Bad Directors

Protocol Deviations And The One Site to Rule Them All – AMPE

Our post last week on Freezergate 14, “Every Picture…” has caused quite a stir. Today Ampion (AMPE)  has issued a “Letter To Shareholders” available here attempting to gloss over some of the Freezergate ’14 issues.

Don’t worry shareholders, these things happen all the time and the FDA is “very positive” as this particularly choice bit suggests:

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Quick Take – Bye Bye Mark Ahn (GALE)

As tweeted last night by The Street.com’s Adam Feuerstein, the smug Mark Ahn is out at dreadful Galena Biopharmaceutical (GALE). Read more here.

The sell-side analysts whoring themselves out for banking business, like Needham’s moronic Chad Messer (read about him here and here) will now have to dust off the pads and kneel before newly promoted GALE CEO Mark Schwartz.

For those playing at home, the case to watch (or better yet send in an FOIA request) is:

In the Matter of Galena Biopharma, SEC File No. HO 12356 now known as  “In the Matter of Certain Stock Promotions”

No wonder the GALE-eediots have been so silent recently.

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.

Quick Take – Nanoviricides (NNVC)

Two great reads about reverse merger bio-turd Nanoviricides (NNVC).

First, check out Duff McDonald’s piece in the NY Observer, available here.

Then read these emails between NNVC CEO Eugene Seymour and some poor sap he is promising a seat on the BoD.

Finally, scratch your head as you try to contemplate just how monumentally stupid the investors in NNVC must be. Congratulations Dr. Seymour you found a group of morons even dumber than the GALE-eediots.

 

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.

 

Does crime pay? (NCTW, SEFE, Kerrs, Quiels, etc…)

Ever wonder about the finances of penny stock pushers like Steve M. Kerr or Michael L. Quiel? Here’s your chance to satisfy that curiosity, thanks to the PSRs recently released in the USA v Kerr case.

First take a look at Steve Kerr’s, page 18 is pretty telling, looks like over 4mm in profits for 2007’s p&ds:

KerrPSR

And then learn all about Quiel, who looks like he has a net worth of about $15mm:

QuielPSR

They each made quite a pretty penny, cannot wait to see Humble Harold’s P&L!

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.

Another Court Decision Against Fuqi (FUQI)

Ready for some reading? In a 45 page option, Sam Glasscock of the Delaware Chancery Court slams Chinese reverse-merger scam Fuqi International (FUQI) and its Board of Directors. Some choice tidbits:

Plaintiff has pled facts with particularity that show that the Fuqi board has abdicated its responsibilities because the investigation has been left in limbo, with no progress, for several months. Under that view of the facts, Fuqi management is not entitled to the business judgment rule’s protections. Beyond that, Fuqi management has refused to pay for the professional  advisors—including auditors and legal counsel—of the Audit Committee performing the investigation. This lack of payment has thwarted what efforts could have been taken by the Audit Committee to investigate. To make matters worse, the independent directors, who could have conducted a meaningful investigation on behalf of the company, have resigned from their posts. Thus, the Plaintiff has alleged with particularity that the board has not only failed to move the investigation forward, but has also impeded that investigation. Nor does the record indicate that the investigation continues. It has been abandoned.

And yet the SEC still lets it trade.

Read the full decision 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.

“Where Are They Now File” – SEFE Edition (SEFE, PTOO)

It was only a year ago when the Sefe, Inc. (SEFE) promotion was in full swing, and just weeks since Steve Kerr and Michael Quiel were convicted in case that illustrates how they used sham Swiss entities to mask share sales in their promotions.Shannon Kerr left the tattered remains of the company in March. But what has happened to the other players?

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Jonnie Williams, Stock Market Cicada? (SPTPQ, STSI)

While reading the series of stories in the Washington Post about the bribery scandal currently engulfing various Virginia politicians and shady Star Scientific (STSI), a documentary about a curious insect was playing on the television.

The North American cicada, Magicicada cassini, is famous for its distinctive chirp, and its life cycle, returning every 17 years. And so it is with some con men residing in the lower rungs of the stock market, reappearing every so often, and promoting their worthless shares with the same siren songs.

In January 1988 an article appeared in JAMA discussing Retin-A, a derivative of vitamin A, as a treatment for wrinkles. It set off an explosion in the use of Retin-A and a flurry of hype around some other, less well studied, products. The frenzy was so great that then-FDA commissioner Frank Young issued a warning to the public. An article in the LA Times, available here, explains:

Young said some unethical pharmacists, dermatologists and manufacturers were promoting and selling mixtures called Retin-A that actually contain different amounts of the active ingredient, retinoic acid.

Some manufacturers, he also said, are making bogus creams sold as Retin-A or as look-alike products that contain no retinoic acid…The FDA said it was “actively investigating a number of firms” promoting and selling wrinkle creams

Imagine the reaction at a small struggling firm in Massachusetts, called Spectra Pharmaceuticals (SPTPQ) when the JAMA article hit. For years Spectra, its Chairman and CEO, Dr. Al Maumanee of Johns Hopkins’ Wilmer Eye Institute, along with another scientist, Dr. Scheffer Tseng, had been studying their very own vitamin A derivative as an eye ointment first at Hopkins, and later at the Harvard-affiliated Massachusetts Eye and Ear Infirmary. But the studies were quite controversial.

According to a New York Times article, available here:

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