Precipio Inc (PRPO)

[laser777]

This needs to be near the top on a day like today....

Who is selling shares here?

If you look at a 3 month chart, you see this bizarre behavior in the share price. What has happened in the last three months? First thing that comes to mind is there has been outstanding news. The company has increasing revenues, they have launched Multiplexed Ice Cold PCR, and they have also launched a few cancer specific Ice Cold tests, and have issued their first license agreement. But the stock still remains at 1.20. Well, what else has happened in the last 3 months. We forget that a financing was done with Crede Capital.

http://finance.yahoo.com/news/transgenomic-announces-private-placement-financing-113000096.html

What, you say is the big deal with this? Well,I say, who is Crede Capital and what are they doing?

If you look at their website, they, on the surface look like the ideal firm. They claim:

No discounts in direct equity investments.
Single investor: no "rush to the exits," portfolio companies out perform.
Crede Capital Group is not a hedge fund guided by short term performance captive capital source.
Deal terms provide lowest cost of capital for issuers.
No shorting or hedging employed.
$5 Million to $50 Million range of investments.

This all looks great, so why am I SUSPICIOUS?
Lets look at the principal figure heading Crede Capital.
Terren Peizer. Who, you say?

https://en.wikipedia.org/wiki/Terren_Peizer

Investment career

In 1980, at age 20, Peizer was recruited by former Treasury Secretary Robert Rubin of Goldman Sachs. He was believed to be the youngest "Associate" during that era. In 1983, he was recruited by First Boston and quickly established himself as the most profitable High-Yield Bond Trader. He was often referred to as the "Michael Milken of the East Coast"[7] because in his workaholic manner, he provided Drexel Burnham Lambert clients with an alternative to the Milken-controlled, High-Yield Bond market. During his association with First Boston Peizer capitalized a little known reverse merged company, Danaher, Inc. Today, Danaher, Inc. is one of America's largest industrial companies. Peizer's most notable work while at First Boston, came when he and his clients led the restructuring and financing of Ted Turner's insolvent Turner Broadcasting Corporation. Peizer capitalized Turner Broadcasting Corp's CNN and WTBS Super Station with $185 million; thereby, saving the Turner Broadcasting Corporation from bankruptcy.

In the spring of 1985, in an effort to remove the competition from the marketplace, Michael Milken partnered with the Peizer, and made him senior vice president of Drexel Burnham Lambert. Michael Milken immediately anointed Peizer as his "protégé and left-hand man."[8] Because Peizer and Michael Milken shared clients, desk and phone,[9] it was not long before Peizer assumed responsibilities for all of Milken's direct client relationships. This made young Peizer the most productive executive on the famous X-shaped high-yield bond desk. His reputation as Milken's top sharp-elbowed traders[10] would provide the foundation to his investment career.

In the midst of Drexel's liquidation that occurred in 1990, Peizer was laid off with 5,300 other Drexel employees. Peizer agreed to testify against Milken in exchange for immunity, helping send his former boss to prison.[6][10]


IMHO, I believe Crede is hoping Transgenomic will need additional financing, and is shorting everything here to supress the stock price. In MO, they have sold everything they bought, and assume they will back for more money, and they can cover everything they shorted with this hoped for new offering. We have had many attempts to run on good news, but it seems Crede is always there to SLAM THE DOOR! Old habits die hard don't they?

If TBIO can monetize more assets, launch more tests, further increase revenues, and sign more licensing agreements, their backs will be broken and their short covering will become fuel for a major rally!

All JMHO...