BearCaution

EROS Eros: New Receivables Accounting Red Flags

Today we intend to provide support for longstanding questions posed by short sellers relating to Eros’s potentially misleading accounts receivables. Eros has consistently maintained a large uncollected accounts receivables balance which has indicated at the very least that the company has unusual difficulty in collecting its revenue. At worst, the balance could be indicative of illegitimate revenue transactions or ‘round tripping,’ a means of boosting the operating metrics of a company without ultimately providing any real economic benefit.

PGLC PolarityTE: Investors Beware

We believe PolarityTE is merely the latest iteration in a series of failed story stocks, and that common shareholders are exposed to severe risks.

OPK OPKO Health: A House Of Cards Tumbling In The Dark

Opko has dropped approximately 25% since its recent quarterly report issued last Wednesday after it missed estimates on both revenue and earnings. In addition to the continued disappointing sales in the company’s FDA-approved product Rayaldee, the diagnostics division also saw a significant drop in revenue. We believe the recent quarter is merely the beginning of a series of continuing problems at the company.

RIOT Riot Blockchain: Sudden Business Pivot, Suspicious Acquisitions, Questionable Special Dividend

-Riot made a dramatic pivot from a “life science tools” business to a blockchain company mere months ago. -The company paid approximately $12 million for a two-week-old crypo-mining entity that owned only about $1.9 million in crypto mining assets. A second acquisition raises additional red flags. -Riot depleted an estimated 63% of company cash through a special dividend that appears to have disproportionately advantaged insiders. -Regardless of one’s views on blockchain technology, we believe Riot is a name that should be avoided.

MARA Marathon Patent Group: Bright Red Flags With This Newfangled ‘Blockchain’ Play

Marathon recently announced an agreement for the acquisition of Global Bit Ventures Inc. that will leave prior common shareholders with just 19% of the company. GBV was an entity set up only in August of this year and appears to have an undisclosed security interest with the former CFO, EVP and Secretary of Marathon. Marathon has multiple concerning parallels to Riot Blockchain, which recently engineered a similarly dubious pivot to the “blockchain.” BDO resigned as auditor November 27. Per the filing “the resignation of BDO was not recommended by the Company’s audit committee.” We are urging strong caution to investors in Marathon regardless of one’s views on blockchain technology.

CSSE Chicken Soup For the Soul Entertainment Is A Toxic Mess

A charity that the CEO advises accounted for approximately 46% of 2016 revenue and 95% of 2015 revenue through “sponsorship” of the public entity’s television programs. The charity was created in 2015, mere months after the creation of CSSE itself. The company later “donated” shares back to the charity. We have concerns about this relationship. The company reported a change in accounting methodology the day of an announced acquisition, positioning it to record a dubious $22.2 million paper “gain on bargain purchase” from the deal. CSSE is bizarrely structured as a subsidiary of a subsidiary and pays numerous fees to its affiliates. Public investors receive no proceeds from the popular book series. The CEO of CSSE was formerly CEO of Winstar, a public company that declared bankruptcy amidst allegations of revenue falsification and accounting improprieties.

CRIUF Crius Energy Trust: An Unsustainable Collision Course

Crius’s non-IFRS “Payout Ratio” includes multiple questionable adjustments which have given investors a false sense of security. We think Crius is on the precipice of failure. Crius is liquidity constrained with only $24.3m in cash as of September 30th. A new preliminary legal settlement of up to $18.5m will deplete much of its remaining cash. Credit lines are similarly stretched. Crius had $104.6m of debt as of quarter-end with current estimated remaining available credit of only $25.2m. The Company is borrowing at rates as high as 9.5% while paying out dividends at ~9.3%. Current dividend payout rates imply an unrealistic C$47.7m annual payout. Crius’s early backers and potentially current key holders include individuals affiliated with hedge fund Platinum Partners, whose executives were indicted for operating “like a Ponzi Scheme,” according to federal prosecutors.

APHA Could Rampant Red Flags Drown Aphria’s Proposed Nuuvera Acquisition?

