Email : info@otcjournal.com
URL : http://www.otcjournal.com
To
OTC Journal Members:
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Diomed (AMEX:
DIO) In The NY Post Again- This Time it's a Hatchet Job |
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One week ago today, the NY Post
published a favorable article on Diomed, suggesting the Reverse
Merger method of going public was back in vogue since Wall Street IPO activity
was crawling at a snail's pace. Click
Here if you wish to read the article.
In the interest of fairness and full
disclosure, we inform you there was another article on both Diomed
and the American Stock Exchange published in today's business section
of the NY Post. Today's article is the diametric opposite of last
week's favorable press. Christopher Byron, author of today's hatchet job,
bashes Diomed, the merchant banking firm behind the reverse merger,
and the American Stock Exchange. To get both sides of the story, we strongly
recommend you read today's article. Click
Here to go directly to the article.
Mr. Byron describes the American
Stock Exchange in terms officials at the AMEX must be retching over. Byron
refers to the American Stock Exchange with the following passage: "In
1953, the group changed its name to the American Stock Exchange, but it
has never managed to get the stink off its shoe as a pump-and-dump romper
room." Mr. Byron probably won't be invited for lunch down
at the AMEX anytime soon.
This negative article has temporarily
derailed the upward momentum Diomed, which had climbed from $6.30
a week a go to a closing price of $8.80 last Friday.
Mr. Byron's article is fraught with
inaccurate facts which casts doubt on the credibility of the entire content.
For example, here is a passage from the article:
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BASED on a fairness letter from
New York's Atlas Capital, which figured that DioMed's business was worth
perhaps as much as $140 million, the stock began trading on the Amex
at a bit less than $5.50 per share, and has by now climbed to more
than $8.50.
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This excerpt from the article has
inaccurate facts. The stock did in fact trade very briefly down to $5.50
after the reverse merger was completed, but this was during the three trading
days the stock was quoted on the OTC Bulletin Board. The first trade on
the American Stock Exchange on February 22nd was $7.03, information easily
obtainable by any journalist willing to do his homework. Since opening
on the American Stock Exchange, Diomed has traded as low as $6 and
as high as $8.80.
There are other inaccurate facts
in the article, and plenty of opinionated bashing. Read the article yourself
and form you own conclusions.
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Our
Conclusion |
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The editors at the OTC Journal
wish
to extend a special thank to Christopher Byron at the NY Post. In our opinion,
the negative action on the stock has created a welcome and unexpected opportunity
for members of the OTC Journal.
Diomed was climbing like a
rocket last week, and we were convinced the stock was headed for the $10
plus mark in the short term. With the stock temporarily derailed, and opportunity
exists for investors who don't own it yet, or would like to own more before
the market valuation gets unreasonably high.
We believe investors who own this
stock in the $8 range will do extremely well in both the long and short
term. Read all the facts and make your own informed decision.
As previously promised, we now have
a link to the Equity Securities seventeen page research report on
the company, crafted by analyst Todd Pitcher. If you wish to read the accurate
facts on the company, simply click
here to access the report. You can also visit the
Profile
Archive section on our home page to find the report.
Ultimately, everyone reporting on
this company has their own agenda. Our agenda is to provide information
for investors in a positive mode. We are not unbiased- in fact we are very
biased and believe strongly in the future of Diomed.
Mr. Byron's agenda in today's NY
Post article was clearly negative, but for what purpose? We don't know,
but since many of the facts stated in the article are simply wrong, one
can assume this was hastily prepared and poorly researched.
It is rumored there is a very large
short position in shares of Diomed right now, and short sellers
may be forced to cover in the near term. Certainly, the pot shots taken
at the American Stock Exchange are completely without merit, and his comments
on the company are designed to drive investors out of the stock, thereby
benefiting short sellers.
One can't help but think back 10
years ago when Dan Dorfman, highly controversial USA Today financial columnist
and frequent CNBC (formerly FNN) guest, was the high profile whistle blower
on stocks. Every time Dorfman appeared on national television and bashed
a stock it dropped like a rock. Traders used to say they'd been Dorfed.
In 1996 Dorfman's was fired from
Money Magazine as he was being investigated by the SEC for possible insider
trading and ties to short sellers. Could this be Deja Vu all over again?
Time will tell. In the interim, this
is all short term nonsense. Ultimately, the degree to which the company
successfully implements its business plan will determine the value for
the stock, and long term investors will make or lose money on that basis.
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