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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 indicates what the stock is worth.

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 Fibrillation (AF), which accounts for over 90% of all heart ablations.

2.15M shares for shareholders just got registered to be sold, and the company needs to raise $10s of millions for their upcoming product launch.

Update: Follow-up report published on 6/4/19 on Seeking Alpha titled: BioSig: The Plot Thickens With Director Resignations, Insider Sales, And An FDA Letter.

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 are still in the pilot stage, unproven with few studies done.

SOLY’s biggest holder, Remeditex, has sold every significant position it has filed on, and we doubt SOLY will be an exception.

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 believe will help ESTA because studies show its implants have a lower number of adverse events.

The breast implant industry is growing, and the growth rate could increase on a new perception of safety from Motiva implants.

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 will sell its Orogrande Project, but we don’t believe that will ever happen.

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 Q418, but they do not address fundamental business flaws and increase CFMS risk exposure.

Strapped for cash and lacking market trust, CFMS was forced to collaborate with last resort financier, Lincoln Park Capital.

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 impractical, and we don’t believe the government will spend a significant amount of funds on them.

There has never been a cyber or terrorist attack on an electric grid in the US. Ocean mines have not been an issue since WWII.

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, does not change clinical practice. Other similar technologies have been flops.

In every 2018 quarter, TTOO’s unsustainable research revenue was higher than its much more important product revenue.

TTOO has $44M in debt, paying interest at an usurious 12.5% rate.

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 the dermal resurfacing – a red flag that it may have missed its endpoints.

An almost identical product to J-Plasma called Portrait PSR has been a commercial failure for dermal resurfacing. J-Plasma appears to be following the same path.

Apyx’s new CEO, Charlie Goodwin, was allegedly engaged in fraudulent sales activities at Olympus/Gyrus, which include submitting fake claims to Medicare and making illegal payments to physicians and hospitals.

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.

NBEV has burned through most of its recent cash raise from a non-core acquisition, we expect more near-term equity financings.

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 companies, but so far has shown little follow-through.

We have a price target on FSD of C$0.09 per share, which was its pre-RTO financing price less than a year ago.

Helius Medical is a reverse-merger, single-product, pre-revenue medical device company with a unique device that delivers stimulation to the tongue that is supposed to treat a type of brain injury.

Evidence suggests the device is likely a placebo, and positive patient results were from the intense physical therapy treatment, not the device.

The founders, which include Montel Williams and the former CEO who is now a fugitive, have a history of questionable marketing practices.

Here we provide BONUS information that isn’t included in the Seeking Alpha report.

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 new customers will be even harder for Orchids as competing ultra-premium tissue manufacturing facilities will begin production.

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 see near-term downside of 30-50%, longer-term, TRXC is very likely a zero.

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 profiting at shareholders’ expense.

Generation Next Franchise Brands (VEND) is run by promotional scammers that have been convicted of fraud.

Has two upcoming catalysts, one on July 2nd that we believe will take the stock down 30%-50% in the near term.

Zero institutional ownership, its retail shareholders are clueless.

Company is almost broke, and has negative shareholders equity.

The company’s sole product is not practical and has already been tried and commercially failed by a different company.

Only about 5% of the float is short.

Read our follow-up report with reported field research published on 9/20/18 on Seeking Alpha here.

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 departure and the permanent replacement with the CFO.

Viveve is now attempting to have other indications for the Viveve System that we do not believe will work, and expand to other products, but those sales have flopped.

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.

The company made a costly deal with Kathy Ireland just to use her brand name. She’s not an executive or director of the company.

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.

Capstone’s chance for profitability is Russia, but oil and gas needs to go up considerably for more remote O&G installations.

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.’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 dilutive financing with Hudson Bay Capital, a fund known for financing microcap, speculative companies that most funds would not invest.

Longfin’s company headquarters in New York City is a WeWork shared office space for fledgling entrepreneurs.

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-up studies, there was no independent verification party, no pre-specified endpoints, and it’s unlikely that a drug’s efficacy would take effect years later, after having no effect at one year.

Nymox switched from trying to get approval in the US to Europe, but recent events show Europe might actually be tougher to get approval.

8/15/18 Update: Events have occurred that confirm our bearish case on Nymox, read our updated report here on Seeking Alpha.


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.

Position Update: We remain short AMPE. On 3/12/18, we published a follow-up article on Seeking Alpha in regards to the CEO’s conference call on 3/7/18, where he backtracked from claims of partnership negotiations. See article here.

ClearSign’s green energy Duplex technology has been tested by refineries for many years but has resulted in very few adoptions.

Evidence suggests the Duplex technology sacrifices some production efficiency in order to decrease emissions, but oil and gas companies care about profits, not so much pollution control.

We interviewed the inventor of the Dupex Technology and he had some interesting insights about the company.

ClearSign’s 100% rally from Asia and Middle East expansion news is reversing as new locations likely won’t bring new success to an already failed technology.

With the Trump administration in power, the anti-pollution technology is not a hot sector right now.

