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MDXG - MiMedx Group


Gregmal
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This is something I've had an eye on for quite a while and I feel the story has finally played out and the risk to reward here is now massively skewed to the upside.

 

I am not an expert on these type of companies. Zero is still definitely a possibility. This is a massively overcrowded short.

 

However, the one thing no short has been able counter, is that MDXG does have solid products that are overwhelmingly viewed favorably by doctors, employees, and even competitors.

 

Over the past month or so, the perfect storm of shoes dropping has occurred. Kicked out of smallcap index, delay of filings, delisting, and a poison pill to name a few. The company also seems to have completely cleaned house, and generally speaking, it's actions in no way reflect a company on the brink. I specifically believe that the past 2 weeks have brought out every forced seller possible, and now the shares even trade at a discount to Citron's $3 target.

 

All in all, this one is simple. The actions of the company, and the precedent set by regulators leads me to believe that MDXG's existence is not likely threatened. And if it survives, it is a multi bagger from here. This is a great spec. long...

 

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Opinion:

 

Promising field but IMO nowhere near lasting clinical applicability.

Investing profits from sentiment rebound is not excluded but the odds are stacked against the investor.

 

It's hard to evaluate precisely the odds of developing a product with sustainable moat in the short to mid term concerning their wound or surgical products but, for the injectable products for pain, I evaluate the odds at less than 1 in a million.

 

With all due respect and even if what is promoted appears to be sophisticated and vanguard, in my humble perspective it feels like:

Even if you are dealing with the Wright brothers here, I would guess that the eventual "successes" may be coming out of left field.

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Yes, this one has been quite interesting, for a long time. I've always thought the short case had more merit than the long case, however was never able to get a good response from any short piece about why their offerings where highly regarded and why even competitors typically saw them in a favorable fashion. I don't doubt there is/was fraud on some level.

 

If, as some have stated, we're dealing with bribes and channel stuffing, from years ago, done by employees who no longer work there, I mean thats not blowing them off the map.

 

So essentially where I am at, is that is should clearly have a SPECULATIVE AF disclaimer, but with the convergence of recent event, this IMO is where you take a shot at this thing.

 

Think about it for a second. The people truly behind the scenes just put in a poison pill at $6. If this is a fraud or ending up a doughnut, wouldn't they at least try to pass the hot potato or salvage something for shareholders? But instead they took a measure to assure the company wasnt going to get sold for a quick 20% premium, ~$7 a share. ALA Papa John's sub $50. Now at $2.5, with ZERO having changed, even at a 20% discount to the poison pill announcement, you have 100% upside.

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I would be really careful with this one.  I have been short, covered most of it recently but hold some remaining put positions.

 

The first thing to note is no one has any idea what the underlying revenue is and last 6 yrs of financials are being restated.  If you look at its comps OSIR and DSCI, they all started with roughly the same amount of revenue in 2013, MDXG/OSIR has $25mil, DSCI had $34mil.  MDXG grew revenues are 75% pa (!?!), OSIR, and DSCI at 35% and 11% respectively.  The amount of stuffing that may have occurred here could be enormous.  You will also note that OSIR ran into similar issues with its management team and growth slowed significantly.  If you apply OSIR growth rate of 35% to 2013 revs then Epifix revenues would be in the ~$120mil range.  Attached a 3x rev multiple (like OSIR) and keep MDXG's other line of biz flat at $60mil you get a value of ~$492mil, or $4.40 per share.  Certainly higher than current price but not that great.

 

You have to keep in mind that the previous CEO is fired for cause and having all his comp shares clawed back.  Usually that is only if criminal activity occurred.  The underlying sales number is anyone's guess.

 

Then you have the liabilities to think about.  The accounting restatement, especially given C-suite firings, over 6 years is going to be really expensive.  They also have a mountain of lawsuits from whistleblowers, hedge funds, equity holders etc.  There is also the cost of VA, DOJ investigations, SEC fines etc.  Going into all this the company only had $30mil of cash.  Even if equity value is positive, is it really greater than all these liabilities?  One counterpoint here, somehow the company has survived this long, so maybe it still is generating some cash, and that is a positive point.  However, their current CEO is from A&M a restructuring firm and he is paid hourly.

