Newbies Caveat Emptor : Hindenburg essentaiily saying SCAMMay be an oldie, but from a risk stance, still a very relevant goodie! It reflects the culture of cleptocracy from shareholders according to the gist of Hindenburg CFAs.
https://hindenburgresearch.com/nextech-ar/
This company is a scam according to this article. Best wishes for safe investing in the New Year. We will make sure this company goes nowhere and will follow the spinoffs.
The company is insolvent, so always check for low debt and + cash flow which this co has none of.
Happy Investment losses !
Constantinos, chasing the demons, lol
extract ....
Our investigation found that NexTech, a company that proclaims to be a leader in augmented reality, has virtually no credible business prospects and appears to be focused almost entirely on promoting its stock, and insider self-dealing.
The company is on a paid promotion spree, engaging at least 8 promotional outlets. It has pumped out 112 press releases over the past year – equating to a press release every ~2.2 trading days.
Contrary to management’s claims that its customers “have nothing but rave reviews”, we spoke to customers and found that many of them – including ones featured by the company in its glowing press releases – were either entirely unaware they had a relationship with the company or had never actually implemented the product.
We identified multiple brazen related party transactions, including one where the CEO and COO acquired a business personally, only to turn around and sell it to the public company months later, likely netting millions at the expense of shareholders.
The company has a significant share lockup coming due next month from a recent toxic financing and has displayed multiple other red flags, such as recent CFO and COO departures.
We think NexTech has been thoroughly “pumped”. We now expect a “dump”. We believe its equity is worthless.