Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I think it's funny that you guys keep calling the article fake. It's clear someone has done a ton of research into this, whoever was behind that article, and yes it was biased, but do you think it would have gone down that much if at least some of it was right?
Uh oh, another Board resignation..
I actually think this one is good. Reid Dabney was the CFO of CodeRebel which was suspended by the SEC, I feel like if he was kicked out that would be stronger but getting the people with negative ties out of the company is a good start.
how is institutional ownership going up proof of a conspiracy as to a JP Morgan analyst asking a question? I agree that it was odd but your "proof" is insane, at best
This quarter looks like a blowout, I wish I had bought before. I was planning to see what they had to say about the acquisition on the call. Oh well :) Good luck to all those involved here it seems like it's seriously undervalued here even after the pop so I might see how it trades and then initiate a small position.
What do you guys think about the most recent acquisition? Skout seems like a bit of a distraction, but also like it could unlock value. The price seems steep to me.
I disagree, I think that if Honig's attorney said that if the article was removed and the apology was posted then the situation would be over then the lawsuit was brought in bad faith. I'm curious what you mean about him being "fed to the wolves..." ??
Exactly, I don't know why no one is focusing on that. I would guess that he either has it in writing or at least recorded. Since it appeared to be a direct quote in the response. If it was not recorded or just verbal then I think that it would be hard to put that in quotes. Anyway, finally someone agreeing that the author of the report is pretty good at what he does... will be interesting to see how it plays out.
I have no idea what Seeking Alpha's practices are. I really don't see the issue with someone else writing the article and someone else publishing it. Unless there is some payment or the management of the company is writing the article like with GALE and the other articles that Rick Pearson has exposed. Investors collaborating on stocks both long and short has been going on forever, as I'm sure you know.
I really don't think you guys give the shorts enough credit. Look at GeoTeam and Glaucus research. I subscribed to GeoTeam when I retired and they have done very original work on shorts, and have made me money on both long and shorts. I highly suggest subscribing to them, it's an interesting space.
Agreed, this confirms what we thought previously. I'm guessing Honig thinks there is a ring of short sellers that are bashing him, and he's suing to discover their identities. Kind of like the Overstock case against Gradient Partners. Will be interesting to see how that plays out.
He responded to the complaint, likely an admission of collaborators. The lawyer thing is a non-issue. As long as the lead attorney's are named it doesn't matter who else is, they will be served as a matter of course once they are on the electronic docket.
What mistakes do you see in the filing?
How do you guys think this is a coordinated short attack? Company has crap data, that's why it's down so much.
Read point 30, it looks like Honig's lawyers said that if the article was retracted they would drop the case. Additionally the retraction was drafted by Honig's attorney's. I see that Honig has filed for expedited discovery, not sure what the legal reasoning is.
Question for longs: If BSR hadn't retracted the article would that change your opinion of the company?
Yes it will.
I'll be curious to see what the response says, but if I had to guess they don't have much of a case despite the retraction. If I had to guess Honig's attorney's probably wrote that retraction or at least said what had to go into it. If that's the case then the lawsuit is likely frivolous.
My guess is that Honig thinks there is some web of individuals trying to bring him down since he seems like a very paranoid person. If I had to guess the case won't get much further past that. Honig would not want to open himself up to discovery, especially from a short seller who would probably love to dive into that can of worms. Anyway, I believe the response has to be posted by tomorrow so that should be interesting to read.
Just saw the 13D that shows Frost is back in? If I'm reading it right looks like he owns 20% of the stock now?? Am I reading this right? If so it looks like he got entirely out, and then used the dip to get back in. That's a big % of the company and if I'm not mistaken more than what he usually purchases.
Right, I was thinking best case scenario. By the way I just saw this on Pacer. Barry Honig is suing BSR, I think it's interesting that it's him suing BSR and not Pershing or ChromaDex. My 2cents is that it was probably Honig's lawyers that orchestrated the withdrawal after a quick read of the suit.