 

As for as the product.  It is really hard for me to know.  This company was growing sales really quickly, but not much cash.  This could indicate, and there is evidence to suggest that perhaps bribes were paid to increase sales.  No idea if this is true, but may explain why they grew sales at incredible rates relative to its peers.  This may also explain why their product is loved.

 

Having spoken to some dr friends they say that the evidence behind wound care like this is mixed.  There is a lot of hype, there is a need for better products, but it is not clear if these products work as well as advertised.  He also was surprised by the amount of sales as he thought the market was pretty small as this stuff is used for difficult wounds like diabetes etc.

 

If you attach peer growth rates and multiples you can make the argument that this stock is not that cheap.  If you consider the liabilities then you may say its is very expensive.  Since none of this is exactly clear I have covered because if I am wrong it could go up a lot.  On the poison pill, they may just be doing this to preserve NOL's if there were to file?  Just a guess.  I am not sure one can read into it too much, seems like a standard move any company with such advisors in control would do.  But I could be wrong.

 

My view is this could be interesting if they restructured.  That would cause an even bigger equity washout, and then any discount to the value of the underlying business could be very large.

 

The counter point is that DOJ/SEC/courts are very hesitant to force a company to fail.  Therefore they may lean on the light side on any fines/charges etc.  In that case the stock does go up, but perhaps not nearly as much as it may appear.

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I would be really careful with this one.  I have been short, covered most of it recently but hold some remaining put positions.

 

The first thing to note is no one has any idea what the underlying revenue is and last 6 yrs of financials are being restated.  If you look at its comps OSIR and DSCI, they all started with roughly the same amount of revenue in 2013, MDXG/OSIR has $25mil, DSCI had $34mil.  MDXG grew revenues are 75% pa (!?!), OSIR, and DSCI at 35% and 11% respectively.  The amount of stuffing that may have occurred here could be enormous.  You will also note that OSIR ran into similar issues with its management team and growth slowed significantly.  If you apply OSIR growth rate of 35% to 2013 revs then Epifix revenues would be in the ~$120mil range.  Attached a 3x rev multiple (like OSIR) and keep MDXG's other line of biz flat at $60mil you get a value of ~$492mil, or $4.40 per share.  Certainly higher than current price but not that great.

 

You have to keep in mind that the previous CEO is fired for cause and having all his comp shares clawed back.  Usually that is only if criminal activity occurred.  The underlying sales number is anyone's guess.

 

Then you have the liabilities to think about.  The accounting restatement, especially given C-suite firings, over 6 years is going to be really expensive.  They also have a mountain of lawsuits from whistleblowers, hedge funds, equity holders etc.  There is also the cost of VA, DOJ investigations, SEC fines etc.  Going into all this the company only had $30mil of cash.  Even if equity value is positive, is it really greater than all these liabilities?  One counterpoint here, somehow the company has survived this long, so maybe it still is generating some cash, and that is a positive point.  However, their current CEO is from A&M a restructuring firm and he is paid hourly.

 

As for as the product.  It is really hard for me to know.  This company was growing sales really quickly, but not much cash.  This could indicate, and there is evidence to suggest that perhaps bribes were paid to increase sales.  No idea if this is true, but may explain why they grew sales at incredible rates relative to its peers.  This may also explain why their product is loved.

 

Having spoken to some dr friends they say that the evidence behind wound care like this is mixed.  There is a lot of hype, there is a need for better products, but it is not clear if these products work as well as advertised.  He also was surprised by the amount of sales as he thought the market was pretty small as this stuff is used for difficult wounds like diabetes etc.

 

If you attach peer growth rates and multiples you can make the argument that this stock is not that cheap.  If you consider the liabilities then you may say its is very expensive.  Since none of this is exactly clear I have covered because if I am wrong it could go up a lot.  On the poison pill, they may just be doing this to preserve NOL's if there were to file?  Just a guess.  I am not sure one can read into it too much, seems like a standard move any company with such advisors in control would do.  But I could be wrong.

