Hello fellow suckers
I just saw the post about Frank and his new company. Wow, it is a who's who of crooks! RobertRico is a scammer who involved with a company that had ticker EXPU. It was almost an exact duplicate of CAGR in the way it fleeced investors. It too was taken over by someone like Jeff. Amazing how these guys just keep going from one scam to the next. I got into this world at a time when I was desperate for money and learned in two months that penny stocks are a scammers palyground and you will lose if you don't get out during the pump. Best strategy is to stay away and invest in stocks where companies are real, have revenue or leaders with a track record. Finally never ever follow advice on these boards blindly as you never know who it is writing, as we learned here. So, is there any reason not to write these stocks off as dead? Does anyone see CAGR actually resurrecting into an active issue ever? I am holding some shares that are not saleable, so it is a decision of whether to write off and take the tax loss.

Yes! Got mine through TDAmeritrade end of September after filing a bunch of paperwork through the transfer agent.

This makes no sense. First the company only has 70 mil shares outstanding so 2mil shares cannot be less than 1% of anyone's holdings in this company as it is almost 3% of the entire company. Second is that Dr. Frost sellimg has no impact on amount of shares available for retail investors. Company would need to issue shares for that purpose. If there was a shortage of shares for retail it would mean price would be rising and no one would be selling. Right?

There was a Seeking Alpha article in June 2012 which attacked Dr, Frost and listed all his failures in an attempt to say OPKO was going to end up just like these others. Most of the names were companies that were merely in the early stages of development by Dr. Frost, such as SFES, ROX, IDI. The article listed them all as examples of Dr. Frost making mistakes, which we can now perhaps see was just a bit premature in concluding the companies named to be failures. There is one company however which looks like Dr. Frost got out of and perhaps did lose on after a big investment. That would be Protalix (PLX). I can't find this name in the list of Dr. Frost's holdings and it would appear that he did at one time own a lot of shares. This article claims he lost 300 mil in one day. However the article was so far off base, I really don't trust much of what I found, so please check this out for yourselves. For all I know Frost made a bundle selling his shares or whatever he did in the end. Here is a link to this SA article for those who want to see a guy who made a call too early or was short and doing everything he could to help his cause.
http://seekingalpha.com/article/661541-opko-health-investors-likely-to-get-frostbite

There was a Seeking Alpha article in June 2012 which attacked Dr, Frost and listed all his failures in an attempt to say OPKO was going to end up just like these others. Most of the names were companies that were merely in the early stages of development by Dr. Frost, such as SFES, ROX, IDI. The article listed them all as examples of Dr. Frost making mistakes, which we can now perhaps see was just a bit premature in concluding the companies named to be failures. There is one company however which looks like Dr. Frost got out of and perhaps did lose on after a big investment. That would be Protalix (PLX). I can't find this name in the list of Dr. Frost's holdings and it would appear that he did at one time own a lot of shares. This article claims he lost 300 mil in one day. However the article was so far off base, I really don't trust much of what I found, so please check this out for yourselves. For all I know Frost made a bundle selling his shares or whatever he did in the end. Here is a link to this SA article for those who want to see a guy who made a call too early or was short and doing everything he could to help his cause.
http://seekingalpha.com/article/661541-opko-health-investors-likely-to-get-frostbite

I posted on the BZNE board that an SEC filing was made today for a sale of 2mil shares by Dr. Frost on Oct 1 which would explain the heavy pressure we have been seeing. It was pointed out that Dr. Frost and Opko own more than just these shares , but in my following the Dr. He rarely sells unless he is getting out. These shares may have been warrants and there could be an explanation of why he sold, but I am a bit concerned and would welcome any news or information from other followers. I have done very well with OPK and SFES, , etc. having gotten into following the Dr. three years ago. I liked BZNE for a natural addition to the lineup , but can't figure any reason he would be selling a huge chunk if he was planning on continuing to back the company. I will be looking for additional sales in the coming days, but I think we should all be on alert, as we are also always the last to get this type of information. Seems like some others were selling this week before this was public knowledge. Hmmmm.

