RMDX
Posted by: pick em low
In reply to: max2205 who wrote msg# 14927 Date:2/18/2008 12:27:17 PM
Post #of 14962
Ah, this is why RMDX down, it's probably not related to rule 144 changes, unless that's true too and it's a combination of both things....
Posted by: petermic
In reply to: None Date:2/14/2008 4:13:08 PM
Post #of 214
=DJ IN THE MONEY: RemoteMDX Stock Down 34% In Heavy Volume
By Carol S. Remond
A Dow Jones Newswires Column
Game over at RemoteMDX (RMDX).
The stock of this Utah-based security device company had been on a
tear after large insider Vatas Holding GmbH visited fund managers late
last year to rally support.
RemoteMDX stock took off after bullish Vatas managing director Lars
Windhorst told fund managers that he planned to have the stock of
RemoteMDX trade on the Nasdaq stock exchange, where it would garner
more attention and support.
A security has to have a bid price of $4 a share or above for 90
consecutive days before being eligible to trade on Nasdaq.
Alas, while RemoteMDX' shares traded at or above that threshold for
a short period of time, the stock quickly faltered and dropped below
$4 in late December.
Through its SecureAlert subsidiary, RemoteMDX offers TrackerPal, an
ankle bracelet combining cellular and global positioning system
technologies that help law enforcement officers track offenders.
RemoteMDX stock topped at $4.22 a share on Dec. 7 but closed below
$4 on Dec. 27. The stock was recently trading around $2 a share, down
34%, or $1.02, on the day.
Perhaps coincidentally, support for RemoteMDX' stock appear to
falter after Windhorst was involved in a plane accident in Kazakhstan.
According to published reports, Windhorst's plane stopped over in
Almaty for refueling and collided with a building on takeoff. A pilot
was reported dead and Windhorst was reported to have been injured in
the crash.
Windhorst and SecureAlert's President Randy Olshen weren't available
to comment despite numerous telephone calls seeking comment.
Windhorst is quite a celebrity in his native Germany. He was hailed
as a wunderkind entrepreneur in the 1990s when he started his own
electronic company at 16 years old. He later fell from grace as his
business faltered and he was forced to file for personal bankruptcy in
2003.
Perhaps alarmed and or distracted by its sharp price drop, the
company in a corporate press release issued early Thursday came up
with a new accounting term to highlight its financial performance.
While investors might be familiar with earnings before interest,
taxes, depreciation and amortization or EBIDTA, RemoteMDX appears to
be the first company to use "loss before research, depreciation and
amortization" to describe its performance.
RemoteMDX reported "being operationally positive cash earnings on
total revenue of $6,005,545" for the quarter ending Dec. 31. "When
compared to the same period ending Dec. 31, 2006 that showed $988,237
in revenues, and a loss before research, depreciation and amortization
of $4,934,427, RemoteMDX shows impressive financial growth as it
continues to execute on its Business Plan."
According to its quarterly report filed with the SEC Thursday,
RemoteMDX had $7.7 million in cash at the end of December with total
assets of almost $22 million. For the last quarter of 2007, the
company reported a gross profit of $1.4 million and a loss from
operations of almost $4.6 million.
The company burned through $1.3 million in cash in the quarter
ending Dec. 31 and carries a "going concern" warning.
Short sellers, those investors who bet that the price of a security
will decline, have long been critical of the company. There were 12.8
million shares of RemoteMDX sold short on Jan. 31.
A short selling Web site called Citron Research, formerly known as
Stock Lemon, highlighted alleged issues with RemoteMDX in early
December.
Asked about Citron Research's report on the company, SecureAlert's
president Olshen in December declined to comment and said that the
company would issue a formal response via email. Olshen didn't reply
to an email request, nor did he respond to several phone messages.
Citron Research and other short sellers have peered over RemoteMDX'
reported sales, raising questions about several large clients.
Among those is Security Investment LLC, a company which accounted
for 48% of SecureAlert sales in the three months ended Dec. 31, 2006.
The company reported net sales of $835,000 that quarter.
Online records show that a company named Security Investment
Holdings LLC was incorporated to do business in the state of Utah on
Dec. 12, 2006, 19 days before the end of the quarter.
The company was registered by C. Eugene Gronning who happens to be a
RemotedMDX shareholder. Gronning didn't reply to several telephone
calls.
(Carol S. Remond is an award-winning columnist who won a Gerald Loeb
Award in 2005 for best news service content with "Exposing Small-Cap
fraud," a series of articles that described how three small companies
unscrupulously pumped up their stocks.)
-By Carol S. Remond, Dow Jones Newswires; 303-997-5783;
carol.remond@dowjones.com
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(END) Dow Jones Newswires
02-14-08 1601ET
Copyright (c) 2008 Dow Jones & Company, Inc.
- - 04 01 PM EST 02-14-08
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