As to if they can get people on the board, I think that they probably can at some point. I actually would rather see a younger guy that would be more invested in the day to day of the company than an older guy that came from a big name company, just my 2 cents.
Frank,
You actually make a great point here and the Bleecker report might actually be a positive for this company. Like I said my main qualms are with the people involved, not the product, which appears promising. If the report got their attention and they are aware that some potentially problematic people have been involved in the stock, then they should take action against those people and it would make it more likely that Chromadex succeeds.
As to the question of options, I think they are probably waiting until after they report to issue them. If you issue them here, even if it was when you issued last year, it looks bad. If the report is good and the stock goes up and issue them it would look like you believed in your company. An even bigger endorsement would be forgoing options and having every executive make a large purchase. Like you say though, doubt we'll see that happen.
Frank,
You actually make a great point here and the Bleecker report might actually be a positive for this company. Like I said my main qualms are with the people involved, not the product, which appears promising. If the report got their attention and they are aware that some potentially problematic people have been involved in the stock, then they should take action against those people and it would make it more likely that Chromadex succeeds.
As to the question of options, I think they are probably waiting until after they report to issue them. If you issue them here, even if it was when you issued last year, it looks bad. If the report is good and the stock goes up and issue them it would look like you believed in your company. An even bigger endorsement would be forgoing options and having every executive make a large purchase. Like you say though, doubt we'll see that happen.
Karin,
I wasn't suggesting that you were paid, I was merely saying that readers of your piece will likely have their personal capital on the line here, and that any significant person that was involved with the company should be explored carefully. Just because he was not their at the very beginning does not mean that everything is kosher. Again, I wasn't suggesting that you were paid, but rather that it would be irresponsible for someone who is invested in the company not to have read the article.
Karin,
I know you're not invested with your own money in the company, but I would strongly urge you to read it. Staking your own name to something without knowing a key part of the story is not wise.
Well Jaksch was still an investor in Honig's private deal http://www.secinfo.com/d12TC3.r1J9d.d.htm?Find=jaksch&Line=4566#1stPage
I'm not satisfied with his response, although I appreciate him taking the time to do the interview and it looks like the rest of it was solid. Empire Sports was another company that was either run or invested in by Barry Honig, so the connection goes deeper.
I agree that Honig is no devil, but even in the microcap world his companies have a very high failure rate it would appear. Have you read the Lakewood Capital piece on Opko that talked about Honig?
That's a fair point, but then again, it speaks to the quality of the company. I'm sure he did his due diligence before joining the company... On the other hand, at 77, I would not want to be bothered with much in the way of stressful business ventures. Like you said, it is likely that he realized there were some people involved in fraud that I would probably quit. Just no upside.
But the question remains... Barry Honig's track record and the fact that Jaksch was an investor in PGLC certainly speaks to him being close with Honig. And just a quick look at some other articles on Seeking Alpha show that Honig clearly does not have a good track record.
Additionally, the Lakewood Capital report on Opko from 2013 called Honig a serial stock promoter and highlighted all the ties to stock promotion and fraud he has. It truly is eye opening to see these games played with microcaps. Even if one has no view on ChromaDex as a business or Nigaen, it should be concerning that these guys are so heavily involved with the company.
People can sue you for whatever they want, you might win, but they can drag things out for a very long time and make things expensive for you. Even if everything you said was a fact, they can still sue you. After reading the Bleecker piece and the CDXC's response, that seems like the most likely outcome. CDXC would have had a much better response and the director would not have resigned if the article wasn't true.
I'm an attorney and that screamed that it was written by a lawyer. That type of stuff isn't posted without lots of legal threats. Of course we're all just guessing because we didn't sit in on the negotiation between Honig and BSR
I don't think that BSR ever said that Barry Honig started the company... Just that his presence as a shareholder and a board member was red flag enough. I appreciate your interview though Karin. I don't think this story is over on the long or short side.
You guys are too quick to dismiss the Blecker st article. It might have been taken down but anyone can see that that was just the author trying to get rid of lawyers... Be careful out there