We see multiple red flags with Aphria’s proposed purchase of Nuuvera, a company that was incorporated in January ’17 and had revenue of only ~$30k from inception to September ’17. The self-described “architect” of the Aphria/Nuuvera deal, Andy DeFrancesco, has a questionable history, including close links to controversial financiers such as Barry Honig. Despite being a supposed Aphria advisor, a document dated less than a week prior to Nuuvera’s creation shows DeFrancesco took a loan from Nuuvera’s Chairman & largest shareholder. Nuuvera appears to have few substantive assets and has been heavily promoted, including announcements such as a “blockchain” partnership with a company run by one of its own directors. We believe the Nuuvera acquisition would represent a near total destruction of Aphria value. Furthermore, we believe the deal raises questions about Aphria’s aggressive deal-making spree in general.

PLSE Pulse Biosciences: Failed FDA Clearance, New SEC Investigation, And An Uncertain Path Forward

Pulse failed to achieve an FDA 510(k) clearance which it had previously described as a “foundation for future clearances”. The current direction of the company seems highly uncertain. The company and several directors have been subpoenaed as part a newly disclosed SEC investigation into potential insider trading around a company news release. Any future avenues are likely to be capital-intensive. Per the 10-K, “…we plan to raise additional capital in the future”. Bottom line: Pulse is focused on a technology that doesn’t seem to work well. Limited oncological studies show poor to mixed results. Aesthetic applications thus far have insignificant potential. We think Pulse is stuck in a precarious position, and the current stock price in no way reflects the risks, capital needs, and the looming regulatory overhang facing the company.

INPX Inpixon: If This Sketchy Deal Is Legal The Public Markets May Be In Deep Trouble

During the height of “blockchain mania” Inpixon issued a press release announcing that it would leverage the blockchain. The price and volume predictably surged on the news. The company shared the press release with multiple investors in advance. The investors bought substantial stakes and then exited their positions into the spike that followed the news release. The stock has dropped about 95% in the ensuing months, eviscerating many who bought into the announcement. The kicker: The whole scenario may be entirely legal due to a nuance with how the information was shared.

GNPX We Believe Genprex Is A Disaster In The Making

Genprex was founded by a team that led Introgen, one of the more notable biotech catastrophes that declared bankruptcy amidst allegations of repeatedly misleading investors. Genprex’s product candidate is based on IP that was abandoned in Introgen’s bankruptcy because it “provide[d] no value to the debtors and [was] of no interest to the potential purchasers”. The product candidate looks to already be in trouble. The company’s Phase II trial has been suspended since April 2016. Genprex’s underwriter, Network 1 Financial, has led or participated in the underwritings of recent disasters such as LongFin, Long Blockchain, Adomani, and CIFS among others. Texas-based Genprex uses a small Boca Raton, Florida-based auditor and has been heavily promoted on penny stock websites and newsletters. We believe Genprex is a zero in the making.

AMEH Apollo Medical: Look Out Below – Russell’s Latest Float Calculation Screw-Up

FTSE/Russell recently added ApolloMed to its indices but erred in its calculation of float, forcing index funds to buy a disproportionate number of shares; roughly one-third of the actual float. The error and subsequent forced index buying caused shares to spike 50% on 114x normal volume on the day prior to index inclusion. Russell realized its mistake and has slated a reduction of ApolloMed’s index shares by ~86.5% for 9/21, which should force the sale of roughly 1.7 million shares. With an average daily volume of only 130,000 shares per day, we expect the forced sales to crush the stock by the effective date. ApolloMed has complex financials due to several consolidated VIEs. After untangling the web, we believe fair value is $5.80/share, suggesting a ~60% downside scenario on a fundamental basis alone.

LTS Ladenburg: Near-Term Headwinds And Unsustainable Balance Sheet Engineering

The SEC recently leveled allegations of securities fraud against Ladenburg’s Chairman and largest holder, Phil Frost, who owns ~34% of Ladenburg’s common equity. The company was struggling before the recent news. Ladenburg has regularly generated net losses to common holders and its balance sheet has become increasingly leveraged. When factoring in Ladenburg’s preferred stock – with a liquidation claim of $425 million ahead of the common – the balance sheet is already in deeply negative equity territory for common holders. Ladenburg has been issuing more debt and more preferred stock to pay out hefty dividends and to support common stock buybacks. This dynamic never ends well. The controversy is likely to lead to further fundamental deterioration; financial firms are sensitive to reputational risks. Plus, the worst may not be over; signs point toward possible criminal charges.