Read our add-on article published on 1/17/18: An Engineer’s Physics report On How ClearSign’s Duplex Technology Is Inefficient

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 70%.

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.

Even if TransEnterix miraculously is able to make revenues of $100M in a year, it will still take a $30M+ net loss mainly because its gross margin is only 40%.

Our research overwhelmingly shows that the Senhance will not sell well in the US just like it has hardly sold any in Europe.

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 technology revolutionary, with a large addressable skin wound market, or is it ineffective or in a niche market? With sales and studies underway, the answers will come soon.

The company’s September preferred stock financings have price protection on the conversion price, which is akin to death-spiral financing and adds to our skepticism.

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 essential for profitability, and system designers are reluctant to purchase from a small, and sole, vendor.

At $5M per quarter cash burn, Everspin will need to do an equity raise sometime next year.

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 small net revenue and high expenses, we see 50%+ downside in the stock within a year, and likely an eventual delisting.

Ethema Health (GRST) has limited downside risk at an adjusted book value of $0.066, 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 a similar tear soon.

Management has the steps in place to fill up its facilities with patients and demonstrate superior treatment to its competition.

We have a $0.24 price target on GRST.

In the past month, Delcath has risen 1000%+ on promotional hype and no fundamental news.

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.

Delcath’s outstanding share count went from 39 million on February 10, 2017, to 374.4 million on June 5th, 2017, and likely even higher today.

Delcath is conducting clinical trials on its same technology that failed to be approved by the FDA in 2013.

Despite being a struggling company, Delcath’s gluttonous executives award themselves high salaries, fly first class, and are in a ritzy office located in midtown Manhattan.

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 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 dilution risk because the bond conversion price is far above the current share price.

PDL BioPharma has a book value of about $4.50, almost double the current share 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

Ominto has made what appears to be a non-arm’s length merger with a company that has a completely different business.

We estimate Ominto’s value to be $1-$2 per share, for an eventual 90% decline.

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, suggesting its ready to sell.

Matinas’s entire pipeline consists of two preclinical drugs that were acquired from Rutgers University in 2015 for $2.5M. One of them, MAT2203, had already failed with another biotech company.

Matinas has yet to present clinical efficacy data on its two drugs, yet its market cap is over $200M, we believe it should be below $100M.

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, 14% is 28GHz.

Verizon has the option to buy XO’s spectrum for only $200M, which the vast majority is 28GHz. XO has almost as much total spectrum as Straight Path in MHz-POP.

We believe Straight Path raises many red flags with its statements and actions.

Corrections Corp (CXW) stock has continually drifted lower and now is trading just above book value. A dividend reduction is already partially priced in and expected, so the play is to wait for it to happen and buy up shares on the corresponding dip.

Hillary Clinton’s statements about doing away with private prisons is primarily to gain votes as major changes won’t likely pass through Congress.

While some private prison business will likely be lost from the Bureau of Prisons (BOP), it only makes up 7% of CXW’s revenues. Its business with the rest of its government customers won’t be affected much, with most governments there will be no change.

The national debt is almost at $20 Trillion, a psychological number that will take the conversation in Washington away from expensive and unnecessary projects like investing in new public prisons.

It costs the government much less per prisoner to use private prisons than public prisons. This fact will further prevent Congress from voting on anti-private prison measures.

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 boom is good for the gaming industry.


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 black swan event, And Relypsa’s CEO, John Orwin’s previous company’s deadly drug.

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 here.

See our next day follow-up article about their fruitless hydrogen plant project here.

MannKind’s distribution partner, Sanofi, has given up on Afrezza, MNKD’s only product, after investing over $300 million in it.

MNKD executives seem to be moving over to their new collaborative partner, Receptor Life Sciences. Is this to transfer over some assets before bankruptcy?

MNKD was burning $25 million of cash per quarter and will burn even more now as it takes on all the marketing costs for Afrezza.

The bullish thesis that Sanofi was intentionally trying to sabotage Afrezza and make it fail doesn’t make logical sense.

The full report is published on Seeking Alpha here.

– 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 offer surgeons.

– The ALF-X has already been a commercial failure. It has been on the market since 2012 with the plan to take market share from Intuitive Surgical (ISRG). The ALF-X didn’t sell a single unit in 2013, 2014, or 2015. TRXC acquired the ALF-X for $25M in cash plus stock in late 2015 for the purpose to parade it in front of uninformed investors.

– The SurgiBot is an impractical surgical robot that TRXC has done enough for it to likely gain FDA 510(k) clearance. It will also likely be a commercial failure like the ALF-X and SPIDER.

– In TRXC sponsored studies of the SurgiBot, surgeons say it “has potential” but isn’t quite there yet.

– TRXC management knows its products aren’t very good, one indication of this is the lack of patents. TRXC has only one US patent for its SurgiBot. 

– Management aren’t robotics experts, but their competitors are.

– Johnson & Johnson has its own surgical robot company that will compete with TRXC.

– TRXC’s CFO, Joseph Slattery, former company was Trans1 which settled with the US Department Of Justice for $6M for medicare fraud.