 

My view is this could be interesting if they restructured.  That would cause an even bigger equity washout, and then any discount to the value of the underlying business could be very large.

 

The counter point is that DOJ/SEC/courts are very hesitant to force a company to fail.  Therefore they may lean on the light side on any fines/charges etc.  In that case the stock does go up, but perhaps not nearly as much as it may appear.

 

This is an excellent, excellent summary of basically what's up. I interpret, and more or less speculate that the question marks/concerns you listed are revealed more favorably than the market expects, but its really just a moderately educated guess. Your reasons for covering the short are my reasons for going long here, more or less.

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I would be really careful with this one.  I have been short, covered most of it recently but hold some remaining put positions.

...

This is an excellent, excellent summary of basically what's up. I interpret, and more or less speculate that the question marks/concerns you listed are revealed more favorably than the market expects, but its really just a moderately educated guess. Your reasons for covering the short are my reasons for going long here, more or less.

Was planning only one input here but somehow find that this could be useful for perspective on the "product".

This is not about the depth of TBW's anaysis or the validity of Marc Cohodes' investigation which are shining lights on pretty significant red flags.

It's about the product itself.

 

Here's a hypothetical venture: Placentophagy or the consumption of placenta by women who just delivered it to the world

-Huge market potential

-Almost all non-human placental mammals ingest their placentae at parturition

-Could patent a recipe that could blend it into a smoothie even if raw preparations would be available

-The placenta contains an innumerable amount of difficult to pronounce chemicals with undefined but amazing potential

-Possibility of sponsored studies and inventive sales team

https://www.jognn.org/article/S0884-2175(15)00009-X/pdf

 

Placentae have a viscous texture and a disgusting look but what sticks with you is the smell. Unforgettable.

I may be wrong but can't you smell That smell? ® (Lynyrd Skynyrd, 1977)

There's the smell of Bad Blood and Henry Kissinger is not even on Board.

 

 

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Placental ECM has good potential, it's even being used for hair loss (google amniotic BioD).

However in the space of tissue engineering and biomaterials there is lots of competition and methods and hard to say who is the winner. Lots of claims. For example I know Cook mEdical makes some claim about some biological matrix and then I read some clinical study of those using it who say it just dissolves like putty. So got to be careful there.

I think placental ecm is a kind of semi-autologous ecm. VCEL makes a ecm with your own cells from your own blood. There are many ways to skin a cat and many products on the market just getting started. There are even semi-viscous UV activated biomaterials (eg Poltiss). So if you can pick the winners great, otherwise best to do some thinking.

Integra lifesciences (IART) also has a portfolio of placental ecm products when they acquired dermal sciences, but also other items in the portfolio. Personally I like the more diversified approach, just in case. Although I admit there are some small biotechs with better products. Some are private.

 

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No reliable financials since 2012, senior executives fired for cause with clawbacks pursued, surprise de-listing from NASDAQ for unknown reasons (after getting an extension until February 2019), accusations of bribery and fraud at the VA, poison pill adopted to preserve NOLs.....everything here points to an imminent bankruptcy filing.  If they don't file BK before the February scheduled timetable for de-listing, I'd be very surprised.

 

With a market cap still around $300 million, and still no idea how many shares are currently outstanding, or how much cash is in the bank, and the CEO being paid hourly from a restructuring firm with massive liability shields, and 6 years of financials to re-state, I really don't see much upside even if things go "better than expected". 

 

Talking about the technology and its potential are fine, but no one on this board should miss the risks here--everything points to this being a 0.  If the issues were going to be resolved, why would NASDAQ immediately de-list?  Why adopt a poison pill to preserve the NOLs?  In fact, if this wasn't going to 0, and there were any chance of solvency, why wouldn't the company be put on the block for sale?

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  • 2 weeks later...

Gregmal,

 

Was your trade here just that it was oversold and had to pop, and if it did pop it would be substantial given short interest? 