GNW Genworth: We See Almost No Chance Of Regulatory Approval. This Deal Would Be A Disaster For Policyholders

Genworth’s proposed acquirer, China Oceanwide, looks to be in the midst of a deep liquidity crunch. Following multiple FOIA requests, we were able to locate audits for the opaque Chinese conglomerate that show consistently negative cash flow and debt levels spiking to clearly unsustainable levels. We see almost no chance of regulators approving this deal. Doing so would hand control of Genworth’s assets to a faltering entity in a jurisdiction with limited recourse. A deep dive into Genworth’s insurance carriers show that the company looks starkly under-reserved. Our analysis indicates that Genworth’s LTC exposure is under-reserved by at least $9.9 billion. Overall we see this deal failing followed by an unwinding of Genworth. We’ve taken a significant short position in Genworth’s equity.

YRIV Yangtze River Port & Logistics: Total Zero. On-the-Ground Research Shows Assets Appear to be Largely Fabricated

We are of the strong opinion that Yangtze River Port & Logistics is a scheme run by its Chairman & controlling shareholder to siphon money away from U.S. public markets. Based on our findings we think YRIV is a total zero.

SKYS Sky Solar: Court Records Show That Lender Already Withdrew Buyout Proposal But Retail Investors Don’t Seem To Realize It Yet

The company’s financial state was weak prior to the new $121m liability and the recent note default. SKYS has had 3 CFOs within the span of 6 months. We expect the stock to dive as retail investors realize what’s actually going on. SKYS looks to be approaching insolvency and we do not anticipate the equity will survive.

PRED Predictive Technology: 95%+ Downside on CEO and Former Chairman’s Past Securities Fraud Allegations, Acquisitions That Reek of Insider Self-Dealing and Dubious “Miracle Cure” Sales Tactics

We believe there is 80% downside to Predictive’s shares purely on valuation alone and 95%+ downside given the issues we have uncovered.

DVA DaVita is Secretly Trying to Defend its Charity Scheme with a Lobbying Scheme

We believe DaVita to be a corrupt healthcare organization whose historical success has relied largely on gouging the healthcare system.

BE Bloom Energy: A “Clean” Energy Darling Wilting to its Demise

We believe that Bloom Energy, once touted as the prospective “holy grail” of clean energy, is instead likely to wind up in the history books alongside failed companies like Theranos or Solyndra. Contrary to myths about Bloom, our research indicates that Bloom’s technology is not sustainable, clean, green, or remotely profitable. We uncovered an estimated $2.2 billion in undisclosed servicing liabilities that the market has missed, even in its most recent re-valuation of Bloom shares. These issues have already begun to surface and we expect they will accelerate. Bloom’s tricky accounting allows it to mask servicing costs and shift write-downs to other periods, thereby avoiding recognizing major recent additional losses. We believe that large debt maturities in 2020 and 2021, amounting to nearly $520 million, make Bloom Energy an obvious bankruptcy candidate.

SDC SmileDirectClub: Moving Fast and Breaking Things in People’s Mouths – 85% Downside

We believe SmileDirectClub will wind up as a case study in why it’s a bad idea to invest in a company that attempts to fit a complex, dangerous medical process onto a low-cost, high volume assembly line. We see downside of 70% purely on a valuation basis, and downside of 85% given the above headwinds. We have a one-year price target of $2.

OPRA Opera: Phantom of the Turnaround – 70% Downside

We think Opera collapses on its own worsening financials, with that timeline accelerating significantly if Google bans its lending apps or if its Chairman/CEO continues to draw cash out of the business through questionable related-party deals.

