Spencer Pharmaceutical (SPPH)

[sunspotter]

"Extremely undervalued right now in comparison to the 1.10/share takeover."

That would be true if it weren't for a few minor details, such as:

1) Spencer Pharma is literally worthless. Their sole asset is a patent which I suspect would collapse with any serious challenge, and is for technology that can be, and is, worked around by any number of other SR/MR technologies. Their liabilities outweigh their assets many times, and they have no cash to speak of.

2) Their business model, as I have described in the iBox and in the latest sticky, is unworkable, except as a cover for a pump and dump operation. Their "product", Met4, is millions of dollars and many years from the market (assuming it works, which is no slam dunk) and even if it reaches the market, that market niche is already fully satisfied by low-cost generics.

3) They are in default to their so-called research partners, INSA. They haven't even made a single payment to them.

4) Spencer Pharma's CEO is associated with other scams such as HZHID (although he resigned as Chairman in the past few days, he will continue to be associated with the company. HZHID is run by a convicted slum landlord and bootlegger) and AFLB.

5) A mysterious third party has paid in excess of $250,000 to various penny stock promoters such as IAB to duplicate and reproduce SPPH's PRs on their sites. No doubt coincidentally, message boards such as this are at the same time flooded with highly optimistic and uncritical parroting of SPPH's clearly false PRs.

6) Strategema Capital, supposedly Spencer's consultants on this phantom buy-out, have suddenly disappeared from public view, and cannot be contacted.

6) The Kuwaiti third party allegedly making the buy-out has a UAE-based moble phone number as its sole contact. This company has been variously described as Al-Dora, Al-Dorra and Al Durrah in materials is NOT related to the petroleum services company Al-Dora (http://www.al-dorra.com/), which is the only entity identifiable on the web that has a name like the one given by SPPH's PRs. The alleged buyer has never issued a public statement confirming SPPH's PR claims.

7) The two named principals of Al-Dora/Al-Dorra/Al Durrah,

"chairman, His Excellency Dr. Bandar Al-Dhafiri and its CEO His Excellency Hussein Al-Awaid"

(http://www.marketwire.com/press-release/Spencer-Pharmaceutical-Discloses-Al-Dora-Holdings-as-the-Buyout-Offering-Entity-1354658.htm ).


are untraceable via the Internet, even though with the "His Excellency" title they should be Gulf Royalty, not a group normally associated with anonymity.

Spencer Pharma is a scam, that much is clear. I wonder about all those who post as if it wasn't.

I can only guess what their motivation might be.

In the meantime, SEC have once again been notified of the revived SPPH pump.