Reuters "How to Succeed At Shaving Millions Off A Company's Market Cap or Lie Trying" link
How to Succeed At Shaving Millions Off A Company's Market Cap or Lie Trying
By M.E. Garza
A heavily skewed and apparently poorly researched report published by Bloomberg about Pluristem Therapeutics Inc. (PSTI) (DAX:PJT) on Thursday caused so much damage to share prices that company officials have publicly called for a published correction because "the article is factually inaccurate and misleading."
Worse yet, the timing of this particular article, which was republished and parroted by other publications, comes immediately ahead of significant and highly anticipated catalysts potentially poised to push the stock higher.
Is it any wonder small retail investors have grown tired of getting hurt and shaken out of profits? So much so that more and more of them are deciding to sit on the sidelines as they are left with few options. Some have taken to filing complaints with already over-stretched regulatory agencies at record numbers, but most simply exit the markets shaking their heads.
"The low volume in today`s markets is proof of it. These types of bear raids have become a regular thing, particularly in biotech," says analyst Michael Morhamus who not only free-lances for boutique investment firms but also writes for various publications. "How anyone can write or even editorially approve such poorly researched information and then present it to the markets is puzzling. What`s worse is that despite the devastating effects against fundamentally solid firms, very few of these writers or publications are ever held accountable or sued."
While the Bloomberg piece was peppered with hard to argue facts, its main thesis was potentially libelous. "Facts" were either fabricated or simply not fact checked by the editors who approved them for publication.
At the center of the piece was a pediatric patient whose life was extended by a revolutionary process which was developed by Pluristem and used under guidance by the government of Israel, who approved the compassionate use treatment.
The well documented case, developed after doctors in Romania had given up and declared that there was no chance to cure the local seven year old girl. Her mother was advised to go to Israel to treat the rare genetic flaw, which prevented her daughter`s body from producing blood cells. The gamble paid off and saved her daughter`s life. She survived for months and died of complications which were neither related or associated with the treatment provided at Hadassah Ein Kerem Hospital in Jerusalem by Pluristem. "The patient was able to leave the hospital and survived six months, the last four of them in her home country of Romania," said company officials.
Furthermore, our own calls to officials and others familiar with this case in Israel confirm that doctors at Hadassah Ein Kerem Hospital were the first to learn about the young girl`s death on September 23rd, 2012. Four days after Pluristem`s financing closed.
ridiculous, PSTI should be praised for helping that girl and giving her back life so she could go home and spend the last 6 months with her family, I'm sure if you asked her family they are EXTREMELY grateful.