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Synthesis Energy Systems (SES) has a failed clean energy technology called coal gasification. After years of trying to make it work, the company generates no revenues today.

SES doubled in one week ahead of its 8 for 1 reverse split on 7/22/19, now is good timing for a short.

SES potential asset sale to Australian Future Energy (AFE) is non-sensical. AFE has no developed projects and was funded by SES.

Other stocks have recently been decimated after reverse splits.

Neuralstem (CUR) did a 20 for 1 reverse split on 7/1

Applied Energetics (AERG) became an empty shell in 2014 and remained that way for 2.5 years.

There have been no significant achievements since executives laid out a plan to revive the company in 2017.

The share count has more than doubled since 2017, and the stock price has risen over 400% since the beginning of the year.

A whopping 48.7 million shares that were bought for $0.06 or less are now getting registered for sale.

On 5/24/19, the company issued 2.5 million warrants at a $0.06 exercise price, which we believe

Although invented 10 years ago, BioSig’s PURE EP System add-on device has had no published clinical data, only bench and animal studies.

The company said they would present clinical data at the Heart Rhythm Society (HRS) conference, but they did not do it, suggesting the data is below expectations.

Cardiologists we have asked have said that there is no need for this add-on, conventional EP machine signals are already clear enough.

Our research reveals that the PURE EP is unnecessary for the treatment of Atrial Fibrillatio

Summary

Soliton is a Reg A+ IPO, which means they could not get institutional investors, so they had to raise money from crowdfunding.

SOLY has put out 17 PRs since March, fueling a rally with no substance in our opinion.

SOLY’s first lock-up expiry is May 20th, and we believe it will be a bloodbath for the stock, similar to what happened to Reg A+ stock Adomani.

SOLY’s tattoo and cellulite removal devices

Establishment Labs (ESTA) has taken the breast implant industry by storm with its next level technology, 6th generation, Motiva Implants.

The reoperation rate is under 1% with a Motiva implant, no Motiva patient has gotten lymphoma, and the Motiva Ergonomix implants are a game changer.

A recent bearish report on ESTA discussed its related party transactions and an allegedly biased clinical study. But we conclude that these are not a big deal.

The FDA recently sent a warning letter about breast implant safety, which we belie

Torchlight Energy has an enterprise value of over $130M. The company’s entire perceived value is based on possible oil in its Orogrande Project.

TRCH only paid $3.35M in cash and stock for 75% of the Orogrande in August 2014 when oil prices were much higher than today.

TRCH has little cash with increasing debt, and if it cannot sell the Orogrande, we believe the company is finished.

In April 2018, TRCH said it would sell its Hazel Project, but never did, and raised equity instead.

In April 2019, TRCH said it wi

We believe the 400% appreciation of Conformis (CFMS) in 2019 is not from any positive fundamental developments, but from hype and speculation.

Its customizable hip implant, reported at AAOS, is not new, has been FDA approved since 2017, and is too early in clinical evaluation to justify a rally from it.

CFMS business has many flaws: its customizable implants have not been shown to be an improvement to standard implants, yet they are more expensive and have a longer implant process.

The company made small improvements in Q41

American Superconductor stock has risen over 100% since July 2018 on little progress in its businesses. We expect a fade back to $7 or less.

The company has had significant losses for the past 19 out of 20 years with its grid and wind businesses, a pattern we foresee continuing for many years to come.

Most of AMSC’s rally has come from puffy PRs and hype regarding its resilient electric grid and ship protection services government businesses.

We believe both of these businesses, which are in the trial stage, are impractic

T2 Biosystems’ recent Breakthrough Device designation by the FDA isn’t an acknowledgement of the device’s effectiveness or clinical value proposition, only that it diagnoses life-threatening conditions.

The T2Dx Instrument adds additional hospital expense but provides little clinical value, hence the miniscule sales numbers.

The value of the T2Bacteria test is low because it does not measure bacterial susceptibility to antibiotics and, therefore, d

Apyx is a provider of J-Plasma technology that has failed every medical application and is now only targeted for two off-label cosmetic applications.

J-Plasma use for dermal resurfacing has nasty side effects and heals very slowly – most cosmetic surgeons we have surveyed will not touch it with a 10-foot pole.

Apyx did not reveal the results of its clinical study on J-Plasma use for dermal resurfacing – a red flag that it may have missed its endpoints.

