Biotech Values

[DewDiligence]

After reading the biomedreports.com pump piece on BVTI, I emailed the author to object to the way the article papered over the company’s bankruptcy by mentioning it only briefly in the final paragraph. The article failed to point out that existing shareholders won’t see the upside in the event that the drug actually works because creditors are ahead of them in the pecking order. Instead of pointing out the obvious pitfalls, the article gave credence to the dubious notion that the shares could skyrocket if BVTI found a replacement partner.

Well, the author replied to my email by saying, “It was a great trade… our readers expect us to cover these moves.” He made no apology for encouraging people to buy the stock of a bankrupt company based on a phony premise.

Given the above, is it at all surprising that biomedreports.com is now pumping HEB?