The Street Sweeper - Ominto (OMNT): Something's Wrong In Denmark .. And Boca. Ominto: Revenue Depends On Recruits. Much of Ominto’s revenue depends on recruits. The unprofitable company says as much in SEC filings. Dub. Li. com is the product of Dub. Li Network and, as such, requires the network to penetrate consumer registrations. To increase our revenues, we must increase the productivity of this network. Therefore, our success depends, in significant part, upon our ability to recruit, educate, retain and motivate our Business Associates and their ability to expand their organization network and to generate customers who shop at our shopping portal. Our operating results could be harmed if our existing and new business opportunities do not generate sufficient interest to retain and motivate existing Business Associates and attract new Business Associates; or if we fail to educate them about our products in ways that ensure their success or if we fail to properly support them in their efforts. The fees from BAs enable them to sell our products.”Ominto also charges recruits a marketing and training “setup fee: ” “Business Associates (BAs) pay an initial business license fee and Partner Program participants (excluding not- for- profit organizations) pay a setup fee for the marketing and training services provided by us which enables them to begin their sales of Dub. Li. com’s products and services.”Third is “advertising and marketing programs.” .. Parkway Girls Relay Break School Record. Parkway’s team of Clista Hellwarth, Sydney Crouch, Rachel Barrett and Ansley Burtch broke the school record in the 4x100. Job Interview Practice Test Why Do You Want This Job? Answer this job interview question to determine if you are prepared for a successful job interview. Ominto: Multilevel Marketing . But some characteristics resemble the classic illegal, unsustainable pyramid scheme. The company’s 1. 0- K acknowledges the pyramid risk: “We are subject to the risk that, in one or more markets, our network marketing program could be found not to comply with applicable law or regulations. Regulations applicable to network marketing organizations generally are directed at preventing fraudulent or deceptive schemes, often referred to as “pyramid” or “chain sales” schemes, by ensuring that product sales ultimately are made to consumers and that advancement within an organization is based on sales of the organization’s products rather than investments in the organization or other non- retail sales- related criteria. The regulatory requirements concerning network marketing programs do not include “bright line” rules and are inherently fact- based, and thus, even in jurisdictions where we believe that our network marketing program is in full compliance with applicable laws or regulations governing network marketing systems, we are subject to the risk that these laws or regulations or the enforcement or interpretation of these laws and regulations by governmental agencies or courts can change. The failure of our network marketing program to comply with current or newly adopted regulations could negatively impact our business in a particular market or in general.”The Securities and Exchange Commission warns that some MLMs are really pyramid schemes. SEC enforcement director Andrew Ceresney said complaints regarding pyramid schemes seem to be increasing. Participants “profit not from the product they are selling but almostexclusively through recruiting other people to participate in the program,” said Mr.
Ceresney. While Ominto isn’t making a profit, most revenue appears closely tied to recruits, more fully described in our sidebar, “Ominto: Revenue Depends On Recruits.”Mr. Ceresney continues: “In these schemes, there is usually no genuine product or service. Instead, participants in these schemes frequently claim to own, or be developing, some sort of ethereal technology service, such as . The stock took flight after the struggling company uplisted to the Nasdaq in March. We believe the stock is absurdly overvalued and prepared to plunge. Issues include. *This multi- level marketing business requires associates to pay thousands for an “accelerator program” to set up personal shopping web sites, followed by more fees to stay in the game. The focus seems to be on selling the multi- level plan to unemployed grannies, retired teachers and down- on- their- luck folks. Losses rose a stunning 4. Horrible finances have already forced Ominto to close four facilities. So far, the company has accelerated Ominto's losses. Institutional ownership is 0. It doesn’t make money doing that . Meanwhile, The. Street. Sweeper lists the current Cryoport issues most likely to ice investment portfolios: *1. Overdone Ballyhooing When a small company isn’t busy making money – and Cryoport is losing millions – it’s tempting to brag about how things might be, someday, if only . And they seem somewhat successful in convincing others that Cryoport will benefit from any biopharma wins. Here’s a recent Twitter sampling: *2. Taking The Bad. If Cryoport wants to try to align itself with what might someday be advances for drug developers (examples are here : Cryoport provides logistics solution and services for Kite Pharma’s lead clinical program in cancer