How do you find the balance of holdings? I was trying to get that. Also it seems very unFrostlike to be selling a position he believes in. I've been following him for a few years and the only times I have seen him sell big chunks like this were when he was getting out of a company. He wouldn't divest all at once, so I am definitely concerned that he will be selling more. It certainly accounts for the big drop. Seems like even though the filing was first posted today, it wasn't a secret to some other investors out there who have been selling this week. Makes you wonder how the little guy stands a chance when we are always the last to get any kind of news.

I saw an SEC filing of form 144 which looks like Dr. Frost sold his shares on Tuesday. Guess thats why big move down and the heavy selling.

Has anyone tried contacting Ken Looney lately with any luck? Is this shell still under his control?

Will BZNE be added to the list in the intro ?

Here is what I learned today. Before the PBTH shares can be converted to OPK every shareholder must fill out and return a form for Israeli taxes. The brokerages are waiting to receive these documents and once they have will send to us. This is all being handled through DTC and the transfer agent AST. I tried contacting all of these people to no avail. We just have to sit back and wait. Very very frustrating since this is locking up all of my margin availability as the Prolor shares now have no value and the OPK shares are not in my account. It's as though this has never been done before and no one knows how to handle it. We the small investors get screwed every time however because the big guns don't care when it happens as they have plenty of capital unlike us.

What's up today? Consolidating before heading higher? Any thoughts from my fell Dr. Frost fans? I have been enjoying this ride after being patient for two years. Bought in at $4 in 2011 expecting good things after researching Dr. Frost. Also picked up SFES at about $0.40 which I am not as sold on but has provided a bigger quicker return. Is NIMU or LTS next?

Any ideas why the big move? I see no catalyst for it and am left wondering if it for real or just a spike that will disappear and leave those late to the game wishing they hadn't come at all. Or is this the start of a sustained move higher? With no news and no indicator that the company has sold additional product or even has additional products to sell, it is hard to figure. Any thoughts from investors who have a clue?

I sent email to that address and got back SEC registration statements. What I ended up doing is finding George on LinkedIn and writing to him through that. I will add that on his last communication with me he quite emphatically told me to stop bugging him and write to the IR department.
I had asked him about dilution of shares through the newest issuance of warrants. He gave me an answer that doesn't make much sense to someone with a business background. I guess he is assuming I am a rube, which maybe I am compared to some, but I have run business bigger than the one he is running and I didn't think his answer was more than covering his ass. here is the exchange cut and pasted from my email:
I wrote--Hello again Mr. Blankenbaker
I appreciate your past responses to my inquiries. I wish that the stock was doing well and things were clearer so I wouldn't have questions about the way you are operating.
Why did you need to further dilute our shares by issuing the latest warrants if revenue goals are being reached?
When will you release financial statements? Seems late for the quarterly report. I would love some insight and news.

His response---Our fiscal year end is March 31 .. for this we issue what is called a 10K which are the audited accounts for the full year .. because of this the Auditors require additional time and the deadline is June 30.

Yes we are starting to generate revenue .. but we need to scale operations and have a history of revenue before the company will generate free cash flow. In basic terms .. you need money to pay for a product so that you can sell it at a profit. If you don't have enough money to buy your product, you need to raise money or finance the purchase of your product so that you can then sell it and generate a profit. A company needs to build scale and a history of profit generation before they will have sufficient cash on hand to pay for the next round of product from their own cash. For further understanding .. please consult with your accountant and our SEC financial filings.

The warrants from a fund raising we did in August last year (part of the S-1 filing that went effective in Dec) had an automatic reset clause that was triggered by our convertible note financing in February. We also required additional cash flow to finance the harvest so some warrants were exercised. Usually warrants are not exercised unless the holders are deep in the money so we issued additional warrants as an incentive to exercise near the market value. These additional warrants will provide additional required funding if exercised when the company further expands.

George

Ludo
I posted the full copy of his response. As for the headquarters, I decided that it was not a question I cared about. So, he has a crappy office in Indianapolis and he is trying to start an agri- business in Asia. He doesn't need plush digs here, to do that, which is almost certainly the answer he would have given. He has some kind of financial business he runs out of the house and really it has nothing to do with whether or not the business in Asia will succeed. I was more interested in finding out about the financial statements and what he was doing with the money and where it was coming from. Hope that helps. I am not savvy enough to ask probing questions, just a regular guy who wanted answers about whether this is a scam or a real business.

