Anyone whose read my posts know Ive been highly critical of Wothless Pennies continuous bash campaign and have called this guy out on many of his accusations. But one of my jobs as an investors is to not be emotional or defend a company simply because I'm long (which I am here - and that may change soon), but to thoroughly research everything to get a real assessment.
I found something that is highly disturbing to me tonight and I'm hoping someone can alleviate my fears here, or we may soon have ourselves a halted stock that re-opens for zero and change.
Look at the dates of Brandon T. O'Brien's sales, he claims he sold 90 thousand shares of ZAGG on September 22, 2010 at an average price of 8 and some change.
Problem is, ZAGG was no where near that price on September 22, 2010, it was in the 4 dollar area, so how on earth could O'Brien sell all those shares on 9/22/10 at an average price of 8 and change? It's impossible.
This suddenly gives credence to some of the negative posts worthless pennies has written. For example, do some research on the former company O'Brien used to work for and what happened to them.
The reason this is scaring me is because you are now now not talking about real fundamentals, business related issues, but potential fraud. And if there is fraud, we could wake up one morning to find this stock halted with no way to get our money out until it re-opens, which if fraud is proven, there would be no money left to get out, we are talking zero pps.
Any enlightenment would be appreciated. Or am I just way off base and missing something here? I hope so, but I don't think so. Please study this carefully.
This is the footnote to that price mentioned on the SEC filing:
The price reported is a weighted average price. These shares were sold in multiple transactions at prices ranging from $7.97-$8.18. The reporting person undertakes to provide the Issuer, any security holders of the Issuer, or to the SEC upon request, full information regarding the number of shares sold at each separate price with the range set forth on this Form 4.
I would assume given the explicit footnote that the price is correct on the filing. Also, on the top of the filing is a box marked earliest transaction filled in 10/22. Finally, it would make sense to sell shares on a date one is set to aquire free shares. I would assume from here it is just a clerical error which happens frequently on SEC forms.
According to MSN link the price of the 90k sold was $3.89, not $8.06. Probably just an error in Yahoo's data bank which is not unusual.
You want answer to questions only you are proposing. This company is on a clean slate with their listing on the nasdaq. If you can't trust the average small business in America then what has this world come to? Seriously this stock is doing just fine.
Worriesome. Maybe good I didn't buy this stock after all. Did a little more research on the subject and found this. Did he backdate to avoid a blackout, thinking no one would catch it? Either way you guys don't have apparently the brightest CFO, how could someone doing the numbers on this company make such a bonehead error? Whether he broke the law or not. Doh!
wow, the stories get better and better every time. You people really amaze me, you really do. Take your conspiracy theories somewhere else... If anything you are helping the situation. Please, Please, keep trying to increase the short interest. Because as the explosive sales quarters continue and new products keep coming to market this stock will sky rocket because of so much covering. Do you really think that a company of this size would be involved in such activities? How naive are you?
Agreed. All these cheap, dimestore theories are really getting old. Just a bunch of people who have no idea what they're talking about or what the laws/rules are. I'm actually glad that it has dipped so much on complete vapor...all that mean is that a bunch more greedy fools will jump on board to short, then wind up losing as they watch this stock goes up. Holiday sales will be huge.
Let's see...if Robert was SELLING shares and the market was around $3, then who was the BUYER paying $8??????
Your story holds no water since this sale was AN OPEN MARKET TRANSACTION. hence the regulatory filing. The sate is wrong. The broker probably messed it up.
The shorts are getting desperate here. keep piling on an take us to double digits!!
Thanks for drawing our attention to the fact that the CFO donated 10% of his money to charity.
Strikes me that we have a very selfless leader in him, and not someone out to commit fraud.
Please stop your continued slander young man.
Date transacted 10/22/2010. It just looks like he filled the form out wrong. On October 22, the $8.06 price he specifies definitely falls within range that the stock traded on that day. I don't think there is any issue here, he just made a simple mistake. What are your concerns specifically about that date being 9/22/10. What could possibly be bad about putting that date instead of the sale date, other than it is incorrect???
The only reason this would be a problem is if O'Brien was intentionally back dating the sale for some reason and hoping it would just go unnoticed. That is illegal and yeah, we'd definitely have a mjor problem on our hands. Halted stock, investigation etc.
But seriously, would he be that stupid to put the entire company, CEO, shareholders etc at stake here, unless he was a criminal who had no conscience, which most criminals don't. The question is, when was the black out period for ZAGG. If October 22nd falls under a blackout period, then again, yeah, we have an even more major problem. I don't know the black out periods are for ZAGG, so if anyone can shed light on that I'm sure we'd all appreciate it.
I really think guapo you are just panicking here, the "Worthless Pennies" fool finally got to you and is psyching you out. Chill, at least until we get to the bottom of this and hopefully all is fine.
Even worse, the price range of ZAGG omen 9/22/10 was in the upper 3 range.
Now I'm suddenly wondering about this backdating concern.
Lesson here is, just don't invest anything you can't afford to completely lose.