An almost identical product to J-Plasma called Portrait PSR

  • NBEV is a $500M market cap struggling US beverage roll-up attempting to reinvent itself by marketing CBD-infused drinks
  • The Company’s recent ‘key’ licensing deal to sell Marley branded CBD drinks comes with unfavorable economics as NBEV will pay a high 50% of gross margin for the license.
  • Insiders lock-up agreement expires on 2/6/19, which will allow over 6 million shares to be sold.
  • NBEV has run up 100% since its November financing at $3.50 per share without significant fundamental news in our view.

FSD Pharma’s founder, Thomas Fairfull, and director, Anthony Durkacz, have a history of value destruction. Durkacz had an average loss of 92% over 11 stocks in which he had involvement.

The company spent $8 million on listing fees, which is a head-scratcher, as it is multiple times larger than what comps spend.

Durkacz has received an astounding sum of over C$28.7 million total current value in cash and warrants for being both a director and broker for FSD.

FSD Pharma routinely announces investing in other small cannabis

We present a strong bearish thesis on Helius Medical (HSDT) and deep research dive. It has been given the prestigious status of a Seeking Alpha Top Idea. See the article here.

Here, we include BONUS MATERIAL, that we didn’t include in our Seeking Alpha report.

More Dirt On Montel Williams

We report in the article how Montel Williams has promoted other

Each 2018 quarter, Orchids Paper (TIS) has had a consecutively worse financial performance.

For the past two quarters, Orchids’ gross margin has been almost 0%, while its SG&A and interest expense have ballooned to unsustainable levels.

We believe the banks won’t extend Orchids deadline for a sale of its assets, and it will file for Ch 11 bankruptcy by the end of the year.

TIS recently rose over 100% on insignificant news, which we believe creates a good short opportunity.

Next quarter, marketing for

TransEnterix (TRXC) was originally funded by a notorious investor recently charged by the SEC for orchestrating pump and dumps.

A TRXC director just sold ~$23 million of stock; TRXC has a historical pattern of retail fueled rallies that end with insider selling and major stock declines.

Major flaws prevent TRXC’s Senhance surgical robot from being used commercially, it’s mainly used clinically and for training purposes.

Side-by-side clinical studies of the Senhance show inferior results versus standard laparoscopy.<

We found Namaste’s consultants are actually officers of the company, including the head of its audit committee.

While other companies spin off assets to shareholders, Namaste instead sold an asset to an officer at a loss. He is now taking it public for his gain.

Namaste acquired AF Trading, which appears to be owned by an employee of Namaste, yet another related-party transaction.

Cannmart’s head office is tiny and does not appear to be worthy of the title “Amazon of cannabis.”

Namaste insiders may be

Generation Next Franchise Brands Is A House Made Of Frozen Yogurt That’s About To Melt

  • Generation Next Franchise Brands’ (VEND) $130M market cap is based on the potential success of its sole product, a frozen yogurt vending machine called “Reis & Irvy’s” or “Froyo Robot”.
  • As the company has only just begun delivering Froyos, its revenues are miniscule. The company also loses a lot of money, reporting a $5M loss in quarter ended 3/31/18, a $3.8M loss in 12/31/17, and a $4M loss in 9/30/17.

Viveve Medical (VIVE) had a horrendous Q1 2018 report with a big revenue miss, decreased gross margins, and a $12M loss.

With the company’s sizable expenses, it will take over 4x as many sales as they have now just to have a break-even year.

The Viveve System got FDA 510(k) regulatory clearance in the US in October 2016, almost two years ago, there’s now market saturation, and the easy sales have already been taken.

Viveve management’s recent actions show desperation, such as the CEO’s abrupt

Level Brands (LEVB) is among the latest 2017 Reg A+ IPOs – so far they are all trading below their IPO price.

Level Brands CEO, Martin A. Sumichrast, has a long, checkered past. His latest partner was running a huge Ponzi scheme.

Level Brands hired RedChip which has been aggressively promoting the stock on TV and in email and social media campaigns ahead of the lock-up expiry on May 17th.

Level Brands does not produce any products, it is a newly formed marketing company for products that have not generated much sales.

Capstone Turbine has gone up over 100% in the past 3 months, but business is not doing well as they recently missed revenue consensus.

The expensive microturbine can’t compete with cheap electricity from solar and wind energy and cheaper per-watt engine generators.

Capstone is currently paying for road shows and investor presentations, not to sell microturbines, but to sell stock.

