Shorts out with another hit article today by StreetsweeperJust what you would expect after the Nasdaq news. More innuendo and B/S from that award winning journalist Mellisa Davis. She probably visited the TO shorts to make sure she gets paid before she put out this lates piece of garbage. Desperate people do desperate things. Her is a little bio on Mellisa herself that you will find interesting. Here again is an overview of Melissa Davis and her credentials.
Friday, 06/01/12 05:15:28 PM
Re: None
Post # of 13549
Melissa Davis of StreetSweeper: In Bed with Short Sellers and Convicted Felons
When Melissa Davis of TheStreetSweeper.org published an article about RedChip that was as bizarre as it was inaccurate, RedChip decided to do a little homework on this “financial journalist.”
When she pointed to two stocks that RedChip represented 5 years ago for less than 6 months in an attempt to define our 18-year history, we thought something might be up. When she failed to mention our stellar track record in representing some of the top small-cap names in the market, and when she failed to mention any of our current 30 clients and the market-cap and percentage gains they have experienced under the comprehensive RedChip platform, we knew there had to be a hidden agenda. Approximately 90% of RedChip clients are profitable with strong annual revenues and earnings growth. Many are listed on the Nasdaq and NYSE: Amex.
When she failed to mention that the only notable critics of the RedChip hybrid research model were she, Herb Greenberg, and a now-defunct research competitor, we took a closer look at her background and that of her employer.
Paid by Hedge Fund Shorters to Write Hit Pieces
On February 10, 2011, Ms. Davis published a StreetSweeper article on vaccine developer iBio, Inc. that included the following disclosure:
Prior to the publication of this article, a third-party investor with whom TheStreetSweeper has a profit-sharing arrangement effected a “short sale” of 89,715 shares of the stock of iBio, Inc. at $5.31 a share with the intent of profiting from decreases in the price of such stock. TheStreetSweeper will share in any profits the third-party investor realizes from the short sale.
The fact that TheStreetSweeper.org was in cahoots with a hedge fund shorting the stock Davis attacked should speak volumes to investors about the integrity of her reporting and TheStreetSweeper.org’s real purpose. Davis is a paid hack, not an objective journalist.
Convicted Racketeer Sits on TheStreetSweeper’s Advisory Board
Among other journalistic tactics, Ms. Davis is fond of implying current malfeasance by dredging up prior executive sins, as in a June 2010 exposé titled “Ecosphere: A Clean Energy Company with a Dirty CEO?” in which she trumpeted drug convictions that the CEO of Ecosphere Technologies, Inc. incurred more than 20 years ago. Such actions are hypocritical when you consider that a key member of TheStreetSweeper’s “clean up crew” was convicted less than a decade ago of racketeering as well as conspiracy to commit securities fraud and money laundering. Apparently rehabilitation is something that only members of the StreetSweeper team can achieve.
Tabloid Journalism
In today’s digital age, it is entirely possible to produce high-quality journalism armed with only a phone line and an Internet connection. Indeed, Ms. Davis was honored by the Society of American Business Editors and Writers in 2008 for “Shattered Hopes,” a piece about Johnson & Johnson that she penned for TheStreet.com. We commend her for this achievement; however, her work for TheStreetSweeper.org falls far below “the highest standards of economic journalism.” Her pieces are packed with editorializing phrases and loaded words that display obvious bias, her work reveals little that isn’t already publicly available in SEC filings and press releases, and she draws unsupported left-field conclusions with the breathlessness of a celebrity tabloid reporter.
Takes Credit Where It Isn’t Due
In her RedChip article, Ms. Davis credits TheStreetSweeper with being the first to caution investors about Imaging3, Inc., a medical device company that was a RedChip client for less than a year in 2008. IMGG hit an all-time high of nearly $2 per share in November 2009 before plummeting shortly thereafter. Ms. Davis misguidedly accuses RedChip of not warning investors about IMGG’s imminent downfall.
Here are the facts: Prior to dropping research coverage of IMGG in January 2009, RedChip downgraded its initial rating of “Speculative Buy” to a “Hold” and suspended its target price on IMGG stock, citing concerns about the Company’s lack of visibility, weak balance sheet, and high capital requirements. In other words, RedChip voiced serious concerns about IMGG nearly a year before the stock “collapsed.”
In contrast, TheStreetSweeper didn’t “sound the alarm” on IMGG until November 2009—more than 11 months after RedChip.
Overstates Credentials
Prior to joining TheStreetSweeper, Ms. Davis spent two years as a reporter for The Daily Oklahoman (now The Oklahoman), a newspaper based in Oklahoma City. CNBC commentator Herb Greenberg recommended her for a job at TheStreet.com because both were researching Pre-Paid Legal Services, Inc. at the same time and he came across her article on the company. Although her StreetSweeper bio touts her seven years of experience as “one of the top investigative reporters at TheStreet.com,” Ms. Davis recently informed Matt Kantrowitz, RedChip’s Director of Equity Research, that she was only a freelance contributor to the site, worked out of her Oklahoma City home, and barely met anyone at the company during her time there. Does this sound like the description of a “top” reporter? One would expect more integrity from someone who works in an industry built upon objectivity and the pursuit of truth.
Low Ratings
TheStreetSweeper does not have much of a following, as its ratings are so low it does not even register as a followed site on Quantcast.com and ranks poorly at Alexa.com. Certainly, citing an anonymous poster from the Yahoo! Finance message board as a source does little to enhance one’s journalistic credibility. Nevertheless, everyone loves a good scandal, and such muckraking journalism carries the potential to drive down a company’s stock price–and has successfully done so in the past. Such slanted journalism must therefore be exposed.
Unreliable Reporting, Not to be Trusted
We at RedChip applaud the efforts of those who legitimately attempt to uncover stock scams and report them in an objective manner. As for Ms. Davis, her work is couched in innuendo, inflammatory language, misdirection, and logical fallacies. Her heavy reliance upon verbal gymnastics and sensationalism calls her motives into question. In our view, this is one “journalist” whose work just can’t be relied upon.
Disclosure: The subject securities are not clients of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit https://bit.ly/QXBUFd.