So, after posting my concerns here yesterday, I wrote to Mr. Blankenbaker to express those concerns to him and ask him and surprisingly I got an immediate response which I am happy to share with anyone who is interested. As a shareholder I was really pleased to hear that I was wrong in suspecting that there might be some impropriety. I won't post exactly what I asked, but will remind you with highlights. 1 and 2) I thought perhaps they were counting as revenue the proceeds of financing activity 3)I asked about the $750,000 officer salary on the Dec. 2011 annual report and the $281,000 director fees 4) I asked about G and A expenses, etc. 5) I asked if Farm management fees of $650,000 were paid to him 6) Professional fees of $352,000 seemed excessive
Here is his response to my concerns;
1) Revenue is defined as sales of product and services
2) Financing does not show up on the P/L statement .. it is reflected on the balance sheet
3) There has been no cash allocation to me or the directors. We are paid in Shares. The $750 listed for me were original founders shares issued to me at the time of the reverse merger when I put my assets into the company. These were escrowed and I earned these as the company reached certain milestones and they were valued based on the then current price of the stock. This is all explained in the original Super 8-K issued to the SEC in June 2011. We only do well if the company does well. As a founder .. I am restricted in selling my founders shares .. SEC rules limit to 1% of the outstanding float of the company per quarter.
4) The company took the stance that the exectutives .. me .. would not take a cash salary until the company turned profitable.
5) Farm management expenses are for the development of the farming operation which so far has generated $3 million in revenue
6) Professional fees are legal, auditor and filing expenses. They increased largely because of the S-1 filings that were/are required for the current financings.
This was all he said with no editing whatsoever. I hope it helps some of you who may have wondered about what was in the financials when last reported. Good luck to all.

Upon reading the latest filing with the SEC I am even more disappointed than I was seeing "headquarters". The sole employee and director takes a huge amount of money in director fees, and all sorts of other line items on the financial statements. Why did they need to raise capital with a dilution on the same day they announced the $3mil achievement of their target? Because I think they include money raised through financing as revenue in achieving this goal! Unbelievable. this is the last line of their timeline. note the ** which says the $3mil target includes external financing. Again, what a scam.

Goals Status Requirements Timeline EstimatedBud
Adequate working capital 1st Quarter 2013 (est) 3,000,000 **
** This is what the Company is targeting through a combination of revenue generation and external financing.

I have been an investor hoping this was truly not just another penny stock scam. A nice person here on Ihub advised me to see what happened when you type their corporate address into Google maps and do a street view. I did and am wishing I had done this previous to investing any money into this "company" I suggest you all do the same. Hard to believe a company with a $20 million market cap is headquartered in a run down house that also serves as a financial services business. It's not even the nicest house on the street. That would be the attorney living next door.

Just wondering how you know this? Have you been to their place of business or seen a financial statement showing regular repeatable revenue streams? I have been waiting and hoping, but I've seen this pattern before and can't believe I didn't know it was a promoted company. The next time I see one of these promoted stocks stay up after the initial run, will be my first time. I made money in that but not knowing it was a newsletter stock, I went back in on a dip for a bit more and fohnd out its not a real company with a real product I guess. Sure hope I learn from this one. Shame on Mr. Blankenbaker. So many slick operators preying on poor unsuspecting greedy get rich quick dreamers. The Great Recession took a lot of us into that realm. George Bush all but bankrupted our future and we build him a library, a place he had heard of but never been to.

Hey all, I have been away from the boards for a while. I had emailed Ken a while back and here was the response I got. Chad and I seem to be on the same schedule. I had written him previously with no answer. So here it is from 2/21/11
wish I had more or better news. If I did I would have posted it sooner.

From: Ken Looney [mailto:KLooney@tecenzymes.com]
Sent: Monday, February 21, 2011 5:28 PM
To: Wounded Bear
Subject: RE: STMC shareholder information

I have been out of the country and just returned. Debt is still the issue with Smart. We have potential mergers if I can get the debt structure redone. Still working on it.

