Fundamental problems with The Biz:
1) Transparency We have hardly any information regarding the identities of the new control owners or even of the old owners and the company is delinquent in financial reporting. Almost all information on the company comes from anonymous, unverifiable sources.
2) Value proposition It remains a mystery as to why a new owner would pay $19.35 million for control of a broke pinkie only to have to split any potential profits with the public shareholders.
3) Likelihood of fraud Lets face it, folks...ACDU is an easily manipulated, thinly traded pinkie with a sordid history that includes paid promotion. This is the kind of situation that is a magnet for fraudsters. What we have already witnessed is a classic pump and dump.
4) Risk of SEC action If the SEC suspected that something might be amiss with the value proposition, it could save the resources that a fraud investigation would require with less than ten minutes of research into flagrant delinquent filing that could result in registration revocation and a suspension of trading.
DD is meaningless where a lack of transparency and a strong possibility of fraud are present.