 

It is well known that even terminal companies can bounce numerous times, by more than 100%, on the path to 0.  While I know that, I never can bring myself to even attempt to trade it.  But power to you if you can.

 

The news from the company today was awful.  The auditor that was supposed to help the company restate the past 6 years quit, amongst 24% of the staff being fired, etc..  Honest question, How in the world does a company like this ever get out financials?    They have now had 2 of the big 4 quit.  They still have to review the past 6 years of financials.  Who is left to do that for them?  Who can accept that liability, knowing the mess you are getting into?  And finally, who knows if that can afford such an audit?  Really interesting to watch this all play out.

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https://mimedx.gcs-web.com/news-releases/news-release-details/mimedx-announces-resignation-outside-auditor

 

MARIETTA, Ga., Dec. 5, 2018 /PRNewswire/ -- MiMedx Group, Inc. (OTC PINK: MDXG), a leading developer and marketer of regenerative and therapeutic biologics, today announced that on December 4, 2018, Ernst & Young LLP informed the Company's Audit Committee that it has resigned from the engagement to audit the Company's financial statements for the years ended December 31, 2017 and 2018, effective immediately. Additional information about Ernst & Young LLP's resignation will be included in a Form 8-K to be filed with the SEC no later than December 11, 2018.

 

https://mimedx.gcs-web.com/news-releases/news-release-details/mimedx-announces-organizational-realignment-program

 

The realignment will include a reduction of the MiMedx workforce by approximately 240 full-time employees, or 24% of its total workforce, of which about half are salesforce personnel.

 

As previously announced, the Company is restating its financial statements. Due to the depth, breadth and complexity of issues identified, management has expanded the scope of work in connection with the preparation of the Company's financial statements and is unable to estimate the expected completion date at this time. 

 

Due to the changes in business practices discussed above and other factors, including the inability to provide the full context of current or past performance, the Company is not currently in a position to provide any financial performance-related information.  Moreover, at this time, the Company cannot estimate its exposure, if any, to potential contingent liabilities related to pending and threatened shareholder lawsuits, pending governmental investigations or other legal proceedings.

 

As previously disclosed, the Compensation Committee and the Board determined that the separations of the Company's former CEO, COO, CFO and Corporate Controller should be treated as "for cause" and that these former executive officers had engaged in, among other things, conduct detrimental to the business or reputation of the Company.  The departures of these former executives have enabled the Company to progress in the preparation of its financial statements. 

 

The Audit Committee's independent investigation is still ongoing, and there may be other actions taken based, at least in part, on information from the investigation. The Company continues to incur significant legal and accounting-related expenses related to, among other things, the Audit Committee's independent investigation and other legal matters, the Company's work to prepare its restated financial statements and the implementation of improved business controls.

 

Separately, the Board of Directors' search process for a permanent CEO is active and ongoing, and the Board has been meeting with candidates. However, the ongoing investigation, resulting extensive accounting analysis and pending financial restatement process make it challenging to attract qualified candidates. In addition, the financial restatement process has presented a practical issue with respect to candidates having sufficient information to evaluate the Company's financial situation and overall business.

 

The end is near here.

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Gregmal,

 

Was your trade here just that it was oversold and had to pop, and if it did pop it would be substantial given short interest? 

 

It is well known that even terminal companies can bounce numerous times, by more than 100%, on the path to 0.  While I know that, I never can bring myself to even attempt to trade it.  But power to you if you can.

 

The news from the company today was awful.  The auditor that was supposed to help the company restate the past 6 years quit, amongst 24% of the staff being fired, etc..  Honest question, How in the world does a company like this ever get out financials?    They have now had 2 of the big 4 quit.  They still have to review the past 6 years of financials.  Who is left to do that for them?  Who can accept that liability, knowing the mess you are getting into?  And finally, who knows if that can afford such an audit?  Really interesting to watch this all play out.

