Tuesday, February 11, 2014

Nearly Sublime Pump and Dump NNVC

Wow, interesting to watch it unfold.  Here is the story:

I am always in search of the next great stock and want to follow winners in the market.  One day on a public message board I came across a poster that claimed to have made millions in the market over many years.  I was able to send him a message, heard back from him after a while.  He seemed very open to talking, sent me his email address, his real address, and his phone number.  He encouraged me to call:


Jan 9
to me
My sincere apologies!  I just discovered your message on InvestorVillage and would love to chat about how I have made millions over a 50 year career. I am a "snowbird" from Maine, currently living in our Florida home. My phone number in Florida is 352-835-7258.  Call between 6 and 8 PM any night and leave a message if we're out to dinner. 
Look forward to getting to know you. 
Dave Morse
2346 Fairskies Drive
Spring Hill, FL 34606

I wrote back to him and got the following reply: 

 I can't wait to chat.  You will find my approach to investing exactly opposite to the mainstream, but.....it works.  For openers, let me state that I have always only invested in ONE stock at a time.  Incredible, isn't it!
My only account (held at Vanguard, with a twinkle, since they would find this approach anathema) is a Roth IRA that only holds two stocks:  550,000 NVAX and 100,000 NNVC.  Why 2 stocks?  Because in the last month I made over $1 million in NVAX and decided to "seed" my next holding when NVAX gets bought out for over $20 per share, which I expect to happen THIS YEAR!
That's all for now.  However, two points:  don't call me sir, I'm Dave;  and keep all our conversations in the strictest confidence.  In fact, one of my tenets when teaching others is that you should only discuss your portfolio with family and your closest friends!  To do otherwise only elicits jealousy or ridicule depending on how that investment performs.  Got it!

This seemed of interest still, though this microcap NNVC seemed odd.  I'd called and missed him and decided to ask him some simple questions directly:

Mr. Morse,
So how have you made millions in the market?
What did you invest in and why?
What is your story?

WHAT CAME NEXT REALLY PUT MY BS DETECTOR UP, a group email seemingly touting this microcap without any real research, just seemingly supporting evidence.  I hate group emails, folks, you gotta do this with BCC function to control spambots.  Ok, the email as follows: 


Jan 10
to mudhillmashers.MorsejesssprowlPATRICK_MCSHAN.sproulgirlscookegdMaryjnpaulgotekgofrench.laurainfostjohnsinhp35me
I have been very quiet this week in chatting with you.  The reason is that I have sold some of my NVAX to establish a meaningful "seed" holding in NNVC and to replenish our checking account at USAA.  I now have two holdings in a ratio of 82%/18%:  NVAX and NNVC respectively.  Since I fully expect NVAX will be acquired this year I thought it wise to add NNVC now because it is completely undiscovered by the elephants (institutions) and yet it's potential is nothing short of amazing. At some point some news event or article about their platform technology of creating nanomaterials for viral therapy will explode this stock. With only 50 million shares outstanding (36 million in the "float") it is truly a microcap and EXTREMELY HARD FOR ELEPHANTS TO ESTABLISH A MEANINGFUL POSITION. BUT THEY WILL!!!!!!
Please, all of you, start your DD (due diligence) ASAP and establish a small position, or at least monitor the price until you have the ability to do so. I wouldn't know where to begin in describing this company, so I will tantalize you with the following quotes:
1. From Prof. Milton Boniuk, M.D., the first investor in the company and board member:  "Dr. Diwan explained to me how it would be possible to create a novel drug against a previously unknown virus in a matter of weeks.  He did just that against MERS Coronavirus in just a few weeks."
2. From S_Colton (Message 493 on InvestorVillage):  "This drug approach is revolutionary with a great safety profile and dramatic consistent results in over 5000 animal tests".
3. From Dr. Seymour, President, in an email to a shareholder on 8-20-2013:  "No one can compete with us, either on price or effectiveness".
4. From Zincfinger on 12-2-2013 on InvestorVillage:  "This stock has one of the best risk-reward ratios I've ever seen".  Commenting on the toxicology data on FluCide, the lead drug candidate:  "Tox was indistinguishable from zero; FluCide will pass clinical trials (in humans)".

I do a little bit more work reading the company and reply back to everyone:

4nursebee . 

Jan 10
to Beetlemorsemudhillmashers.MorsejesssprowlPATRICK_MCSHAN.sproulgirlscookegdMaryjnpaulgotekgofrench.laurainfostjohnsinhp35
NNVC= horseshit.  Is this pump and dump sublimely done?
No mutual fund ownership, certainly not the quality of Fidelity.
Pipeline=nothing unique
CEO selling shares, NVAX insiders accumulating.
I am a nurse with degree in chemistry.
They have nothing to sell and NO products in trials.

My due diligence done,

Mr. Morse cuts all communications with me, acts offended, condescending perhaps.
I also checked google maps for where the company HQ was, some run down looking building that struck me as a place to get mail for pseudo shell corporations.

Be careful in the market, there are many wolves in the arena.  Price has only come down and bigtime this am.


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