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SCAM investment email and my reply


jawn619
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Thought id share something that i thought funny. I recently received this email and decided to reply back

 

Hello,

My name is Jordan Ring and I am with JDR Capital, a healthcare advisory firm. We are working with an emerging biotech company, Vycor Medical (OTC: VYCO), that I thought may be of interest to you.

 

Vycor is a commercial-stage medical device Company addressing large unmet needs in brain surgery and neurological disease, with minimally-invasive, FDA-cleared products.

 

Vycor has grown sales at a 5-year compounded rate of 52%, with margins averaging 85%. We believe the Company may reach profitability in 2015 and consequently see a sharp uptick in valuation.

 

Large device companies are increasingly interested in acquiring high margin, high growth products that can help offset the effect of Obama's medical excise tax on their low margin businesses. Vycor operates in segments with few to no competitors and continues to see unabated growth and adoption.

 

Vycor's growth has been driven by organic adoption, new domestic and global distributor networks and may be further buoyed by product expansion and new product launches anticipated before year-end 2014.

I would like to schedule a short phone call with you to go over the VYCO investment proposition in a bit more detail, and Company management is also available upon request. Which date and time works best for you?

 

Best,

Jordan

 

Hey Jordan,

 

VYCO gross margins indeed seem very impressive and their products revolutionary! I had a couple questions that I thought you might help clear up.

 

1. On the 10qs it seems like there are huge general and administrative expenses. More than 10x the cost of goods sold and r&d combined! I understand though since medical devices companies usually have huge general administrative expenses. Paper and pencils don't come cheap anymore. Maybe the recent decline in oil will decrease costs?

2. It doesn't seem like VYCO generates any cash. But seems OK since VYCO is able to obtain 5 million of capital from issuing common stock. I relish an opportunity to be a shareholder in a company that does not hesitate to dilute its stock. The more the better I always say.

3. Is this the pump or the dump portion of the scheme? It looks like VYCO Just recently doubled in price! While I do like strong stocks and people have told me that the trend is my friend, I don't want to chase a stock up 100%! So let me know which phase we're in because I have lots of other investment opportunities I have to weigh this against (a Nigerian prince needs help moving his wealth and I just won a foreign lottery!)

 

All joking aside, I've spent a lot of my time looking at 10-Qs and most of them look pretty pedestrian or not enough Margin of Safeties for me to make an investment. It's refreshing to see some that have some obvious big red flags. 

 

 

10-Q

http://www.sec.gov/Archives/edgar/data/1424768/000114544314001322/d31746.htm

 

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