NEXCF NexTech AR: Relentless Stock Promotion, Sketchy Related Party Transactions and a Vaporware Product—Price Target: $0

We identified multiple brazen related party transactions, including one where the CEO and COO acquired a business personally, only to turn around and sell it to the public company months later, likely netting millions at the expense of shareholders. The company has a significant share lockup coming due next month from a recent toxic financing and has displayed multiple other red flags, such as recent CFO and COO departures. We think NexTech has been thoroughly “pumped”. We now expect a “dump”. We believe its equity is worthless.

PCLO PharmaCielo: 100% Downside on Co-Founder’s History of Securities Fraud Allegations, Numerous Undisclosed Related Party Transactions and Operational Failures

PharmaCielo has property, greenhouses, licenses, and some residual cash. But with essentially no revenue, continued cash burn, and management’s track record of self-enrichment and the co-founder/former CEO’s history of securities fraud charges, we believe PharmaCielo ends up as a total loss for investors.

HFFG HF Foods: 90%+ Downside on Massive Undisclosed Related-Party Transactions, Shareholder Cash Spent on Exotic Supercars & Outrageous Fundamental Valuation

We believe HF and its insiders are masking the true number of shares held by its affiliates. Once made clear to FTSE/Russell, we expect the recent forced index buying in HF will reverse and become forced selling. We see 90%+ downside for HF’s shares based on outrageously priced fundamentals, insider deals that appear to be hollowing out the company, and potential forced selling by FTSE/Russell.

WORX SCWorx: Evidence Points to its Massive COVID-19 Test Deal Being Completely Bogus, Price Target Back to $2.25 Or Lower

We believe the Covid-19 hype surrounding SCWorx is completely bogus and we predict shares will soon return to the $2.25 price level they were at prior to the hype. We also think shares risk being halted and ultimately could move far lower than $2.25 if/when regulators investigate the company’s potentially nefarious business practices at a time when our country and its citizens are arguably at their most vulnerable. We’re offended by how egregious this appears, not only as investors, but as Americans.

NEWP New Pacific Metals: Bolivia Looks Friendly Until A Coup Forces Your Friends to Flee to Mexico– 90%+ Downside

Our base case is that New Pacific has its concessions and agreements with the state revoked entirely or negotiated on far less favorable terms. Even if the company retains its concessions (which we don’t think it will) New Pacific shares trade at vastly inflated levels, representing 85% downside on a purely fundamental basis. All told, we see 90%+ downside for shares of New Pacific and 25%-45% downside for shares of related Silvercorp, which owns almost a 29% stake in the company.

1636 China Metal Resources Utilization: 100% Downside to This Zombie Company

We believe that China Metal Resources Utilization (“CMRU”) is nothing more than a ‘zombie company’; an entity technically alive, but under such severe financial distress and laden with so many red flags, that insolvency seems inevitable. We believe CMRU’s Chairman/CEO may have reached the same conclusion: he has disclosed agreements indicating his intention to offload his entire personal stake in the company, which currently represents about 29.65% of the company’s outstanding shares.

SRNE Sorrento’s Pandemic Profiteering: Experts and Former Employees Speak Out on Sensational Claims of Covid-19 Cure

We see significant downside from these levels and believe the company is already in the process of severely diluting its new unsuspecting investor base. We believe regulators should closely scrutinize the company’s actions over the last several weeks.

GNUS A Bagholder’s Guide to Why We Think Genius Brands Will Be a $1.50 Stock Within a Month

Stock runs are always fueled by exciting stories, but the ending is almost always written in the boring fine print. We think Genius Brands will crash spectacularly due to obvious market mechanics that its retail investor base are likely unfamiliar with – even in the frothiest of markets.

WINS Losing With WINS: NASDAQ’s Latest Disgrace Has No Financials, An Insolvent Parent Entity and Is Embroiled in What Appears to Be an Obvious Pump and Dump

Wins has a history of alleged stock manipulation, including a mysterious 4,555% spike in 2017 that gave the firm a temporary $9 billion market cap. That circus led to the company’s ejection from the Russell index, a shareholder lawsuit and a NASDAQ delisting threat. Wins strikes us as a company worth $0 trading at a current market cap of $700 million ($34 price as of this writing) due to its recent irregular trading spike. Frankly, we think the company is in the midst of one last pump and dump before it disappears for good. In our view, Wins never should have remained listed after its first fiasco in 2017. We encourage NASDAQ to implement stronger policies that prevent companies that repeatedly exhibit glaring red flags from trading on a premier national exchange.

