US Stem Cell Inc (USRM)

[Dragon Lady]

And as fast as it went to .08 it went back to about .04, then below that, then pumped to about .06 again, it then back to .035 yesterday and today. You think this is "normal" trading? It has all the hallmarks of a classic, pump n dump IMO.

The run to .08 was based on nothing - no real news of any substance IMO. Yet the chat boards lit up like Christmas trees preceding it, as did Twitter and PR and other outlets. Have you ever read details of how someone like "ASHER" does what they do? Ever read a classic, pump n dump described by credible investing sites or people who have worked the inside of these places that do um? Did you see how the spread opened up on "buy" orders, small $100 or so orders taking 5% or more spread to fill, as it began to move up sharply? Then, once the peak was reached for about a split second, it was tanked hard to the downside, so fast you couldn't blink and if you had sell orders in, they'd never get a fill at .08 as you tried to catch a falling knife.

To say this is all "cool" and no biggie and all is naive IMO. Look at about a 2 yr chart, you can plot the pump n dump cycles like ducks to water. Don't think Asher and others will unload this coming up? Well good luck to you. My 2 cents, it's gonna drop so hard, so fast one day (when, I don't have a crystal ball?) but if the past "cycles" are any indication, it hangs here a few weeks or so, then it starts the downward track back to penny-ville.

There is nothing new in that 10-K to indicate anything different IMO. Mirror is stalled by all facts/reports, versus hype. Cash is low and desperate as always, they doubled the outstanding shares from 200 million to 420 million or so in less than a 1 yr period (if they can't dump shares anymore, if that day comes, it's lights out- and always remember, they already defaulted on a key loan once which created "Northstar"), the sales being boasted about were noise level of about $5K a month- not even a micro dent in their cash burn, the CEO just boosted his salary/compensation package to near $1 MILLION annually and Comella also got a big boost and bonus awarded- all as they're bleeding cash and not even moving their flagship trial forward or progressing on the key items they boasted about in past PR- and that's not a problem?

To me, it smells of a huge problem. Boosting compensation as they're bleeding out cash and using the worst financing a company can survive on? AND getting "bonuses" too boot? Bonuses for WHAT? For having the main trial appear to go nowhere, for the stock spending most of the yr in the 1 to 2 PENNY range, etc?

Now another "study" being announced today- I googled for that "doctor" and all I get is references to his office location and practice. Not that he's even got a web site, or has any expertise at running clinical studies, or is published, etc- just a big google goose egg. AND it's being done outside FDA and is, in typical fashion, IMO so carefully "worded" you have to parse it down- as in, " The study will enroll up to 100 patients". You see that wording "up to"? You know what that means? That means between ONE and 100. If they enroll ONE patient- then they've met the terms of the PR, stating UP TO 100. Very carefully worded. A more typical wording, IMO would be, "The study will enroll a MINIMUM of 25 patients and may enroll up to 100 if needed". See the difference? They've made it so that if ONE patient is enrolled- then the PR is truthful. As posted earlier- it's "word-smithing" IMO. Further, it says it "study has been reviewed and approved by the Institutional Review Board (IRB) of the International Cellular Medicine Society (ICMS)." Well, look that group up, they, per their own wording on their web page are for "outside the FDA" or something to that effect. They also were FDA audited not to long ago, and written up on a bunch of stuff.

http://www.cellmedicinesociety.org/physicians/irb/415-fda-audit-findings

http://www.cellmedicinesociety.org/attachments/415_FDA%20483%20-%20ICMS%20IRB%20-%2019%20June%202012%20(redacted).pdf

It appears to be nothing more than some self organized "group" as I see it- and largely, again, seems to be designed to work outside the U.S. or outside the rigorous requirements of the FDA, again IMO from reading their own info.

From their site:
"Audley went on to express concerns over the FDA’s recent activities with regard to point of care treatments, stating, “While we do not dispute their regulatory role, we are concerned that FDA is trying to exert an influence over the practice of medicine by establishing authority over what studies an IRB can approve. "

So, again, another PR about another "undertaking" and as usual it's "vague" at best in my opinion. Some doctor is going to do a clinical "study" of degenerative disc now, and "enroll" "up to" 100 blah, blah, blah. And this will lead to what? When? How? It's going to be funded how? Expected results when? The doctor they named has what published background in clinical research, etc? Just vague as can be IMHO, and typical "PR".

Look at the financials on Cardio3. Their R%D to SG&A is about 1 to 1 or better. BHRT spent almost 4X their R&D budget on paying themselves + the rented suite and whatever else you pay for in a 4 or 5 person company- most going to TWO people (25% of the general SG&A went to Comella and CEO from what the 10-K indicated, anyone can do their own math, crunch the numbers, but that's my take from looking at it). $600K lousy bucks went to "R&D". The cost structure, especially if you're in cash-tight, tough times to me is totally lopsided. Most CEO's and other Sr Mgt take pay cuts, or forego pay for a while if the company is bleeding cash and in tight straights. Read the compensation section of the 10-K for a good hoot.

My opinion like others, and it's mine only, is it smells bad. That blog today, was a, "You gotta be kidding me" type event. All this, "email the CEO, he'll tell you" and then, "There's gonna be a blog update, it will all be in there" and then poof, the big blog comes out and we get the War and Peace Vol II version of the happy story about BHRT, with MIRROR buried deep, somewhere in there, so hard to find, it took a couple of reads to even find it. A lot, I think are insulted by the whole thing. Another post stated continually emailing asking for specific clarification of financial questions-vagaries, and those somehow always go un-answered according to that poster.

So, big deal they blew it to .08 for a micro second and then dumped it just as fast. They took it to .06 not that long ago, and it was back at a penny not long after that. It's a "trade" at best IMHO, it's no longer an investment. It's looking more and more like classic penny-ville IMHO. Just classic. Just the salary/pay package boost to near a Million a yr, that alone pretty much does it for me. All I need to see and know. The "smell test" is no longer passing per my standards. My opinions only - anyone else, fall in love with it as you like, buy a ton, hold, sell- whatever, it's a free country and a free market. Good luck to you all.