There are some clear misrepresentations in a recent article on Seeking Alpha regarding Pershing and Honig.
Let's clear up a few things.
First, Honig is a board member at Pershing. His role is advisory, not operational. To suggest he is some sort of puppet master pulling the strings of the operational management team is a completely unfounded opinion. That this operational management is headed up by someone like Alfers makes the puppet master theory all the more ridiculous. Why would an industry veteran risk his reputation on a shady micro cap scheme?
Second, Honig is buying as we speak. This week alone, he picked up 340K shares at $3.92.
Third, most of the so called failures listed here are tech and biotech/healthcare stocks. Their market cap hasn’t performed particularly well across the period under investigation, but (as the author states) revenues are climbing in nearly all. IZEA is regularly churning out record earnings data and has a strong and legitimate presence in the social media/ influencer space. Yes, it loses money, but this means nothing in young tech stocks. USELL generated more than $22 million revs Q1 this year – more than its entire market cap.
Even if these companies do fail, this is neither indicative of the scam the author of this article is suggesting is taking place nor representative of Honig's track record and performance over the years. You win some, you lose some. Honig wins far more than he loses.
Fourth, what is this sentence supposed to mean?
"in each case, Honig and Brauser were able to get billionaire investor Phil Frost to take a decent-sized position in numerous stocks"
Frost is a billionaire by way of his business nouse and VERY successful investment operations. You don’t just GET a guy like frost to take a sizeable potion in a company. If his DD team didn’t come up with anything suspicious, that's good enough for me.
Yes, Pershing is taking a long time to get going from a production perspective. Yes, this is frustrating if you own shares. No, this doesn’t mean the company is a scam. Alfers has said himself that the decision to kick off production is an economics rooted one. Why should he rush into production while gold is low?
Bottom line: just because Honig, Brauser, Frost or whoever else is involved in these companies have funded small caps that turned out not to be great long term picks doesn’t mean they are buying shell companies and shilling earl investors for a few million dollars. There's no evidence in this article (or elsewhere) that anything alluded to by Bleecker Street is supported by fact, and it amazes me that some loosely drawn conclusions tacked together in the form of a so called MUST READ EXPOSE can impact investor sentiment so directly.
AI