immunotherapy, here : Cryoport to support Pro. Mab Biotechnologies’ Car- T cell preclinical services and here : $CYRX clients $KITE and $NVS continue to push the envelope. Though Kite’s KTE- C1. FDA review in April, the death may obviously doom both Kite and any associated hoped- for Cryoport benefits. Cryoport has invested a lot of hope and hype in Kite and/or Novartis getting FDA approval for hematological cancer drugs. But Cryoport stock is way ahead of itself and the regulatory process. It’s all too iffy as FDA approval is definitely not a given. Even if approval occurs, commercial manufacturing is still a very long, bumpy road. Manufacturing problems aren’t unusual and can plague even bigger companies. Portola’s anticoagulant drug solution looked like it was a shoo- in. But Portola was unpleasantly surprised last year when the FDA issued a CRL or complete response letter. The reason: manufacturing problems and the need for additional data. Meanwhile, Juno Therapeutics serves as a chilling cautionary note. Last November, Juno voluntarily put a study on hold following two more deaths of patients in leukemia drug trials, bringing the total up to five. Alongside tragic human consequences, Juno’s stock price plummeted and has not recovered. The former $5. 4 stock now trades around $2. Ice Princess. Though Cryoport will likely see its own dramatic stock drop, the company may eventually cold- shoulder investors again by selling stock. As a fan of music, I’d love to learn how to make a song. Devoting time to learning music theory, however, isn’t exactly on my list of priorities. Music lessons. Just three months ago, desperate for operating cash, the company sold 5. For far less than what the stock was fetching. Century (XXII) Announcements = Promos, Dilution, Institutional Selling. The. Street. Sweeper issues a quick update for anyone caught up in 2. Century Group’s (XXII) smoke. The third- party promotions just keep on coming as this off- brand low- nicotine cigarette company attempts to justify its $1. Now, the second- hand smoke from this Clarence, New York company (here) may be poised to kill the average investment portfolio, thanks to: *Promotions, Promotions, Promotions. The company last Friday hyped a previously hyped meeting with the Food and Drug Administration . This hype, in our view, amounts to nothing more than an effort to pump up the stock price. The press release concludes XXII will simply continue with its modified risk tobacco product (MRTP) application. This appears to be just self- promotion. No news. The company's additional recent promotion came as an announcement about an XXII- sponsored survey on low- nicotine cigarettes. That's not all, of course. More hype has been puffed out.. Make sure to continue to closely watch XXII for today because we expect to see this one continue its trend of gains today.”And this: The real surprise is what some unbelievably kind- hearted third party has paid to get XXII pumped. The. Stock. Expert. Sunrise Media, LLC) for an investor awareness campaign regarding XXII. The. Stock. Expert. XXII, which has expired.”A week earlier and a month before that, hype outfits called Small Cap Traders and Road Runner Stocks reeled out more promotions: more.. Hydrogenics (HYGS): Floating on Air, Ready to Drop. Hydrogenics (HYGS) stock has swooshed up by 4. This Canada- based fuel cell company is generally unprofitable, burns about $1. The company focuses on hydrogen fuel cells for stationary and mobile uses, and hydrogen- generating products. The company’s viewpoint is here. Meanwhile, The. Street. Sweeper alerts investors to six top issues ready to burst this overinflated balloon: *1. Major Customer- Investor Sells Stock. Comm. Scope – not only a one- time major shareholder but also a major customer – hits the HYGS sell button ! Analysts: No Room For Growth. The stock has recently attracted coverage of a paltry two analysts. First, Cowen & Co., gives HYGS the rare rating of “Hold,” and a 1. Second, Roth Capital (whose coverage is generally not met with great enthusiasm) reiterated its “Buy” with an $1. HYGS last year. Irwin has a 4. Osborne has a 3. 8% success rate and a negative average return of - 1. HYGS stock is currently nearly at the analysts’ 1. Analysts Consistently Overestimate HYGSAs pitiful as analysts’ expectations are, HYGS fails to live up to those predictions again and again. The company has missed quarterly estimates over the years by 1. Source: Etrade)*4. Faulty Financialsmore.. Century (XXII): Why This Smoking Stock Will Get Crushed. If 2. 2nd Century’s (XXII) idea of reduced- nicotine cigarettes worked as well as its paid promotions, the business might be commercially viable. While it’s easy to blow smoke at investors, the Clarence, New York company is finding it’s a lot tougher to produce. Investors may find the company’s viewpoint here. Meanwhile, The. Street. Sweeper presents the top reasons we believe this smoking stock will get stomped out.*Insiders Yell “Sell!”Average stockholders have gotten what sounds like a sell signal last Friday from none less than the XXII president and CEO. CEO Hery Sicignano exercised cashless warrants at $0. The VP of Research and Development exercised the right to buy 2.
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