Melissa Davis, senior editor of The Street Sweeper, poses with celebrity stock picker Jim Cramer after a recent taping of his "Mad Money" television show. Davis worked as an investigative reporter for TheStreet.com, where Cramer serves as chairman, before assuming her current role at The Street Sweeper.
Eyes Wide Open: Second Sight Medical Products Becomes Another MDB Capital Special
by Sonya Colberg, Senior Investigative Reporter, 3/2/2015 10:09:09 AM
Second Sight Medical Products (EYES) creates a bionic eye for blind people.
It seems a cool business opportunity, at first glance, to implant electrodes in the eye to ultimately create images that the blind see as shapes or patterns.
The market, indeed, considers Second Sight worth $559 million. This stunning valuation exists despite the fact that the Sylmar, Calif. company made only $1.5 million in sales in all of 2013 – and it costs Second Sight close to $3 for every $1 the company makes.
So we took a critical look at Second Sight, the market and business plan. And we got quite an eye-full.
Here are some top reasons we believe Second Sight is fantastically overvalued and headed for a crushing reality check:
*Big investment firms yawn. So debt-riddled company grabs MDB by arm, hits Wall Street.
*Patient acceptance issues and FDA adverse event reports arise over Second Sight’s retinal prosthesis.
*Market tiny. Scale problems enormous. Next target minimum four years out.
*Stock lockup expiring; CEO gets break on stock bought with Second Sight cash.
*Look out ahead: Unless Second Sight plans nothing, more cash needed.
Second Sight’s key retinal prosthesis has three parts: an electronic device implanted and around the eye, a tiny video camera attached to eyeglasses, and a video processing unit the patient carries or wears.
While investors may find other viewpoints here, let’s look at the eye-popping details surrounding this company now trading at well over 100 times sales.
Sportsman's Warehouse: Too Many Bullets to Dodge?
by Melissa Davis, 2/23/2015 1:25:22 PM
Sportsman’s Warehouse (Nasdaq: SPWH) looks an awful lot like a sitting duck right now. Since its largest pure-play competitor has already shot off its mouth about the “wickedly competitive” nature of the recent holiday season ahead of the company’s fourth-quarter report, SPWH must feel like it’s treading water with the equivalent of a neon target on its back.
Unless SPWH somehow managed to dodge a relentless slew of bullets over the holidays, in fact, the company has probably spent the past couple of months in serious pain. We should know for sure in a matter of weeks.
With rival Cabella’s (NYSE: CAB) slashing its prices in order to steal business away from the competition during the crucial holiday season, however, SPWH sure looks vulnerable to a devastating miss. Just listen to some of the noisy warning shots fired by CAB earlier this month, and imagine the fallout that SPWH likely suffered as a direct result.
“We felt like when we talked to you guys in October that it was going to be a promotional environment, and we felt pretty good about our November and December promotional cadence. (But) as we started getting into November, it became very clear that it sure felt like there was a lot less consumer disposable income. And retailers, mostly outside of our space, really started cranking up offers -- to the point that some were almost ridiculous – weeks ahead of Black Friday. We just felt like, to protect our franchise and to maybe be opportunistic and take share, we had to jump into the fight. And what that meant was it took more discounts, as the consumer was very promotionally minded in the quarter.”
“It was definitely a war for the customer’s dollar in November and December, (and) I don’t think we were unique in feeling the unbelievable pressures … It was a wickedly competitive environment. (So) we used our leadership position to get in the fight – which a lot of our competitors can’t. And that was kind of the story of the quarter.”
“While we didn’t feel great about the earnings impact, we definitely took it to people from a share standpoint … During the quarter, we were able to grow market share in almost all of our major merchandise categories. We are pleased with our ability to grow share during the quarter and further pleased we have seen this trend continue into the first quarter of 2015.”
“It’s a whole new world, with affiliate networks and mobile apps and comparison shopping engines and all of that stuff. And I don’t think the promotional environment in the fourth quarter of THIS year – unless the economy improves greatly – will be much less intense.”
JAMN Finally Spills the Beans -- And It's an Ugly Mess
by Janice Shell, 6/2/2011 10:32:51 AM
To be sure, the 10-K offered investors little reason to sing. For starters, the filing reveals, this once-hot “coffee company” sells no coffee of its own at all. JAMN relies on a supplier based in frigid Canada – far away from the tropical Jamaican home of its co-founder Rohan Marley – to provide the company with an actual product to sell to its customers instead.
Back in April of 2010, JAMN inked a “supply and toll agreement” with Canterbury Coffee of British Columbia that gave it access to some brew. According to that agreement, JAMN relies on Canterbury to fulfill every role – save a minor one – normally satisfied by a firm that classifies itself as a coffee company. Canterbury purchases the coffee beans. It roasts them. And it then packages them in bags supplied by JAMN – the company’s only real product – for sale to the public.
JAMN signed this deal more than a year ago, right before Shane Whittle – a notorious Vancouver stock promoter – officially resigned as CEO of the company. But the company never mentioned that agreement, seemingly material enough to warrant at least a quiet 8-K report, in a single regulatory filing until now.
Jammin Java (JAMN): Hot Stock ... Bitter Aftertaste?
by Janice Shell, 6/2/2011 10:30:25 AM
It’s time to wake up and smell the coffee! That’s exactly what Jammin Java (OTC: JAMN.OB), a heavily promotedcoffee company, and – for very different reasons – TheStreetSweeper would like investors to do.
Since the beginning of the year, JAMN has miraculously risen from the ashes of the “Grey Market” graveyard to become one of the liveliest – and richest – stocks in the entire microcap arena. JAMN has seen its stock shoot straight toward heaven, soaring from 55 cents to peak above $6 a share on massive daily volume, with its market value nowtopping $355 million despite the company’s limited resources and operating history. (As covered in more detail below, two of the Internet tout sheets pushing JAMN the hardest effectively vanished -- disabled by their Internet servers -- on the day the stock’s trading volume exploded past 20 million shares.)
CCME: Few Signs of Life at 'Healthy' Chinese Firm
by Roddy Boyd, 3/23/2011 9:30:34 AM
Also, and this cannot be understated, hanging out on a sidewalk in Fujian–the sidewalks double as parking spots when the streets, which appeared to have been designed in the Han Dynasty, fill up–was not a viable option. There was also the matter of the world-class headache the Financial Investigator was developing from Fuzhou’s diabolical smell, an epic conflation of poor sewage treatment, air pollution and the smell of cabbage that made getting the hell off Dongjie street a matter of vital importance.
The Financial Investigator and his traveling companion for the trip, an American investor with extensive experience in China, decided to head upstairs despite our interview with the CFO having been cancelled at the last minute (with no explanation given.) We thought a quick tour of the offices and meeting a few other executives might open our eyes to a few things.
Though the language barrier was a little steep with the young receptionist–when we asked for writing paper, she provided Kleenex–we were in short order shown to their conference room and told to wait. It did not escape notice that pride of place in the conference room belonged to a framed certificate of participation from the Fall 2010 Rodman & Renshaw conference, the World Cup for reverse merger companies and the pumpers and touts who peddle them.
Eventually chief operating officer James Yu came down and after spending 30 minutes trying to understand who we were, concluded that giving us a tour wouldn’t hurt. Soon enough, his colleague, Vinne Ye–the chairman’s assistant–came out and took us around.
It was most eye-opening.more...
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