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ttottip: know this - the SEC is very interested in any truth claims about any aspect of this company right now
lucky,mydog - if the SEC fully investigates and then suspends, why did they tell me today that the investigation is ongoing - as in 'still open'? This suggests there is more to be learned. I was very curious as to why he could not tell me if the company had been consulted BEFORE the suspension . . . very odd to had down a verdict (or, wait, this is just the arrest) before telling the person what Probable Cause is . . .
They clearly did some level of investigation - enough to meet their criteria of "It appears to the Securities and Exchange Commission that the public interest and the protection of investors require a suspension in the trading of the securities of ______" - standard opening language.
What???! Don't you know that no money is lost until you ACTUALLY SELL????? The 'price' changes. The number of shares you OWN does not UNLESS you sell.
lucky,mydog - I think this is the source of my disagreement with you: "the fda has nothing to do with this." FDA most certain does NOT have anything to do with the suspension or subsequent trading from a regulative position, I agree. SEC/FINRA. However, they very well could play a role in that an FDA approval would prompt certain actions that would mitigate the entire process.
It is altogether possible that this suspension was initiated to cast a negative pall on the company just at the moment it was preparing to request approval. Two real questions for which I do not see non-company-generated evidence: 1) is there a scientifically valid test kit being developed, and 2) is the FDA in the process of approving the test? Not asking you to answer.
As I mentioned to the SEC this morning (he wanted to send me to their documents that tell you 'be sure to do your own research'), they should not tell us to do our own DD and then take action based on evidence that they will not share; evidence that would be extremely valuable to all of us once the suspension is lifted. It a form of "insider trading". All of the research that is available (other than people spouting 'don't do it' - which are everywhere) suggests a legit company selling legit products with a legit test kit. So, until I KNOW otherwise . . .
lucky,mydog - your words suggest that no news can be released by the SEC or the company during the suspension. Not true. MMs may know that there is an FDA approval (in which case, why would there be an enforcement action - assuming all was cleared and legit) and that may prompt them to support the company's trading reinstatement. Pretty sure there is more than one MM who would gladly take those thousands of commission moments on legit company with high volume . . .
lucky,mydog - LOL - learning experience? maybe
but not necessarily for the reasons YOU suggest. it's okay not to know it all ...
I do not KNOW what is going to happen after 10 days, but neither do you.
Answer this, please: Is it impossible that the company gets FDA approval or clears up the issues raised - during the suspension - and resumes trading shortly after on the OTC?
Wow - no money lost here - trading is suspended!
lucky,mydog - ah, those words . . . they matter:
"more nonsense. mm's are extremely reluctant to sponsor a 211 submission to finra for a company that likely has an ongoing sec enforcement action."
but what you cannot know is whether or not DECN "likely has an ongoing enforcement action" at the time suspension ends. It may in fact have an FDA approval, and I doubt your proposed concern for the MMs will be valid.
lucky,mydog - "more nonsense. any shorts will be able to cover easily on the grey market."
But . . . but . . . I thought the grey-market was terrible! Oh, I see . . . only for longs, got it! If liquidity problems exist on the grey market, they exist for both side of the trade, or by definition there IS NO liquidity problem.
lucky,mydog - yep, no suspension, (wrong association) just investigation of the party assumed responsible for the attack, which could be relevant here soon. I'm pretty sure it will be cleared up and we get back to business per normal, but perhaps quite a bit more green in the tank.
lucky,mydog - really? never?
Google this: "A hint came last September, when the SEC brought a rare “short and distort” case against hedge fund manager Gregory Lemelson for making false claims about Ligand Pharmaceuticals Inc, an allegation which Lemelson has denied."
Further, if they admit it is near-impossible to prove, it is practically legal. So . . . did Berman make intentionally misleading statements?
llcoolm11 - thanks!
Have DD that suggests malicious short attack to prevent DECN from participating in the COVID-19 solution community? 40+M shares sold short yesterday opens a suspicion, especially given the next day suspension. A roving Dump and Pump group heavily invested in another product? A competitor with an eye on this space? Etc.? Might want to contact the SEC 202-551-4822 or 202-551-4746. They want to hear from all interested parties with evidence or data from all sides.
no_ur_stox - very well stated. I agree.
Did anyone talk to the SEC? I did.
- They can't talk about ongoing investigations . . .
- Noted that I would like for them to consider more than rumors and accusations against the company, to visit with Mr. Berman, et.al. and look closely at what was said and what was not said.
- I noted a concern that this may be a malicious short attack (not just shorting the stock) to deprive the company of a lucrative place in the COVID-19 solution community. Look closely.
I operate on two assumptions:
1. The SEC contacted DECN and Berman BEFORE suspending the stock (they neither confirmed nor denied), to which a corollary is that Berman knew about possibility of the upcoming suspension when he released the PR yesterday . . . (there is much to tease out of THAT).
2. The SEC does thorough and full investigations of the entire web of potential causes for accusations.
Some things come from these assumptions.
If the SEC had NOT contacted Berman before suspension, well . . . how is that a thorough investigation based apparently on the public record? How could reliance upon the stated public texts be properly vetted, especially since the lofty sales numbers were moderated considerably over the last month and anyone who was reading them had an opportunity to act on the information?
What did Berman mean by "technology perfected"? Is that made clear in any other document? If they can do it, but later on it is improved, was he lying? If so, why does this "improvement" not apply to any other improvement? So much parsing needed.