IDEX Ideanomics Walks Back 1m Sq Ft Claims Today; Our Visit To IDEX’s “MEG” Facility Shows Zero Company Presence

In short, we think the company has fabricated its supposed sales center, and altered images in its press releases to make it seem that it operates the facility. We continue to believe, as we stated yesterday, that the company is engaged in flagrant securities fraud and that it’s stock will wind up in the pennies or halted by regulators.

JCOM J2 Global: Troubling Related Party Transactions, Looming Impairments And A Suspicious History Of Insider Enrichment Spanning Decades

COVID-19 has now officially halted the company’s acquisition model. We feel this is a crucial opportunity for the company’s auditors to examine all of the transactions we lay out in this report (including all acquisitions made under the former VP of Corporate Development) and take necessary measures to prevent what we believe to be additional misuse of shareholder capital going forward.

FD Facedrive: A $1.4b ESG Stock Promotion with a Hollow Core Business, Flailing Business Pivots and Multi-Million Dollar Payments to an Opaque BVI Entity; 95% Downside

We believe this “story” stock is heading toward a hard repricing, as we see de minimis overall value in the company’s operations. Our 1-year price target is CAD $0.70, representing 95% downside

GRWG GrowGeneration: This Latest Euphoric Retail Stock Has The Brightest Management Red Flags We’ve Ever Seen—70%+ Downside

Purely on a fundamental/valuation basis, without the alarming warning signs above, we see 60% downside to shares of the company. The company trades at an extremely rich 60.5x adjusted estimated 2020 EBITDA and over 6.1x estimated 2020 sales. Management seems to agree with our valuation assessment. The company completed a financing at $5.60 per share, reflecting a 70% discount to current levels. Insiders and key holders, including the CEO, President & Co-Founder, and private equity backers have sold stock aggressively this year in the $4-$8 range.

NKLA Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America

We think Trevor Milton, through dozens of outright lies, was able to form partnerships with some of the largest legacy auto companies in the world in their desperation to catch up to Tesla’s EV leadership status. Trevor has ensured he is not going down with the ship. He cashed out $70 million around the IPO and amended his share lock-up from 1-year to 180 days. If he is fired, his equity awards immediately vest and he is entitled to collect $20 million over two years. Milton has laid the groundwork to extract hundreds of millions from Nikola years before ever delivering on his promises. Every now and then a story comes around that exposes how little the “experts” really know. Theranos inked partnerships with Walgreens, Safeway, and Cleveland Clinic and staffed its board with luminaries. We think Nikola’s partners did not do their homework.

KNDI Kandi: How This China-Based NASDAQ-Listed Company Used Fake Sales, EV Hype to Nab $160 Million From U.S. Investors

Today we reveal what we believe to be a brazen scheme by China-based, NASDAQ-listed Kandi Technologies Group to falsify revenue using fake sales to undisclosed affiliates. Our investigation included extensive on-the-ground inspection at Kandi’s factories and customer locations in China, interviews with over a dozen former employees and business partners, and review of numerous litigation documents and international public records. We unmasked Kandi’s “unnamed” top customers and found that almost 64% of Kandi’s last twelve months (LTM) sales have been to undisclosed related parties.

LOOP Loop’s “Independent Review” Of Its Technology Falls Flat

Our original report asked management 15 questions, ranging from why Loop’s initial funding was facilitated through a convicted stock felon to why the company’s two top scientists were in their 20s with no post-graduate education in sciences. Those questions all remain unanswered. It appears the market may have already started to figure out what we reveal in this report, as Loop stock has fallen precipitously since the company released the “independent review”. We remain short Loop’s stock with a price target of $0 and continue to strongly believe that Loop’s claimed technological advancements do not exist.