We believe Capstone will remain unprofitable for many years to come, keep burning cash, and keep selling stock to stay afloat.

Capst

Longfin had a Reg A+ IPO on December 13, 2017, originally at a $382.5M market cap which ballooned to its $3.27B market cap today from its acquisition of Ziddu.

Ziddu, a cryptocurrency microlending company, has a business model that doesn’t make sense because Ethereum is too volatile to use for loans.

Ziddu.com’s website history shows that Ziddu coin is only a basic ethereum token and wallet that got rebranded by Longfin in December 2017 as a microlending story.

Longfin recently engaged in dil

Nymox drug, fexapotide, to treat enlarged prostate, is about to have its marketing application decided in Europe within a few months, and we’re betting on a rejection.

Nymox did two phase 3 trials for fexapotide in the US with a total of 1,000 patients testing throughout one year. Both trials failed to show improvement over placebo.

Years after the phase 3 trials, Nymox reported follow-up studies with positive data to those trials, but evidence shows it is unreliable data.

For Nymox’s follow-

Although we started shorting Ampio (AMPE) in the high $3s, we continue to hold our short position. We don’t believe that Ampio’s osteoarthritis drug, Ampion, will ever get approved, and the company will likely be required by the FDA to do another trial to seek approval. Their next trial will likely have the same result as their previous Ampion trial, which failed to show improvement over saline injections.   If our thesis is true, the stock will go sub $2 in short orde

ClearSign Combustion’s Duplex Technology Is A Commercial Failure, The Stock’s Downtrend Will Continue

  • ClearSign’s green energy Duplex technology has been tested by refineries for many years but has resulted in very few adoptions. This is because oil and gas companies care about profits, not pollution control.
  • Evidence suggests the Duplex technology sacrifices some production in order to decrease emissions.
  • We interviewed the inventor of the Dupex Technology and he had some interesting insigh

Marrone Bio is broke and approaching bankruptcy with $2M cash burn per month and over $23M in debt principal due next year.

The company has not been able to significantly decrease its high quarterly losses with its tough business of selling niche bio-based pesticides.

The company is in a desperate situation with directors leaving and a key emergency lender appears to have gotten cold feet.

We believe a big equity raise will happen any day now and will be similar to SenesTech’s recent raise which plummeted its stock by

We have reached out to over 100 European surgeons who use the da Vinci surgical robot. The surgeons’ opinions on the TransEnterix Senhance System were almost all negative.

TransEnterix has been aggressively marketing the Senhance System in Europe since late 2015 and hasn’t sold one in Europe since February 2017. Has only sold two systems in total in Europe.

TransEnterix CEO Todd Pope has always been salesy and over-enthusiastic in the earnings calls. We believe his statements should be taken with a grain of salt.

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PolarityTE is a reverse-merger, pre-revenue, pre-clinical tissue regeneration med-tech company with a main product that’s patent-pending.

PolarityTE’s first product, SkinTE, just got registered for commercialization through a non-FDA approval route. The company is ready to sell to physicians who will contribute to SkinTE’s clinical studies.

SkinTE has generated a lot of buzz, as COOL stock has skyrocketed over 800% since the beginning of the year to a fully diluted market cap of over $400 million.

Is this tech

In October 2016, Everspin (MRAM) IPOed at $8 per share and traded there until a Barron’s article in May caused a strong rally. It is now fading back to $8.

Everspin’s MRAM is too expensive to compete with DRAM, as DRAM will continue to get cheaper and better, and Moore’s Law will continue for many years to come.

Everspin has overly high analyst estimates, and management has hinted that it will miss guidance.

Small companies like Everspin do not last in the memory chip business, economies of scale are essen

ShiftPixy uses a social networking app to match employers with part-time “shift” employees.

ShiftPixy’s CEO, Scott Absher, has a checkered past with some pump and dump scams where the SEC had to step in.

ShiftPixy management talks a lot about the new app, but it’s dysfunctional, and has very few downloads after being released a month ago.

We believe ShiftPixy is nothing but a struggling staffing agency trying to look like it has a revolutionary “Uber-like” technology.