What Berman has said about sales forecasts:
Numbers projected by Berman in PRs:
3/16 – “forecast” 480M
3/17 – “forecast” 525M
3/20 – none given
3/23 – no projected date “tens of millions . . . by the time”
3/25 – none given
4/3 – none given
4/6 – none given
4/7 – none given
4/21 – none given
4/23 – health care products distributor estimates 1M / mth
Notice that after 3/23 there is no projection by Berman of sales numbers, and the HCP distributor he is working with has a much more modest projection - anyone could have (perhaps did) sold on 4/23 with this new 'projection' by the HCP distributor.
There may be some really surprised shorts and gloaters in two weeks.
Berman had already corrected one concern on 4/23
From the SEC: "Those questions relate to, among other things, . . . (ii) DECN’s sales forecasts for the COVID-19 test kit that up to 525 million test kits would be sold in the first year of production. \
Berman in PR 4/23: "The company estimates it will be asked to produce 1 million "Swift Kits" per month through the end of the year just for the "back to work" markets, based on the rapidly building demand."
Big Differnce - more relistic.
IPwatcher - why is it not looking good? Do you have evidence that they do not exist? If so please share.
Just because the SEC questions something does not mean it's the case. Remember how Lamaitre was written off repeatedly by Einstein as not knowing how to do math . . . until Hubble proved Lamaitre correct and Einstein's "steady state" wrong!
Concern about sales forecast: language important
and (ii) DECN’s sales forecasts for the COVID-19 test kit that up to 525 million test kits would be sold in the first year of production.
If we sell even ONE test kit, the claim is valid = "UP TO" which advertisers do all the time - "we can save you UP TO 80% on your phone bill, house payment, insurance bill, etc.
Easily refuted.
Notice the language carefully:
(i) DECN’s statements claiming to have “technology perfected” to allow it to manufacture and sell a COVID-19 test kit that would provide results “in 15 seconds, based on a small finger prick blood sample,” and (ii) DECN’s sales forecasts for the COVID-19 test kit that up to 525 million test kits would be sold in the first year of production.
Two issues: 1) claim to perfection of technology (apparently rubbed someone the wrong way) and 2) overstating sales (525M).
Zoom in: Words "technology perfected" in quotation marks - is this the heart of the issue? Also, sales forecasts of UP TO 525 M cannot be incorrect if they sell even 1 kit!
From the "fake" PR yesterday, IF TRUE . . .
"In addition, the company's lobbyist has engaged several influential members of Congress who have spoken at length with the company and its representatives. The Congressmen have agreed to carry the ball on behalf of the company, beginning with direct communication with the Pence Covid-19 Task Force. This process began on April 20."
I'm sure you can see the correlation.
JohnnyC- How do you know what SEC based it's decision on? Please share your access links or phone numbers.
lucky,mydog - how many SEC evidence packets have you seen? Please share how you accessed them . . .
SEC Office of Sec. 202 551 5400 - out of office until 1:15! Gotta love THOSE hours!
Berman's phone 805-446-2973 is busy! LOL - all input lines tied up . . .
lucky,mydog - And NO PROOF behind the suspension either . . . LOL
During a sting operation, sometimes a good guy gets caught as well. Takes time to unravel . . . which is why the SEC should be REQUIRED to post EVIDENCE for it's decision. Police cannot arrest a person without PROBABLE CAUSE, which must be explained to the arrestee. Much to question here . . . MUCH.
lucky,mydog - while you gloat, I will confirm as much as I can - peace . . .
Longs - if you believe . . . here's some of what you can do to gain clarity. Only one way to establish the truth and it is NOT by listening to any more BS on this message board; rather, MORE research needs to be done. Feel free to post here IF you choose.
1) confirm FDA information as much as possible
2) email/contact your representatives for access to information from SEC related to EVIDENCE for the suspension
3) demand an explanatory email from Berman ASAP
4) deal specifically in your research with the reasons the SEC listed:
"those questions relate to DECN’s press releases, among other things, (i) claiming to have “technology perfected” to allow it to manufacture and sell a COVID-19 test kit that would provide results “in 15 seconds, based on a small finger prick blood sample,” and (ii) issuing sales forecasts that up to 525 million COVID 19 test kits would be sold in the first year of production."
@lucky,mydog - I'm sure you can see that is NOT evidence - that is a list of questions . . . WHERE is the evidence?
When trading resumes, "a broker-dealer must file a Form 211 with the Financial Industry Regulatory Authority (“FINRA”) representing that it has satisfied all applicable requirements, including those of Rule 15c2-11 and FINRA Rule 6432."
Suspended for "questions" - based on . . . ???? Where's the evidence?
Where is the SEC's research packet that supports this suspension?
Well, Mr. Berman, what say you? You love PRs. Speak, now!
Not showing halted:
https://otce.finra.org/otce/tradingHalts
Yes, not to mention the perfectly "legal" method of dropping the price low enough to trigger a bunch of stop-loss orders in the first place - selling your own shares to yourself! Gotta love SEC "flexibility"
Huge indeed! See CODX for comparison.
The dump was about 5M shares . . . probably single group led by online guru. Now accumulating for the inevitable.
Sell the good news = short the hell out of it so you can buy large and feast on the $10 run . . .
Every time I read it, it gets better!