HelloI'm writing this letter about and to Somatic Systems Institute. Somatic System Institute CEO has been working on his business for over 15 years and two and a half years ago the CEO decided to go public on the stock market. After 15 years of planning and learning you would think the CEO should have some sort of a clue how to run a business. You would think the CEO should know that honesty and integrity is important. You would think that the CEO after all this time would have some sort of plan to bring the company to profitabilityespecially since the company is public and selling shares of the company bringing in new owners. You would think the CEO should know that growing beyond or to fast. Trying to do to many things at one time will only have a negative impact on the company especially if they can't afford everything.
To make a long story short. Back in Aug and Sept the company started an aggressive stock buyback and retired over 25% of their stock. At the same time they put out news PR, after news PR, after news PR. Nothing but good news.in their last share buyback PR from Sep 23 they said the following.
The sizable elimination of shares has all been completed within the one month since Somatic Systems announced it would begin a massive share acquisition and cancellation program, to restructure the company's capital and grow share price without conducting a reverse split of the stock. Furthermore, the company has stated its intention to continue to acquire and retire additional shares.
Now it's almost three months later and there are more shares issued now than before they started the buyback and they are now in the floatnot restricted anymore. None of this made any sense and I started to dig a little deeper and ask questions. I've email the CEO and got no reply. He held a conference call online and answered shareholder questions that were submitted online but none of my questions got answered. I don't really care about any money that I've lost and now it's about principle.in my opinion I think the company put out false and misleading PRs about the buyback and also planned and released good PRs after the share retirement for nothing more than to maintain a higher PPS so the company can complete a successful pump and dump while lying to shareholders.
1.) If you read what they said in their PR you would think the company is doing better now and they just completed a major share retirement and also said the intend to continue to acquire and retire more shares.
2.) How can a company say they the company has stated its intention to continue to acquire and retire additional shares. But only weeks later they started to sell shares at artificially inflated prices from a false and misleading PR.
3.) How was the PR false and misleading? IMO they did retire shares but calling it a buyback is false and misleading because a majority of the shares retired were shares held by insiders that were restricted anyways and they didn't buy any or very little from the float. They didn't mention how they got the shares but retiring shares held by insiders is not a buyback but a share retirement. Why did they do it this way? Because they don't have any money to buy shares. So what to they do? They call it a buyback but its nothing more than a paper shuffle and insider shares were retired. Of course for the pump and dump.
4.) Also. How can the company say they intend to continue to acquire and retire additional shares if they don't have the money to do it? IMOto keep the PPS up while they pump and dump?
5.) How much revenue does the company make? Nobody knows. Probable because it won't help the pump and dump.
6.) How much money did SMAS have in the bank when they said Furthermore, the company has stated its intention to continue to acquire and retire additional shares? It can't been very much as they have been selling billions of shares to fund the company up to now.
7.) Prior to the buyback and after the buyback how have insiders holdings changed during this time period? Nobody knows as it will probably impact the pump and dump.
8.) Why would insiders give their shares away? Because the company needs to raise money and after they do a RS its not hard to give insiders majority ownership.
9.) Why do a share retirement if your going to turn around a dump billions only weeks later? The stock had a no bid and they need money. Put out a false and misleading PR and put the word buyback in it. Put out a couple more a false misleading PRs and not only does the stock have a bid now but it's up 200-300%. Let the shareholders think you're still buyingrelease a couple more good PRs and 4-8 weeks later the shareholders find that Steve (CEO) dumped 2-3 billion shares on false and misleading PRs.
It very easy to see Steve is willing to lie, and deceive shareholders for his own gain. The scary part is he is trying to get a major DOD contract to help and treat our troops. Does somebody like this even disserve the opportunity to do anything with our troops when it's easy to see Steve is willing to screw shareholders with false and misleading PRs?
Joelotto
This is all in my opinion and I could be wrong about some of but I don't think so. Maybe the CEO will take it like a man and start telling shareholders the truth.
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