 

To me at least, it just seemed that at that given point, you had a pendulum swing that more or less stuffed so much negative into such a short time frame, that simply no news would swing things back to the middle. These events, all occurring in rapid succession, plus what to me seems to be at least to the plausibility that the business could be real, made this kind of an easy opportunity. With a 2 day bounce of around 60% that proved to be the case. So definitely more lucky than good, but finding setups like this, where there are multiple ways to win, is something that I have found sensible and profitable.

 

A few years back Deutsche got walloped and there was a big overreact, just waiting for the pendulum to swing back again worked out. This one is stickier but if you manage your allocations there is nothing wrong with speculating. Worst case is always zero. No big deal.

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Well, I like to live dangerously so I got in here again at 1.25 with a very, very tiny position.

 

For records sake, I do not think this situation at all resembles the one I started the thread with. Yesterday's announcement is single and specific, rather than the multi-pronged clusterfuck that happened in early November. So from here I expect it to just kind of float. No massive snap back. But I do think this has to be the last shoe to drop before we get finality.

 

The audit will take time, but EY was only doing 17+18. They'll need to be replaced although there is definitely a good chance they don't even end up releasing anything. All in all, the audit IMO is make or break and will probably cost 10-20M. I expect a good chunk to be off-set by FCF but essentially, I think the big risk is the shareholder lawsuits. Those I can't see being resolved until both the audits and the criminal investigations take place. I don't think the gov puts this company away, and if the restated financials are not atrocious, this thing flies and I would assume the capital markets open up as an option to fund any future payouts.

 

Whereas, any positives, even finding a new CEO or at this point even a little short covering I think get you a good hop.

 

At the same time there are plenty of high quality companies available, at very cheap prices, so I kind of ask myself WTF I'm doing here with this. But it's only 15 basis points so let's roll the dice.

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Well, I like to live dangerously so I got in here again at 1.25 with a very, very tiny position.

 

For records sake, I do not think this situation at all resembles the one I started the thread with. Yesterday's announcement is single and specific, rather than the multi-pronged clusterfuck that happened in early November. So from here I expect it to just kind of float. No massive snap back. But I do think this has to be the last shoe to drop before we get finality.

 

The audit will take time, but EY was only doing 17+18. They'll need to be replaced although there is definitely a good chance they don't even end up releasing anything. All in all, the audit IMO is make or break and will probably cost 10-20M. I expect a good chunk to be off-set by FCF but essentially, I think the big risk is the shareholder lawsuits. Those I can't see being resolved until both the audits and the criminal investigations take place. I don't think the gov puts this company away, and if the restated financials are not atrocious, this thing flies and I would assume the capital markets open up as an option to fund any future payouts.

 

Whereas, any positives, even finding a new CEO or at this point even a little short covering I think get you a good hop.

 

At the same time there are plenty of high quality companies available, at very cheap prices, so I kind of ask myself WTF I'm doing here with this. But it's only 15 basis points so let's roll the dice.

 

cc:  Bagholder Quotes

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Well, I like to live dangerously so I got in here again at 1.25 with a very, very tiny position.

 

For records sake, I do not think this situation at all resembles the one I started the thread with. Yesterday's announcement is single and specific, rather than the multi-pronged clusterfuck that happened in early November. So from here I expect it to just kind of float. No massive snap back. But I do think this has to be the last shoe to drop before we get finality.

 

The audit will take time, but EY was only doing 17+18. They'll need to be replaced although there is definitely a good chance they don't even end up releasing anything. All in all, the audit IMO is make or break and will probably cost 10-20M. I expect a good chunk to be off-set by FCF but essentially, I think the big risk is the shareholder lawsuits. Those I can't see being resolved until both the audits and the criminal investigations take place. I don't think the gov puts this company away, and if the restated financials are not atrocious, this thing flies and I would assume the capital markets open up as an option to fund any future payouts.

 

Whereas, any positives, even finding a new CEO or at this point even a little short covering I think get you a good hop.

 

At the same time there are plenty of high quality companies available, at very cheap prices, so I kind of ask myself WTF I'm doing here with this. But it's only 15 basis points so let's roll the dice.

