By Matthew Goldstein TheStreet.com Senior Writer 3/3/2004 4:34 PM EST Click here for more stories by Matthew Goldstein
Federal securities regulators have begun asking questions about Vaso Active Pharmaceuticals (VAPH:Nasdaq - commentary - research), a tiny company that has seen its stock soar 600% since going public late last year.
A Bronx, N.Y. podiatrist, who is president of The American Association of Medical Foot Specialists, said he received a telephone call Monday from the Securities and Exchange Commission about the association's endorsement of Vaso Active's main product.
Dr. David Z. Ascher said the SEC official inquired about the association's endorsement of Termin8--a foot cream that Vaso Active claims is "remarkably effective'' in curing Athlete's Foot. Ascher didn't discuss the specifics of the phone conversation, but said his association stands behind its endorsement.
Two weeks ago, Ascher created a bit of controversy when he told Barrons he didn't recall endorsing Termin8. But a few days later, he amended those remarks. In an interview with the TheStreet.com, Ascher said he was confused when he talked to a Barron's reporter because Termin8 used to be called something else, deFEET, before Vaso Active changed the name a few months ago.
Ascher blamed the confusion on Vaso Active, but said the association would stick by its endorsement. The doctor, however, said he now wanted Vaso Active to make a donation to an association scholarship program. He declined to say how many members belong to the association, which appears to have no headquarters.
A SEC spokesman declined to comment on whether it is investigating Vaso Active. A spokesman for the Massachusetts-based company didn't return telephone calls.
The SEC inquiries come at a time that some on Wall Street are expressing bewilderment at the surge in Vaso Active stock, which went was priced at $5 a share in a December initial public offering. Trading in the 1.6 million shares Vaso sold to the public has been frenzied, with often more than 1 million shares changing hands each day recently.
just another Goldstein example of a man with a mission . . think about it, there is lots to report on these days without having tunnelvision on one stock. This is at least his 3d or 4th blast of editorial crapola . . . . . see Goldstein's pattern of "news" about VAPH in the past two weeks.