I am so disappointed in this stock and this company and Frank. I bought into all i read and thought this was a guy who was being transparent and doing the right things to build a compay and it would pay off down the road. I now see that like all penny stocks with very few exceptions, it was a manipulation aimed at artificially pumping up the share price for a time and then bilking anyone who stayed in. The shar manipulation that began last February should have been a clue. you don't issue shares when you are supposed to be retiring them. then the sales never seem to be in line with the inventories. Then we see an incredible amount of receivables in relation to sales. all point to a company that isn't real ro interested in growing, but one that is pretending to in order to sucker as many o us as they can for as long as they can.
I would love to find just one real winner in penny land to amke up for all of te losers that I have followed only to see the share price drop precipitously after a breif run up. happens every time. I guess Tim Sykes actually does know what he is talking about.

I just don't see how silence is golden in a situation where people need answers? I would not be judging if someone would step up and say, in a week we will have some answers, hold tight. The lack of any responses is just terrible in my opinion. This is like when G.W. Bush in the face of a disaster sat in front of us and said "everything is fine. Brownie is doing a great job." Or when he was told about the 911 disaster and he sat in front of those school children with that dumb look on his face not knowing what he should do, or how he ignored what was happening to the economy for 8 years and told us he knew what he was doing. Silence is never golden in a time of trouble. People need answers. While everything may be fine in a week or two, (I certainly hope so for people who have more at stake than I) but the guy who was touting these plays should step up and give some reassurance, not be off working on a new website that he wants us to pay for. Just my opinion, but I think it is valid.

Are you still doing these calls? Is anyone going to address the board about what has happened? Is Monk ever going to appear again to tell us what he thinks? I beleived in this guy and those of you who swore by him and am left wondering why no one is talking or answering these questions?

I find it amazing that he wouldn't come back here to address this with those of us who followed and listened. Wow. This may be the most disappointing one yet. This guy really appeared to be one of the good guys and now we find out he was just another scammer getting into our pockets. I guess all of the people who wrote testimonials were in on it too? The Ex-Blockman and guys like him who appeared to be true believers, and it was all a scam? Why isn't anyone saying anything here?

how do I join these conference calls?

Is Monk done posting on this site? Are we never going to hear anything about what has happened in the last week? We saw all of these great testimonials from people and how he changes their lives, and now when many of us who trusted in these are fearful, we get nothing but silence? Please Monk, do the right thing and tell us what you think of the events of the last couple of weeks and what to expect from the FLD's you have been touting for so long? Were we all taken to the cleaners by a group of thieves or is there hope that we are just looking at a temporary downturn? How about some kind of message from Monk. I can't believe he remains silent.

Thanks Chad for the update. I will do the same at the end of November and see what the response is then. Keep the faith baby!

Anyone tried to contact Kenny Looneytunes lately? I last did on July 15, but of course got nothing except the usual BS.
Just wondering. I guess I'll ask him again if there is anything going on in a few weeks. I will inquire quarterly, so I'll let you all know around 10/15 if anything has changed. I'll try not to wake anyone up, since I expect nothing but his usual stringing along and telling us not to give up.

This is absolutely not true. I may not be in touch with the climate right now due to the long recession, but banks do lend on a solid business plan and a dream, with no hard collateral if the business plan is solid and doable. I know because I had a banker who knew me and loaned me millions of unsecued dollars based on a business plan that made sense and was executable. Of course he was in auditing constantrly to make sure I was on track and performing with those dollars, but this actually helped me many times when that banker made suggestions that helped us to be better than we knew. So, yes banks do lend money to startups if they believe that they can build a business together. As the business grows so does the need for additional funding and the bank makes more money loaning to this growing business. This is how it has been done for a long time. Of course private money has funded many startups as well, because it takes a great banker with vision to take a chance on a business, and these dyas there are very few bankers and mostly a bunch of accountants in stuffed shoirts who are not authorized to make business decisions that require judgement.

Hey Laylos,
I get that he needs to finance the business, but if he has a strong business plan, why not use a traditional funding method like borrowing from a bank? Find a banker who believes in his story and get a loan to grow the business. Stop issuing shares and trying to cover up the fact that you are issuing them. I will try very hard to make thispoint to Frank during the next conference call. I hope if I am not able to be on it soomeone else will do so for us.

