Notis Global Inc. (fka NGBL)

[Fandango911]

Did a little research on redchip after you posted about them being tied to scams.... Apparently the president is pretty outspoken on the subject...

http://www.redchip.com/blog/index.php/redchippresident/pump-and-dump-is-a-pejorative-term-and-rightly-so/#.UuDBoXg77CR


“Pump and Dump” Is a Pejorative Term and Rightly So
Posted on July 24, 2009 by RedChip Blogger
Occasionally, we find a critic of RedChip who in a fury of madness mistakenly throws us into the “pump and dump” category of investor relations firms. The problem with these folks is they set themselves up as an authority though they have little understanding of the small-cap IR business or of RedChip Companies. Their arguments are seeded with logical fallacies, namely, the fallacy of generalization and the fallacy of bifurcation.
We, of course, forgive their childlike logic for they know not what they say. But, as they say in First Amendment circles, bad speech must be balanced with more speech and better speech. I am writing today for all small-cap investor relations firms who operate with integrity and professionalism.
“Pump and dump” is a term used to describe a sudden rise in a stock followed by a sudden fall. This term is typically associated with smaller-cap stocks, micro-caps and nano-caps. The SEC has done a good job of exposing and educating investors on penny stock pump-and-dump scams. These scams are typically executed by Wall Street scam artists — boiler room operators who represent or create “startup” businesses and claim to have a breakthrough technology.
The IR promoters are typically compensated by a third party in free-trading shares and sometimes work with a syndicate of brokers who also are compensated illegally with free-trading shares. The promoters may use email blasts, cell-phone messages, telemarketing, and slick printed mail pieces that make incrediably bullish claims about the company. The common denominator is that the company they are pumping and dumping is a story stock. Fundamentals don’t exist and management is a farce. As the stock moves up, the promoter sells. The “CEO” of these companies is a willing participant in these scams and benefits handsomely. An excellent book on this subject is Gary Weiss’ Born to Steal: When the Mafia Hit Wall Street.
The second common denominator is a lack of transparency and full disclosure both in regards to the company they are promoting (most do not have audited financials) and the compensation the promoter or broker is receiving.
The small- and micro-cap sector is a tough part of the market. It is fraught with failed companies and talented entrepreneurs with poor management skills who make bad decisions and, in the process, the stock is slaughtered and the company fails.
And, yes, RedChip, like every fund investor relations firm, manager, stock broker and investment bank on Wall Street, has made mistakes in misjudging companies and their prospect for success and their management teams. If the brightest analysts in the country can be fooled by the Enron’s of the world, then we and our peers on occasion can as well. Indeed, we operate in the most volatile sector and sometimes “the best-laid plans of mice and men go awry.”
But to associate RedChip and firms who service smaller-cap companies with “pump and dump” enterprises is not only dishonest and potentially libelous but plain wrong.
Consider the following about RedChip Companies:
16 years in business
Offices in Orlando, Paris; Qingdao, China
RedChip has both an independent research and a company sponsored research division.
RC discovered Starbucks in 1992 and was first to put independent research on them.
15 CFAs/MBAs currently write research for RedChip.
RedChip’s history includes Research Coverage on Daktronics, Winnebago, Marketwatch.com and many other blue chip companies.
The RedChip Review has been praised in Barron’s, Forbes, CFO.com and other financial publications.
RedChip’s company-sponsored research analysts’ forecasts are rated as accurate as “Institutional” or traditional analysts.
Independent researcher, Dr. William Buslepp, found “no significant difference in forecast accuracy between RedChip Research and forecasts issued by traditional analysts.” (Paying for Coverage: Conflict of Interest Among Company-Sponsored Research Firms, 2008 doctoral dissertation; p. 51)
RedChip’s 2007 NY conference was the only small-cap conference ever covered by CNBC.
In 2008, RC was the first small-cap IR firm to ring the NASDAQ Closing bell on national television.
Fund managers from the largest small-cap funds in the world attend RedChip Conferences, subscribe to RedChip research, and hold positions in many RedChip client stocks.
Stock brokers and investment bankers representing over 50 firms, including tier-1 broker-dealers, attend RedChip conferences, hold positions in many RC stocks and subscribe to RedChip Research.
RedChip has the most comprehensive platform of research and IR services in the industry: Research, Conferences, Retail and Institutional Road Shows, Radio, Webcasting, Virtual Conferences, Podcasts, Shareholder Intelligence, Internet Marketing and Web 2.0/Social Media Marketing.
RedChip’s client lineup includes profitable, fast-growing companies representing a variety of sectors as well as a select few promising startups and healthcare companies:
ZAGG (Consumer products)
CEU: NYSE Amex (Online education, vocational and English language training in China)
LLFH (Coal, China)
WEMU (Solar products manufacturing, China)
LPIH (Fuel wholesaler and distributor, China)
RXII: Nasdaq (Biotech; RNAi therapeutics; company founded by Nobel laureate)
NG: NYSE Amex (gold)
QGP: NYSE Amex (Health Information Technology)
DPDM (Internet technology; CEO is the largest producer of children’s films for Nickelodeon)
As a final thought, the small-cap IR industry needs a written code of ethics and an organization that upholds the highest ethical standards and edcuates its members on the importance of honesty, accountability and professionalism while insuring that its critics have a truer understanding of the small-cap IR our business.
Respectfully yours,
Dave Gentry
President
RedChip Companies, Inc.

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