Novus Acquisition and Development Corp (NDEV)

[Alan Brochstein]

Has anyone done any DD on this company? If so, it seems like the stock would not be anywhere near here. First, they don't file with the SEC, a big red flag. Gary "Frank" Labrozzi has been running this ticker for years - never getting sales above $100K since 2009. When he first called it an insurance company, that was not correct. Last year, the company bought an insurance company, so maybe technically it is an insurance company, but this is just a consumer service to get people discounts - NOT INSURANCE! There is no MMJ insurance in the country yet.

A quick review of the financials tells what a joke of a company this is:

http://www.otcmarkets.com/financialReportViewer?symbol=NDEV&id=159564

There are 91mm shares, so the market cap is almost $30mm. What does that get you?

1) cash in the bank and investments at 6/30 of $70K. The investments are "Goo Green Inc., carried at $24K with cash of about $45K
2) debt to Labrozzi of $192K
3) YTD sales of $33K

Not much here. What is disturbing is that the company claims to be doing things, but it has no money to spend and spends no money (total expenses year-to-date have been about $28K.)

I look forward to reading the next disclosure, but I doubt things have changed. This recent rally seems like a great chance to exit this loser...