CLOV Clover Health: How the “King of SPACs” Lured Retail Investors Into a Broken Business Facing an Active, Undisclosed DOJ Investigation

Today, we reveal how Clover Health and its Wall Street celebrity promoter, Chamath Palihapitiya, misled investors about critical aspects of Clover’s business in the run-up to the company’s SPAC go-public transaction last month. Our investigation into Clover Health has spanned almost 4 months and has included more than a dozen interviews with former employees, competitors, and industry experts, dozens of calls to doctor’s offices, and a review of thousands of pages of government reports, insurance filings, regulatory filings, and company marketing materials.

ORA Ormat: Dirty Dealings in ‘Clean’ Energy

Ormat’s Honduran plant operates in Copan, known as drug cartel territory. A Honduran congressman told us “You can’t operate in Copan without paying the cartels, the gangs or corrupt politicians – and sometimes all three.” We found that Ormat’s contractor in Honduras was raided by authorities on suspicion of being a front company for drug cartels. Its owners are in jail awaiting trial. Ormat’s culture of corruption isn’t limited to international markets. In the U.S., Ormat settled DoJ fraud charges after whistleblowers alleged it made fraudulent misrepresentations in order to secure government clean energy loans. Corruption is a double edged-sword. Just as a company can win lucrative contracts through illicit means, those contracts can be pulled away once exposed. We expect a very bumpy road ahead for Ormat.

RIDE The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, And A Prototype Inferno

In January 2021, Lordstown’s first street road test resulted in the vehicle bursting into flames 10 minutes into the test drive. We share copies of the 911 call and a police report we received through FOIA requests. Lordstown only went public in October 2020, but in that brief time, executives and directors have unloaded ~$28 million in stock. We think it bodes poorly when executives unload stock in a company with no actual product that claims to be on the cusp of mass-production. We think investors, workers, and the local community deserve much more transparency on what is going on at Lordstown. We ask 21 questions at the end of our piece that we think the company should answer.

EBON Ebang: Yet Another Crypto “China Hustle” Absconding With U.S. Investor Cash

Ebang is a China-based crypto company that has raised ~$374 million from U.S. investors in 4 offerings since going public in June 2020. While the company represented that it would use the majority of its numerous capital proceeds to develop its business operations, our research discovered it instead directed much of the cash out of the company through a series of opaque deals with insiders and questionable counterparties.

PCYO PureCycle: The Latest Zero-Revenue ESG SPAC Charade, Sponsored By The Worst Of Wall Street

In our opinion, PureCycle represents the worst qualities of the SPAC boom; another quintessential example of how executives and SPAC sponsors enrich themselves while hoisting unproven technology and ridiculous financial projections onto the public markets, leaving retail investors to face the ultimate consequences.

HMBL HUMBL: Illusions of Grandeur, Collapsing International Deals, And Lurking Dilution

HUMBL is an early-stage fintech company with a $5.6 billion fully diluted market cap that recently reverse-merged onto the OTC. It ended its most recent quarter with ~$156,000 in revenue and currently has ~$4.5 million in cash. It had zero revenue in 2020. The company aspires to be an Amazon or Alipay, imagining that it will facilitate payments to billions of people around the world by transcending borders and lowering costs using blockchain technology. Our research shows the company has failed to deliver on even the most basic aspects of its business plan, including features it claimed were completed months ago. Six months after going public, its users can’t send or receive money on its “payment” app, let alone engage in low cost, cross-border crypto currency transactions.

DKNG DraftKings: A $21 Billion SPAC Betting It Can Hide Its Black Market Operations

We think DraftKings has systematically skirted the law and taken elaborate steps to obfuscate its black market operations. These violations appear to be continuing to this day, all while insiders aggressively cash out amidst the market froth.

TGLS Tecnoglass: Cocaine Cartel Connections, Undisclosed Family Deals, And Accounting Irregularities All In One Nasdaq SPAC

Tecnoglass is a Colombia-based producer of glass for residential and commercial buildings founded in 1984 by two brothers, Jose Daes and Christian Daes, who currently both serve as directors and CEO & COO, respectively. The stock has surged ~390% this year on record results fueled by a pandemic real estate boom in Florida, the company’s key market. Recently, U.S. census data shows that new residential building permits have peaked, signaling a fundamental headwind going forward.

