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Vaso Active Pharmaceutica (VAPH) Message Board

  • kfe1000 kfe1000 Apr 23, 2004 12:19 PM Flag

    Stupid investment of the week: Vaso

    not so active right now,

    no comment about the article in cbsnews, , still an excellent short, if you are able to short pink sheet stocks

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    • What is the next step for Vaph?

    • Yea,
      I followed that one pretty closely myself. We will check back at the distrobution center and I will update. No research is more important than dropping by. Sometimes these things are little more than a doorway painted on a blank wall.
      Take the Market Makers money!!!

    • with the article...I think the notion that people are buying this particular stock for a dead cat bounce is wrong however. No one would buy VAPH for a bounce...the press releases saying don't trust our press releases are some of the most amazing Press releases I have ever read.

      Actually VAPH already experienced its bounce on the first day....traded at 95 cents and then came back up to about 2 dollars on the first day....if there were to be a bounce that was it.

      I think the article is good reference for other types of dead cat bounces....and its good to see an author follow it up in the first place....more often its just swept under the rug.

      Regarding Goldstein's articles....IMHO he deserves an award for his set of article on VAPH, he no doubt save many active investors who bothered to read the news, many dollars. His articles as a set....are some of the best work I have seen in years on an ongoing fraud/manipulation. David Faber is genius for after the fact reporting....ongoing is much harder.

    • Don't let this cat cross your path
      Stupid investment of the week: Vaso Active
      Not surprisingly, the problems made the stock crater. VAPH traded for nearly $8 per share when trading was halted. Upon reopening, it became a penny stock within days, closing under a dollar per share.

      That's the dead-cat drop.

      The bounce is what investors who buy in now are hoping for.

      The problem with the bounce is that short sellers are looking to cover their positions and lock in their profits. So it's not necessarily a rebound to a proper value point. It can be short-lived -- it's a bounce, not a rebound -- and timing can be critical.

      That, too, makes it dangerous water for average investors.

      With some of its numbers and potential being questioned by regulators, Vaso investors have to be a bit perplexed when looking at financial statements, wondering just how much of the information they can trust.

      And when they look at news on the company, most of what they will see is alerts about class-action lawsuits filed against the stock, rather than explanations and clarifications from management. Vaso officials did not return calls placed to them last week.

      Even the company's one bit of good news -- a private placement management was able to land as the price was falling back off its high -- soured when the hedge fund involved was able to back out of the deal.

      "You look at a stock like this and you like the story about what they are developing," says Warren Isabelle, manager of the ICM/Isabelle Small-Cap Value Fund. "You're hoping that the right things can happen, so that the stock returns to the kind of path it was on.

      "But when you are looking at a company and everything seems to have gone wrong all at once, that's not a stock you want to take a chance with. You might be hoping for a rebound, but you have no real reason to expect one. It might be trading for next-to-nothing, but it gives you about the same chance as a lottery ticket."

      Chuck Jaffe is a senior CBS MarketWatch columnist. His work appears in dozens of U.S. newspapers. His MoneyLife with Chuck Jaffe radio show airs daily from 11am to 1pm ET on AM-1060 WBIX in Boston and can be heard live online

    • Don't let this cat cross your path
      Stupid investment of the week: Vaso Active

      By Chuck Jaffe, CBS
      Corrects information about private investment in the company that was withdrawn.

      BOSTON (CBS.MW) -- Professional investors have a lot of cool terms to explain what they are looking at.


      Small investors flocking into currency trading
      Stupid investment of the week

      Few attract as much attention as the "dead-cat bounce."

      Simply put, a dead-cat bounce is what happens when a stock takes a huge tumble, after which it has a little bit of an uptick. It gets its name from the horribly gross idea that even a dead cat, when dropped from a high place, will bounce.

      But just as that thought is not for the squeamish, a stock in the throes of a free-fall -- but possibly headed for a bounce -- is not for the average investor.

      And that's why Vaso Active Pharmaceuticals (VAPH: news, chart, profile), a classic dead-cat stock searching for a bounce, is today's pick for Stupid Investment of the Week. In just a few weeks, the Danvers, Mass-based pharmaceuticals company had its trading suspended for two weeks by the Securities and Exchange Commission, was delisted by the Nasdaq Stock Market and learned that it is the subject of a Food and Drug Administration investigation.

      Its supporters suggest that things have gotten as bad as they could be.

      But Stupid Investment of the Week is designed to highlight the problem traits and flawed thinking that make a security less-than-ideal for the average investor. Virtually any stock with as many troubling conditions as VAPH quickly becomes the domain of traders and short sellers, which makes it rough ground for average investors.

      While obviously not a buy signal, neither is SIOTW an automatic sell signal, as there may be times when dumping a problem security merely compounds the problem. With Vaso Active, however, that's probably not the case. Investors who bought shares of last December's initial public offering at about $5 per share -- or who bought when the stock peaked in the $35 range (before a three-for-one split) -- are looking at massive losses if they held on.

      Today, with the stock trading at less than a dollar per share, some investors look at the history, as well as the potential that drove the stock skyward, and expect a rebound.

      It may happen, but that does not make this a pool that average investors want to swim in just yet.

      For starters, VAPH is just a week off of its trading suspension. On April 1, the Securities and Exchange Commission announced a two-week suspension of the stock "because of questions regarding the accuracy of assertions by VAPH and others" about FDA approval of some key products, as well as assertions made by the company in its reports and financial statements. The stock began trading again after the suspension ended April 15.

      The company agreed to stop selling its products, including an athlete's foot treatment called Termin8, until the FDA concerns are resolved.

      During the suspension period, Vaso got a letter from the Listing Investigations section of the Nasdaq, warning of an open inquiry into whether the company was continuing to meet listing requirements.

      Management voluntarily removed the stock from the Nasdaq in order to focus on its other issues. It was removed from the exchange midway through its trading suspension, so that it now trades on pink sheets.

      Pink Sheets is a centralized quotation service for stocks in the over-the-counter market. While there are many fine companies traded on Pink Sheets or the OTC Bulletin Board, these are not the trading domains commonly frequented by average investors, as information flow on these issues frequently is more sparse than on the bigger boards.

    • I haven't been able to short it...just was saying that it is a great short. I haven't really tried yet but am going to get serious and check with some contacts about shorting it.

    • Z, how on earth were you able to short WHIS?

      The Baron

    • herringto, thanks for the info, that is some good work. I nver had a question that they were a real business, unlike VAso, but they screwed up by trying to pump their stock and will pay by having a lower stokc price. I've covered some of my position but will look for 6s or 5s before covering the rest.

    • About ABIX. A friend of mine went to their Houston distrobution center to check them out. He said they had a very large warehouse with 12 loading docks. They had a small office with about 14 people working pushing paper. They did not have the RapidCool, but said they would send him information. Although there were no 18 wheelers there at the time, it was clear they do regular business. While he was there a truck pulled in to pick up Cleaning supplies ie mops brooms and such. It is not a short to the dirt, but is real, not vapor like vaph.

    • kfe,

      We are all just waiting around patiently as this transdermal technology finds its true value in the marketplace...when it does we shall all over. Till then we just wait and chat among ourselves.