With very sm

  • At an adjusted book value of $0.066, GRST has limited downside, and is a potential 10x bagger over time.
  • Ethema Health owns two treatment centers, runs one, rents the other, and is currently acquiring a detox center.
  • Ethema Health’s treatment center in Delray Beach, Florida is breakeven at only 14% capacity.
  • There are only two other publically traded behavioral health companies – AAC Holdings (AAC) and Acadia Healthcare (ACHC) and they have gone on a strong uptrend recently. We expect GRST to go on
  1. In the past month, Delcath has risen 1000%+ on promotional hype and no fundamental news.
  2. Delcath is engaging in death spiral financing, the convertible note holders can buy shares at a 15% discount to the recent market price and then immediately sell in the open market.
  3. Delcath’s outstanding share count went from 39 million on February 10, 2017, to 374.4 million on June 5th, 2017, and 439 million on July 5th.
  4. Delcath is conducting clinical trials on its same technology that failed to be approved by

Specialty pharma company PDL BioPharma has invested a lot in its acquisition of hypertension drug Tekturna, and has hired a 40 person salesforce solely for it.

PDL’s salesforce is already rolling with convincing doctors and copayers to prescribe and pay for Tekturna, and its sales will grow.

Despite reaching a low in its current downtrend, PDL expects to remain profitable, has a large cash position, and a share buyback is in place.

It has very low interest rates with its convertible bonds, and there is very little dil

If Ominto Was A Private Company, It Would Be Worth A Fraction Of Its Current Price

  • Ominto, an online cash back provider, has risen over 150% solely on the hype and exposure of being uplisted to the Nasdaq from the OTC exchange on 2/14/17.
  • It has tiny sales, stagnant growth and consistently loses $1M-$3M per quarter over the past four years.
  • A CEO of a top cash back website we interviewed hasn’t even heard of Ominto or its cash back website Dubli.com.
  • Ominto has made what appears to be a

Matinas BioPharma (MTNB) is one of those rare, no-brainer, diamond in the rough, short ideas.

Matinas BioPharma’s stock has moved from the OTC to the NYSE MKT on March 2, after running up 200% in two months. It has since fallen 20%.

We value MTNB at $0.63 per share, and believe the stock will continue downtrending for a 45-80% decline from here.

We uncovered evidence that Matinas’s largest shareholder, GJG Capital, is covertly run by a barred broker, and on 3/15/17 converted warrants into common stock, suggestin

Lead attorney for Straight Path’s shareholder lawsuit says Straight Path management perpetrated a “years-long fraud”.

“Use it or lose it” is the FCC’s harsh attitude towards unused spectrum like Straight Path’s. Straight Path has a one year deadline to sell its spectrum.

Evidence from the FCC, telecoms, and technology firms all suggest 28GHz spectrum is far superior to 39GHz spectrum. 86% of Straight Path’s spectrum is 39GHz, 1

While there has been talk of doing away with private prisons for years, investors of private prison operator stocks GEO Group (GEO) and Corrections Corp (CXW) haven’t taken it too seriously. That is, until August 18, 2016, which was a dark day for privately run prison companies. Corrections Corp (CXW) opened that day at $27.06, and closed at $17.57 for a 35% loss. GEO Group (GEO) opened at $32.32 and closed at $19

With Scientific Games large size, the recent CEO change was likely the right choice and investors should buy on current weakness.

Billionaire Ron Perelman, a 40% shareholder of SGMS, late last year bought shares at $8 so that price may serve as a floor of its current weakness.

With the rise and spread of legalized gambling worldwide, there are many positive upcoming catalysts for Scientific Games.

Scientific Games technology is thriving in the hot online gaming market and in person gaming.

The current global economic

Hyperkalemia, or high potassium in the blood, is unnecessary to treat unless it’s at a severe level.

Most medicare and most insurance companies don’t cover Veltassa for a reason.

Veltassa is inferior to its competitor, ZS-9, because ZS-9 can treat both acute and chronic hyperkalemia patients, while Veltassa can only treat the chronic market.

Veltassa’s black box label is a big drawback.There are problems with the drug and its trials, as revealed by government-funded researchers.

A potential Veltassa

With energy prices low, Synthesis Energy’s (SYMX) syngas technology is even more uneconomical than it was when energy prices were high.

The company hasn’t had a profitable quarter in over 7 years.

SYMX has a shady past with deals that never go through, and that won’t change despite management’s big talk.

Even though its production is idled, the company is putting out PRs saying it will take on more projects in order to excite retail investors.

Read full article on Seeking Alpha Read more

– We have a price target on TransEnterix (TRXC) of $1.20 by the end of the year. TRXC real goal is to sell stock to uninformed retail investors. The company, insiders, and institutional shareholders are selling their shares, or filing to, on this recent pump.