SLI Standard Lithium: All The Hallmarks of A Made-In-Vancouver Stock Promotion Scheme Fueled By EV Lithium Hype

Standard Lithium is a zero-revenue mining company that uplisted to the NYSE in July 2021 with a fantastic-sounding story of being a first mover in direct-lithium-extraction (DLE), a technology that aims to revolutionize lithium mining. Standard’s CEO Robert Mintak has been involved with at least 9 publicly traded companies. On average, shares of these companies have fallen ~97%. Of the 9 companies, 5 have been delisted, several have faced regulatory scrutiny, none operate profitably, and at least 8 used paid stock promotion.

NTRA Natera: Pioneers In Deceptive Medical Billing

Natera has employed a dizzying array of billing deceptions to fuel sales growth. Despite it all, the company is starkly unprofitable. We expect its “growth” and prospects will rapidly fizzle as payors and patients wise up to its practices.

N/A J&J Purchasing: When It Sounds Too Good To Be True

This firm, J&J Purchasing, has pitched potential clients on an investment offering 50% annualized returns with virtually zero risk. It claimed, at one point, to have raised $400 million from over 1,000 investors since 2016. Through the course of our research, we submitted our findings to regulators through the SEC’s tip program. We recently also shared our work with reporters at the Wall Street Journal. Our work has included in-house research, extensive document review, as well as in-person meetings and recorded correspondence with the firm’s principals and marketers under the guise of becoming a potential client.

MULN Mullen Automotive: Yet Another Fast Talking EV Hustle

Mullen’s Founder, Chairman and CEO, David Michery led 5 failed penny stock companies prior to Mullen. Two had their securities registrations revoked by the SEC, two terminated their securities registrations, and the last one merged with a speculative gold mining company. Michery merged one of his prior entities as part of a 3-way deal with an individual who was later charged with criminal securities fraud and sentenced to 30 years in prison. Prosecutors alleged that the merger deal involving Michery’s prior company was part of the scheme. Michery lists no educational background in his Mullen biography. Contrary to other top electric vehicle executives that have engineering and manufacturing backgrounds, Michery’s past work experience was largely in the entertainment industry.

SGLY Singularity Future Technology: This Nasdaq-Listed Company’s CEO Is A Fugitive, On The Run For Allegedly Operating A Massive Ponzi Scheme

In April 2022, Singularity announced an up to $250 million partnership with a 10 GW+ capacity U.S. power producer called Golden Mainland. Golden Mainland’s website was registered just 1 day before the Singularity press release, and the entity was incorporated just 6 months earlier. We found no indication that the prospective partner owned any energy assets, much less 10 GW+ worth. We also found no evidence that Golden Mainland has a headquarters or any employees aside from its founder, who used a Gmail address on the SEC filing detailing the supposed $250 million deal. We believe Golden Mainland is a blatant fabrication. We think Singularity is an extremely obvious total scam, with little to no actual business operations. Given that CEO Yang Jie helped usher in the implosion of another Nasdaq-listed company (China Commercial Credit), along with a massive Ponzi scheme in China, we expect he will continue until he is stopped. We have shared our findings with Nasdaq and authorities.

TWTR Musk Holds All The Cards: We See a Significant Risk That The Twitter Deal Gets Repriced Lower

As a result of these developments, we believe that if Elon Musk’s bid for Twitter disappeared tomorrow, Twitter’s equity would fall by 50% from current levels. Consequently, we see a significant risk that the deal gets repriced lower

ENOB Miracle Cures and Murder For Hire: How A Spoon-Bending Turkish Magician Built A $600 Million Nasdaq-Listed Scam Based On A Lifetime Of Lies

We think Gumrukcu is a lifelong con artist, who has catapulted himself from being a small-town Turkish magician to leading a publicly-traded, Nasdaq-listed medical research enterprise and fooling many along the way. With its founder and main source of scientific discoveries jailed on murder-for-hire allegations, this cash-burning company without peer-reviewed research and no genuine clinical prospects is now a “catch me if you can” story that we believe has finally reached the end-phase.