 

cc:  Bagholder Quotes

 

Well, I nailed it once, so I'm probably a little more eager to try it again. Oh well.

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Well, I nailed it once, so I'm probably a little more eager to try it again. Oh well.

 

Daytrading fraudulent pink sheets stocks is not the way I would try to compound wealth.  The stock popped and you were "right" but it's down a lot since then, and will continue to go lower.

 

Good luck on your trade.

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Well, I nailed it once, so I'm probably a little more eager to try it again. Oh well.

 

Daytrading fraudulent pink sheets stocks is not the way I would try to compound wealth.  The stock popped and you were "right" but it's down a lot since then, and will continue to go lower.

 

Good luck on your trade.

 

I don't disagree. Trading has just as much to do with sentiment and probability as it does with the actually vehicle. See SharperDinegaan's BTC trading last year. You can flip a bag of shit if the entry is right and you have your target in site.

 

I won't lie though, my core positions are concentrated, and boring... so there a little bit of an entertainment value here for me too. I'm aware of all the traditional value investor no-no's I'm doing, but its my money, it's an irrelevant amount, and to be fair, the way a lot of great investors have spent trying to compound wealth, ie sitting on huge piles of cash for the past decade, hasn't exactly been a winning strategy either.

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Well, I like to live dangerously so I got in here again at 1.25 with a very, very tiny position.

...

so let's roll the dice.

Well, I nailed it once, so I'm probably a little more eager to try it again. Oh well.

I will say: "Wow!"

This episode reminds me of when we watch the TV show that displays home-made videos and that ends up showing the "best of" consisting of a series of "fails" and a conclusion with a "success". With that last "success", one never knows if this was the only take and some ability is often involved but I always say Wow! (with mixed feelings).

But it's good entertainment.

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Well, I nailed it once, so I'm probably a little more eager to try it again. Oh well.

 

Daytrading fraudulent pink sheets stocks is not the way I would try to compound wealth.  The stock popped and you were "right" but it's down a lot since then, and will continue to go lower.

 

Good luck on your trade.

 

I don't disagree. Trading has just as much to do with sentiment and probability as it does with the actually vehicle. See SharperDinegaan's BTC trading last year. You can flip a bag of shit if the entry is right and you have your target in site.

 

I won't lie though, my core positions are concentrated, and boring... so there a little bit of an entertainment value here for me too. I'm aware of all the traditional value investor no-no's I'm doing, but its my money, it's an irrelevant amount, and to be fair, the way a lot of great investors have spent trying to compound wealth, ie sitting on huge piles of cash for the past decade, hasn't exactly been a winning strategy either.

 

Trade how you feel, but pumping a fraudulent penny stock by posting to a value investing forum (or any forum) is not within the spirit of this board (in my opinion).

 

I only contributed to this thread at all because I think it's important that people know that there are serious issues going on with this security--financials need to be restated back to 2012, CEO/CFO/C-Suite execs fired for fraud, Auditor resigned with no new auditor named (and no disclosure yet of any disagreements with management), layoffs, liquidity issues, no current disclosure of cash or share count, allegations of channel stuffing, de-listing without disclosure of the reason, etc.  This name is simply un-investable as a long idea.

 

If I were an admin, I would lock this thread.  This is simply not a viable investment idea for people who were not previously involved in this name.

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Well, I nailed it once, so I'm probably a little more eager to try it again. Oh well.

 

Daytrading fraudulent pink sheets stocks is not the way I would try to compound wealth.  The stock popped and you were "right" but it's down a lot since then, and will continue to go lower.

 

Good luck on your trade.

 

I don't disagree. Trading has just as much to do with sentiment and probability as it does with the actually vehicle. See SharperDinegaan's BTC trading last year. You can flip a bag of shit if the entry is right and you have your target in site.

 

I won't lie though, my core positions are concentrated, and boring... so there a little bit of an entertainment value here for me too. I'm aware of all the traditional value investor no-no's I'm doing, but its my money, it's an irrelevant amount, and to be fair, the way a lot of great investors have spent trying to compound wealth, ie sitting on huge piles of cash for the past decade, hasn't exactly been a winning strategy either.

