever you might want to call yourself, of what else but
Millionaire magazine.
Does that sound like a deal to you? Since Millionaire
magazine happens to be owned by a company calling itself
Millionaire.com, whose 8.76 million shares outstanding are
currently selling for 60 cents each on Nasdaq’s OTC Bulletin
Board market, the prize would appear to be within the grasp of
the lowliest wretch clinging to the bottom rung of the
millionaire ladder.
Think of it. A mere $5.26 million and you’ll not only get
100 percent ownership of a magazine that features Bo Derek on its
current cover and is speckled with ads for all the stuff
presumably to be found in your typical millionaire’s toy box, but
you’ll also get a functioning Web site bearing the name of
what else but Millionaire.com. There’s even an actual bona fide
auction “venue” in South Carolina in the deal. This is where
millionaires presumably can come from far and wide to auction off
the diamond encrusted Patek Philippe watches they no longer want.

`Get Me Ivana’

In short, you could be the person who fills the shoes left
empty by the departure of the late, great Malcolm Forbes, and
lift high the media world torch for rich folks seeking life’s
true meaning in a Streetrod golf cart with a tilt steering wheel
and a Kenwood CD/cassette stereo rig in the dash.
You could be the publishing world reincarnation of Robin
Leach. You’ll get to pick up the phone and say, “Get me Wayne
Huizenga …” or “Get me Ivana Trump …” and then get
yourself invited to lunch to discuss cover possibilities. You’ll
get to approve layouts, say witty things, hire a secretary named
Tiffany who doesn’t wear underpants. You’ll get to “take a
lunch,” schedule an “investigative piece” on Bohemian Grove,
talk about your friends at Allen & Co. You’ll get to claim to be
pals with Tina Brown. It’ll be champagne kisses and caviar dreams
24/7 (or was it the other way around?). Whatever. It’ll be great.
First, however, there are a few things you should know. As
is the case with many penny stocks, this one is connected to
people you most definitely won’t be wanting to put on the cover
of Millionaire magazine, and once you step in what these folks
leave behind them, you’ll never get the stink off your shoe.
We’re speaking in this case of one Abraham Salaman of
Philadelphia.

Yiddy Bloom’s Friend

If the name Abraham Salaman rings the faintest of bells
with you it is perhaps because of a story I did on the old goat
back in December of 1997 when the market was really beginning to
boil and penny stocks everywhere were making new highs.
For anyone too young to remember the infamous Magic Marker
Corp. stock swindle that shook Wall Street a quarter century ago,
Abe was one of the men behind it. Back in those days Abe headed a
Philadelphia brokerage company called Delphi Capital Corp. His
buddies included Harry Blumenfeld (a k a “Yiddy Bloom”), a top-
ranked money man for the mob in Miami, who in turn was a friend
and business associate of the Mafia’s ultimate Mister Moneybags
himself, Meyer Lansky.
With these resources, Abe helped to set up and run a price-
rigging conspiracy that eventually involved over 20 individuals
who artfully — and illegally — manipulated the price of Magic
Marker’s shares from $6.50 to $30 over a 10-month period
beginning in 1971.

Nolo Contendere

In time, the conspiracy collapsed and Abe wound up pleading
nolo contendere to a 31-count criminal indictment brought by
prosecutors for an organized crime strike force in Philadelphia.
He was charged with conspiracy, mail fraud and other related
charges. His nolo plea got him three years’ probation, a $5,000
fine and a three-year ban from involvement as a broker-dealer in
the securities industry.
Since then, of course, Abe has returned to the securities
business, and has been one way or another linked to a number of
penny stocks that have soared to nosebleed heights, then abruptly
crashed. He hasn’t been charged with anything, and is doubtless
as pure as new-fallen snow. Yet he just keeps turning up in these
curious deals.
There’s been an outfit called Neurocorp Ltd., which soared
from $1.13 to $20 in 1995-96 on plans to open a chain of memory
loss treatment centers. As soon as it hit $20, the stock keeled
over and collapsed, and is today selling for roughly $2.50 a
share. Abe was a big investor in the stock.

American Interactive Media

In addition to his investment in Neurocorp, there’s been his
involvement in American Interactive Media Inc., which yo-yo’d
between $1 and $10 throughout the mid-1990s on plans to “allow
consumers to access the Internet over their television sets.”
Shares in the New York based company have since collapsed and are
now selling for 14 cents apiece. The company was founded by Mr.
Salaman’s son, Michael, and Abe himself hired a Florida stock
promoter to pump up the shares.
There’s likewise been World Wireless Communications Inc.,
which rose from $2 to $12 in 1997 on a telecommunications story,
then crashed and is now selling for $3. Abe held a big chunk of
that one too, as he did with others that erupted out of nowhere,
spurted into orbit, then crashed.
Now, it turns out, Abe was instrumental in putting together
Millionaire.com as a public company, helping to arrange for the
magazine, headed by one Robert White (the original creator of
Robb Report magazine), to be merged into an OTC Bulletin Board
company bearing the name Charter Investor Relations of North
America Inc. The deal was announced in December of 1998 and the
company’s stock soared almost instantly thereafter from $4 to
almost $26 per share. Then just as abruptly, it crashed, and 20
months later is now selling for 60 cents a share.