I really want to believe everything you say in this well written, well thought out post. You have me along with everything except Frank's transparency. I just wish this guy wasn't so busy issuing shares all the freaking time. He announces a share retirement, and then in the following quarters financials he shows us that he reissued all of those shares and even increased the amount of shares outstanding instead of the stated goal of reducing. This is the one area where Frank loses me. he keeps playing the penny stock game of financing through massive issuances of stock. No matter how hard he works to build his company, shareholders will reap no benefit if our shares are so diluted that we have more shareholders than China has people. Of course Frank with his preferred shares will benefit, but what about us? That is why the share price is comparable to what it was way back when, because there are 3x as many shares outstanding. (not an exact figure, just an estimate to make my point btw) So, please tell me how I am wrong about this and how we become rich with the current share structure? I really do want to be wrong since I am in this with almost 7 million shares. I have bought many at "bargain" prices only to see Frank lose PPS with more shares issued when I thought he had said he was reducing the number of shares outstanding only to see it keep growing. Finally, now we can't even find out because the TA seems to be gagged at the present time.

Wounded Bear is holding 6,645,000. Sorry I never corrected this and I should have. whats a couple million worthless shares give or take though. I pray each and every day that these shares will not remain worthless. you hear that Frank? C'mon, some of us believe in you and are counting on you to make us some real money. Are you listening Frank? Don't let us down.

Hey Hawkeiz, would you be willing to educate me as to what it means when you say "ask side thin"? I am looking at level 2 screen and just can't figure out how you can determine this. Are you looking at something else to get that conclusion? Perhaps I don't understand the term like I think I do. Am I asking you to give away some valuable piece of information that I should be able to find out on my own? Please clue me in if you can, I really want to be able to follow these discussions and understand what people are talking about. Thanks.
WB

Hey STMC people,
Back in July I decided to write to Mr. Looney again and see if anything had changed. Here below is the exchange for your enjoyment. I got nothing except the knowledge that Ken is an early adopter who got an Ipad early on. Glad to see the PPS isn't hurting him.

On Jul 15, 2010, at 1:44 PM, "Wounded Bear" wrote:
Hello Mr. Looney,
I thought I’d write you for my quarterly report. I am assuming by the total inactivity here that you have not yet worked out deals with debtholders, but was wondering if progress is being made or complete inactivity? Is there still some hope that you will find a way to wring some value out of this shell for us poor shareholders, or are we just hanging on to a dead issue? Is time still on our side and should I just sit patiently and wait for you to make your move, or is this something you are no longer proceeding with? Any news at all?

From: Ken Looney [mailto:klooney@tecenzymes.com]
Sent: Thursday, July 15, 2010 3:00 PM
To: Wounded Bear
Subject: Re: STMC shareholder information

A little progress but not enough to write home about. Attorneys are still pro-active in suing the company. When that settles down and court action takes time, we'll see what's left. Don't give up yet. Sorry I don't have better news.

Sent from my iPad

I was not as lucky. guess I caught them on a bad day.

Thanks for the reply.

Hey TMJ, I would really like to do exactly as you say. Do you by any chance have any info on how to contact the patent office or which retailers are being sold these products? Any info you can help with would be much appreciated. Even if you could help point me to where to ask for this info if you don't have it. I have tried to contact the company, but gotten no responses. Perhaps I went about it wrong.

wounded bear is still holding strong with 7,095,000 shares. I must admit i am concerned, but am not selling unless I see strong evidence that Frank is not going to continue to grow this company and make us all wealthy. For now he seems to be delivering on all of his promises and contiues to frow the business ta a reasonable and manageable pace. I do wish he would stop diluting the share value by issuing shares to finance growth. I hope he will find private funding as a backer to do this in the future. So far this is my only complaint about Frank's management of the company, which is pretty high praise, as I usually am a complainer of the highest order and find worries that no one else can even imagine.

This is very interesting information. thank you for this post. While I knew something of this, your pointing to the businessjive website allows me to learn more and I wanted to thank you for that new piece of information, and allowing me to learn something new, which is my goal for every day. If we can learn something new every day, we continue to grow as human beings and it betters us as people. Bet you didn't expect to help somone grow as a person today.

Hey Fink, I sure hope you are right. I am looking forward to seeing big increases in revenues and income every quarter. I sure do hope Mr. Y stops issuing shares to pay for any expansion going forward. I am surprised by those who answered me with saying that this is old news. If you read all the PR's it makes it look like Frank was going to be reduscing the O/S shares and it is clear he had no intention of doing that. I am really disappointed in the way the share structure looks and was not fully aware of the continuing dilution over the last couple of years, as Frank was PR'ing about share reductions.