 

Trade how you feel, but pumping a fraudulent penny stock by posting to a value investing forum (or any forum) is not within the spirit of this board (in my opinion).

 

I only contributed to this thread at all because I think it's important that people know that there are serious issues going on with this security--financials need to be restated back to 2012, CEO/CFO/C-Suite execs fired for fraud, Auditor resigned with no new auditor named (and no disclosure yet of any disagreements with management), layoffs, liquidity issues, no current disclosure of cash or share count, allegations of channel stuffing, de-listing without disclosure of the reason, etc.  This name is simply un-investable as a long idea.

 

If I were an admin, I would lock this thread.  This is simply not a viable investment idea for people who were not previously involved in this name.

 

Well, I’m not quite sure where the animosity is coming from but a couple things. I’ve been completely transparent about what is essentially just my opinion. Pumping? Lol come on man, that’s ridiculous.

 

Second, this is something you state matter of factly, is fraudulent. Whereas I’ve straightout said, I don’t know. But this is also a value idea on a couple other higher end places, including VIC.

 

So, my apologies to anyone I’ve offended. To think I need to apologize for discussing what is at the least, an interesting situation, is absurd. The community imo is useful for two things, idea generation, and entertainment. And yet it’s anazing to see how many people get their panties twisted because they see a political opinion they disagree with or an investments discussion that no one forces them to read. Perhaps I’m better off wallowing underwater on shit like JD, FNMA, FFH and SHLD because it’s what everyone else is doing...

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Well, I like to live dangerously so I got in here again at 1.25 with a very, very tiny position.

...

so let's roll the dice.

Well, I nailed it once, so I'm probably a little more eager to try it again. Oh well.

I will say: "Wow!"

This episode reminds me of when we watch the TV show that displays home-made videos and that ends up showing the "best of" consisting of a series of "fails" and a conclusion with a "success". With that last "success", one never knows if this was the only take and some ability is often involved but I always say Wow! (with mixed feelings).

But it's good entertainment.

 

I didn't see your post but will comment and then I'm done on this name.

 

The comment is somewhat tongue in cheek but if it brings you entertainment, great. I can't imagine that's not at least partially why we're all here.

 

On MDXG. The first idea was something I found interesting enough to decide it worth designating capital to within the parameters of what I allow myself to speculate with. The second time things came around the specific stock was the same, the setup quite different, the information available- slightly different, and the capital available, larger...

 

As such, I looked at the idea and felt after the market adjusts to the new information, that I still think there is a worthwhile place for me to take what is IMO a well adjusted roll of the dice. There is a pretty good chance technically that 1-1.3 was part of the deadcat bounce and this is under $1 shortly. I FULLY EXPECT TO LOSE MY ENTIRE INVESTMENT AND SO SHOULD ANYONE ENTERING THIS TRADE. Consensus everywhere is that this is a 0 because it is a fraud. (IMO fraud does not necessarily mean zero, but w/e) I am ok with the risk here, and at the least thought worthwhile discussion could potentially emerge as it does elsewhere around ideas, but apparently not.

 

I mean seriously, WTF is with the whiny and hostile attitude alwaysdrawing? I didn't see you losing your shit on all those "chumps" pumping FNMA even though it's clearly worthless...

 

I've been amazed frankly, at how many super sensitive p**** exist out there. Everyone gets offended by everything. Especially when it comes to politics and investments ideas, everyone gets so butthurt that someone else might have a different opinion. What's that famous Berkowitz saying? To most here, you'd think it was "Follow the crowds"...

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Gregmal, reading into your first post this definitely did not seem a ‘short term play’ from your side. Based on that post I would have said you sold this more as a long term bet where the ‘risk-reward was heavily skewed to the upside’.

 

Here we are, the stock 50% lower less than 1 month after your initial post, and you act as if you nailed it?

 

Sorry, but I agree that this idea does not belong on a value investing board.

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