`Fully Reporting’

Abe and a man who has turned up in various other Salaman
deals — one Lynn Dixon — were investors in the deal … all of
which we may know thanks to the company’s filing of a so-called
10-SB form with the Securities and Exchange Commission last
December. Through the filing, Millionaire.com, based in Hilton
Head, South Carolina, is requesting to become a so-called “fully
reporting” company, which is to say, to avoid being thrown off
even the OTC Bulletin Board and get dumped into the so-called
“pink sheets” where the most dubious investments on all of Wall
Street are to be found.
But whether the SEC will grant them full-filing status is
not yet certain. Subsequent to the December filing,
Millionaire.com has filed three separate amendments to the
document, the most recent of which is dated July 20, suggesting
that the SEC keeps raising questions about what it is being told
by the company.

SEC Investigation

There’s good reason to do so, too, since even a casual
canter through the latest document reveals activities about which
investors in these shares might want to know more. It turns out,
for example, that Millionaire.com is currently the focus of an
SEC investigation. Company documents have been subpoenaed and
testimony from employees has been taken. Investors might want to
know what that’s all about, but the 10-SB filings give no further
details.
For what it is worth, my own hunch is that the SEC probe has
to do with the bizarre run-up — and equally sudden collapse —
in Millionaire.com’s shares between December of 1998 and March of
1999. At around that time, the Wall Street Journal reported that
Millionaire.com had been using the services of a Florida-based
stock promoter named Steven Samblis to handle its investor and
public relations, and noted that Mr. Samblis had earlier been
sued by the SEC for allegedly saying he was an independent stock-
picker when he was in fact getting paid by companies.
What the Journal did not report — doubtless because it
didn’t know of it — was an apparent link between Mr. Samblis and
our old friend Abe Salaman. The evidence? An autumn of 1997
newsletter published by Samblis that contained a glowing write-up
on Abe’s son’s company (the above-mentioned American Interactive
Media), suggesting that it could be “the next Microsoft.”
Thereafter, American Interactive began a rise that carried it
from around $3 to almost $9 a share, before crashing.

The Financial Numbers

As revealed in the 10-SB, Millionaire.com’s financials are
exactly what you’d expect from a company with a total market
value of barely $5.26 million. The company has $578,000 of cash,
roughly $600,000 of negative working capital, and no net worth at
all. In the year ended December 1999, it collected net revenue of
less than $3.4 million and 20 percent of it went straight into
the pockets of the top four men as cash compensation and bonuses.
In the process, the company racked up operating losses of $6.2
million as $3.8 million of operating cash flew out the window.
So it comes down to this: For $5.26 million you can become a
pint-sized Malcolm Forbes and run around celebrating the triumph
of seven-digit wealth. And for a whole lot less than that you can
piggyback aboard the efforts of Mr. Robert White and his
fascinating backers to do precisely the same thing. Just
remember, you’ll be buying into more than you’re ever likely to
read about in the pages of Millionaire magazine — a lot more.

 

 

 

 

Quick Take – Roddy Boyd on Blythe’s MLM “business” – BTH

MLM companies are often, and rightfully, considered a level below roll-ups in the hierarchy of junky companies here at BuyersStrike! HQ. Roddy Boyd recently wrote an excellent article on one such company, Blythe (BTH). Check it out here.

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.

Just what goes on at 6821 E. Thomas Road? (SEFE, ECTY, SPDL)

All the drama being created by commenter Charles reinvigorated us at BuyerssStrike! HQ.

At one time, prior to the now famous Boulder CO office, but after moving from its Indio, CA birthplace, Sefe Inc. (SEFE) gave as its address 6821 E. Thomas Rd, Scottsdale, AZ. 85251.

The most recent SEFE 10K states:

We use office space at 6821 East Thomas Road, Scottsdale, Arizona 85251.  A related party provides this space to us at no charge.

A quick search on Zillow shows that this an unimpressive single family home, purchased by someone in January 2007, the height of the real estate bubble, for $575,000

This purchaser must be the related party, but who is it?

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Quick Take – Vacation Over!

Vacation time at Buyersstrike! HQ has ended. We will now return to our normally scheduled programming.

To tide you over, check out this excellent piece by Doug Kass on short-selling, and the stupidity of politicians trying to ban the only effective market-based mechanism for rooting out fraud, corruption, greed, incompetence, and speculative excess.

Mega-Moron Update – Still not a ‘Sell’ (YUII)

The afternoon of the 16th Joe Giamichael of Chinese reverse-merger powerhouse Global Hunter Securities, the one-time home of Ping Luo, decided to “Suspend Coverage” of Yuhe International (YUII). Just a day before, in the face of overwhelming evidence, Giamichael reiterated his Buy rating and $16.00 price target. Read about yesterday’s hilarious note here.

Here’s what the GH brain trust had to say in today’s note:

Following the recent allegations and the formal response from management we were finally able to speak with Mr. Zheng to get his first-hand commentary regarding Yuhe’s public response to the allegations from GeoInvesting and the subsequent recorded conversation; in which, Mr. Zheng supposedly reiterated that the transaction never occurred and that the documentation that has been provided is false. Having contacted Mr. Zheng using the contact information provided in the SAIC documents, published by GeoInvesting.com, he confirmed to us what was previously stated in the GeoInvesting article.

But, GH didn’t tell its marks customers to sell, oh no, Joey G. did not even move his rating down to Hold. He just ‘suspended‘ it. Sadly, trading was not suspended YUII closed the day under $2. Global Hunter‘s long suffering marks customers lost 51.96% in just one day.

The content contained in this blog represents only the opinions of the author. The author may hold either long or short positions in securities of various companies discussed in the blog. This commentary in no way constitutes investment advice, and should never be relied on in making an investment decision, ever. This blog is not a solicitation of business: all inquiries will be ignored. The content herein is intended solely for the entertainment of the reader, and the author.