Realm Therapeutics is being acquired by ESSA Pharma. The bid is unattractive and in illiquid stock. Major shareholders and the board have a clear conflict of interest, so it’s up to us, the minority shareholders to block this vote. Vote your shares! Read more.
Thanks to an ongoing stock promotion Eco Science Solutions is up 700% over the last 12 months. Today, however, 14 million newly issued shares have become available for trading. The person holding those shares has previously been CEO of Eventure, another publicly traded company, whose share price was run straight into the ground in 2014. I believe ESSI stock will suffer the same fate. Read more.
Cannabis Sativa is up 800% to year, in anticipation of November’s marijuana vote in nine US states. However, the company is basically a tiny webshop with very little assets and very little to gain by legalization. The main purpose of Cannabis Sativa appears to be for insiders to dump stock. When the hype dies down, expect shares of CBDS to sell off. Read more.
Last Friday John McAfee’s MGT filed its long awaited proxy statement. The statement shows recent acquisitions generate hardly any turnover and existing MGT shareholders face extensive dilution. While the bear case suggests MGT is nothing more a scheme to print shares, even the bull case suggest an hefty overvaluation. Read more.
Shares in troubled Paragon Shipping spiked 500%, even though the company had to sell off all its assets to pay down debt and has very little cash left. Even Paragon’s own CEO believes the liquidation value is negative. A peculiar conversion arrangement between notes and shares might explain the run-up, and predicts when the shares will fall. Read more.
EBIO’s main drug has failed two Phase 3 trials in a row. Its share price rose spectacularly on speculation the drug might have some effect after all. EBIO has now confirmed it will not further develop the drug. With dwindling case and no immediate pipeline, the share price could drop over 70%. Read more.
DARA is about to be acquired by UK-listed Midatech Pharma. At the current share price DARA trades at a 16% discount to Midatech’s offer, likely due to a lack of shareholders interest. Its shareholders will vote on this deal on Wednesday making it an attractive short term play. Read more.
KBIO’s share price went from $ 0.20 to $ 18.25 after Martin Shkreli bought a majority stake. Shkreli is in it for a drug called Lenzilumab, which is yet to prove its effectiveness. KBIO shares seem expensive and are essentially a bet on Shkreli himself. Yet there are better biotech-shorts out there. Read more.
EURI has seen unusual high trading activity as a result of a big stock promotion this month. However, the company hardly generates any revenue despite a market cap of 130M. Millions of shares issued at almost zero are waiting to be sold in the open market. Read more.
Ten OTC-listed stocks appear independent, but are run by a small group of insiders. These insiders net millions on convertible debt conversion at the expense of shareholders. ASCC, CHGT, FTTN, GTSO, MYGG, NTRR, OMVS, RBCC, SGNI and TAYO are all worth zero. Read more.