– TRXC has three products: their SPIDER surgical system, a failed product which they are discontinuing, and two surgical robots: the ALF-X and the SurgiBot. Evidence shows both are impractical and have little to of

  • ReWalk’s (RWLK) Veterans Affairs (VA) coverage was expected from the last two earnings calls and already partially priced in.
  • No sell-side analyst showed excitement on the coverage news. Barclay’s analyst raised the PT from $9 to $11, 25% below the current price.
  •  A negative catalyst is coming up: With only $25M in cash, and $6M per quarter cash burn, RWLK is filed and ready to do a large share dilution soon.
  • Due to a low gross profit margin, RWLK n

– Emerge Energy Services (EMES) had an atrocious 3rd quarter and is a bankruptcy risk. We have a $2.50 price target on the stock.

– There are three possible upcoming negative catalysts for EMES: 1.The amendment of its credit facility 2. The start of an ATM equity financing. 3. The 10-Q with “going concern” language in it.

– OPEC is picking up production while US shale is decreasing. Iraq is suddenly flooding t

–  Horsehead Holdings (ZINC) has risen 100% over the past two weeks from a spike up in zinc prices, which has created a ripe shorting opportunity.

– If zinc prices don’t rise soon, Horsehead can go bankrupt in two years. Its zinc hedge expires after 2015.

– Horsehead has had perpetual problems getting its biggest plant, Mooresboro, to half capacity. Its latest update

– VBL Therapeutics (VBLT) put out a PR for its ovarian cancer drug, VB-111 with the word “positive” in the title. However, the drug is a complete failure and the data isn’t positive at all.

– The word “positive” in the title mislead investors and is what caused the stock to rise from a close on May 13th of $4.08 to the mid $5 range today.

– VB-

It’s a crazy market we’re in. Hot money has pushed InterCloud Services (ICLD), an IT and network solutions provider, from a close of $1.52 on April 30th, to over $4.00 today, for no fundamental reason whatsoever! In time, the share price will return to below $2 per share, because the company hasn’t improved to any degree to merit a higher share price.

Two PRs the company released have fueled this 150%+ rally. It started on May 1st, when ICLD Read more

– Ballard Power (BLDP) sold its fuel cell manufacturing patented technology to Volkswagen for $50 million.

– Selling assets is nothing new for Ballard as it continually depletes its cash, but it sold a core asset – its automotive fuel cell technology patents.

– Ballard has never made any money for the past 20 years.

– In a couple years, for the first time Ballard will be completely shut out of the automotive industr

Today, Aeropostale (ARO) announced higher than expected earnings. But it’s not what it looks like. The following developments indicate that ARO is on its way to bankruptcy.

1. In a PR today, ARO said the forecasted earnings don’t include asset impairments. This likely includes inventory right downs. That will show up in the GAAP earnings statment.

2. Bigger decline in same store sales than expe

– MD Anderson (MDA) has a lockup period of four months before it can sell its $115M of ZIOP and XON stock it received for selling them the license to its CAR-T cancer therapy, Sleeping Beauty.
– MDA’s Ex-VP of Research, Leonard Zwelling, wrote about a conflict of interest arising from the deal, in which it’s against MDA’s interest to report any negative find

– Intrexon (XON) licensed a cancer therapy from MD Andersen which cost them $50M in stock.

– Intrexon paid an extra $7.5M to get the deal done quickly so they could present it at the JPM Healthcare Conference and hype up the stock.

– Intrexon might have joined the cancer immunotherapy party too late.

– That’s too bad, because the company is almost out of cash and likely about to have a huge equity raise.

Connecting The Dots…Short Intrexon

 

  • Viggle’s (VGGL) business, incentivized ad viewing, is bottom of the barrel ad view quality.
  • VGGL spends more money to get users than it gets paid by advertising companies.
  • VGGL spends close to $2M per month on advertising and marketing. At this rate, they’ll need to raise more money in 1H15.
  • VGGL makes almost 100% of its revenues on mobile phones from its mobile phone app, and the app has a low download ranking.
  • The CEO has never bought common stock of VGGL, but is buying highl

There are a group of investors that look to capture dividends of high yield stocks. However, what they fail to realize sometimes is that trusts that terminate in the near future can be very overvalued. Investors can lose much more in share price depreciation than they receive with the dividend. This is the case with Great Northern Iron Ore (GNI). It’s a royalty trust that has its final dividend payout in March 2015 before it closes.