– 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.

– 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 needs to sell at least 2,000 exoskeletons per year to break even. It will only sell about 70 in 2015.

– RWLK’s President and Founder resigned last month. He previously criticized their exoskeleton as being “too bulky”.

– Lack of scale will prevent RWLK from expanding to many other countries.

– 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 the US market with crude! Kuwait’s OPEC rep says the oil glut could last 5 years.

– EMES earnings call sounded pessimistic, but management spun some M&A false hope which propped up the stock price.

– The price action of EMES will likely mimic that of ZINC, which bounced off lows and quickly faded.

Note: on 11/15 we posted a follow-up report on EMES: Has the bear case gotten stronger?

–  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 on 10/1/15 wasn’t good.

–  Horsehead is in dire need of cash but can’t issue new debt, because its 2017 convertible bonds currently have a yield-to-maturity of 35%, way too high. Issuing equity will also be very hard in such an unfavorable commodities sector.

– We agree with Goldman Sachs that the Glencore production cuts are “not a reason to get bullish” on zinc, and zinc will give back its recent gains on the Glencore news.

– 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-111 + chemotherapy combo has a worse response rate than chemo treatments alone. Avastin +chemo for ovarian cancer showed a much better response rate than both the VB-111+chemo combo and chemo alone.

– VB-111 didn’t show any improvement of reduction in muellerian (ovarian cancer) tumors , so had a 0% objective response rate.

– VB-111 is also very toxic, causing many serious adverse events, and even causing a death in the small 14 patient trial.

– VB-111 is ineffective and toxic, and should not be used in any more trials, for any type of cancer.

– VB-111 was VBLT’s last drug, and it has nothing more in its pipeline. The company is worth its cash value or less.

– ICLD has risen over 150% since it closed at $1.52 on April 30th. Yet it has risen on PRs that weren’t really news, but were already known.

– The PRs that fueled this rally are 1: a slight increase in its backlog, and 2: an expected modification of its cloud product.

– ICLD’s earnings report and upcoming equity raise are catalysts that will put it back under $2 per share, as the company still has the same unprofitable business.

– It was discovered by Reuters on March 27th that Builders FirstSource (BLDR) was in talks to acquire ProBuild for approximately $1.5B.

– On that news, the stock only moved about 10% from the low $6s to the high $6s.

– It’s possible that major holders didn’t value the merger very highly, otherwise, they’d have bid the stock up higher before the merger happened.

– On April 13th, BLDR announced the buyout of ProBuild, for $1.63B, and the stock has almost doubled in two days.

– Could it be that the runup is overdone on expected news, or did the market think the buyout wasn’t going to happen?

– 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 industry. All Ballard will have as customers are buses, stationary power, and forklifts, which don’t provide enough revenues for Ballard to be profitable.

– Signs indicate that BLDP will report missed earnings and/or guide down in its earnings report on 2/25/15.

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 expected. Aeropostale said the holiday quarter same-store sales fell 9% after a 15% decrease a year earlier. Analysts surveyed by Retail Metrics were looking for an 8.8% decline.

3. They have hired a CFO replacement, David Dick, who was the former CFO of bankrupt Delia’s, another teenage clothing retailer like ARO. This is a sign the company is getting ready for bankruptcy.

4. Once a certain style goes out of fashion, it doesn’t go back. Aeropostale will likely be the next in a line of bankrupt fashion clothing retailers.

– Before today (1/30/15), Global Resources (GURE), a likely Chinese fraud, was trading at around half of net cash since September, 2014.

– Glaucus Research has reported that GURE is a fraud, and worth 0.

– Today, GURE flew as much as 140% as it announced that it found natural gas underneath its oil well, but not how much.We don’t know if there is any natural gas in GURE’s well from what’s said in the PR.

– It even says in the PR: “Gulf does not know,” Mr. Liu added, “if this project will be commercially viable.”

– 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 findings of Sleeping Beauty and risk ZIOP and XON falling as a result.

– MDA’s engaging in this questionable deal likely means Sleeping Beauty will turn out to be an ineffective therapy.

– XON and ZIOP will likely do an equity raise ASAP while the hype is still fresh.

– 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.

– 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 highly dilutive preferreds and debt. He is, however, buying common stock of his other company, SFX Entertainment (SFXE).

– VGGL common stock will eventually reach zero.

– Vimicro’s (NASDAQ:VIMC) shares have gone up on the surveillance video hype, not fundamentals, and will inevitably crash down 50% to the $4-$5 range where it was one month ago.

– VIMC’s management has been on a promotional campaign for the stock, while aggressively selling their shares.

– Vimicro’s (VIMC) SVAC video coding standard isn’t new, it hasn’t caught on in China, and likely never will.H.264 video coding cameras are the mainstream in China, and worldwide, and that won’t change anytime soon.

– VIMC’s surveillance camera sales are entirely dependent on its Chairman’s political connections, something too fragile to count on in China’s ongoing intense anti-corruption campaign.