The news of Shaq’s involvement with NXT Nutritionals Holdings Inc. (NXTH) was announced a few weeks ago, but I psot it now because we’re just a few days away from when Shaq can begin selling…
See TheStreetsweeper’s comments on the deal:
NXTH staged its biggest comeback in early December, briefly jumping above $2.50 a share, after the company hired legendary basketball star Shaquille O’Neal to become an official spokesman. But that deal came at a high price – representing the prospect of yet additional dilution – for ordinary shareholders.
By the end of 2012, regulatory filings show, NXTH must give O’Neal 3 million shares of company stock in exchange for his publicity services. He was scheduled to receive the first 1 million shares back in November, filings show, and can start selling them at the beginning of February. At that point, he will be free to sell up to 20,000 NXTH shares a day (but no more than 100,000 shares a month) if he chooses to do so.
Clearly, NXTH could face some intense selling pressure – potentially crushing ordinary shareholders – if private investors like O’Neal start dumping their stock next month.
C’mon Shaq, aren’t you rich enough? Don’t you have any better financial advisors than your current ones who got you into bed with such snakes? Dude, all you gotta do is read my past articles HERE and HERE or watch my TIMfundamentals Part Deux DVD package where I spend over an hour dissecting why NXT Nutritionals Holdings Inc. (NXTH) (in which I have no position whatsoever, just a responsibility to cut through the BS) is such a blatant pump & dump.
You don’t want to listen to me, listen to more from independent, supreme fact digging TheStreetSweeper.org to see what they say about good ole NXTH & their horrific business:
During the first nine months of 2009, NXTH’s sales actually plummeted by almost 60% — and its gross profits fell substantially – as the company fielded smaller orders from two of its major distributors, while offering generous discounts and higher “slotting fees” to those who continued to stock its products. The company wound up recording a $16.1 million loss for the third quarter alone, partly due to its weak operational performance but primarily caused by a massive charge for extinguishing old debt instruments and replacing them with new ones worth far more to its noteholders.
Nevertheless, stock promoters keep urging investors to snap up NXTH shares.
Charles Payne, a big-name commentator on Fox Business Network, has by now issued at least two bullish recommendations on NXTH with predictions that the stock could rocket to $5 a share. More recently, Jarret Wollstein – a newsletter writer who portrays himself as one of the best stock-pickers in the industry – has topped that call with forecasts that NXTH could soar toward $10 a share by the end of the year.
Interestingly, both Payne and Wollstein received payments for their stock coverage from the same obscure “media” firm. In Wollstein’s case, a buried disclaimer shows, that media firm paid for the coverage with money received from an NXTH shareholder “who may or will sell shares of the feature company at or about the time of this report.”
Meanwhile, Wollstein listed several reasons why ordinary investors should be snatching up NXTH shares instead. He claimed that NXTH employs a topnotch management team led by Pepsi alum Michael McCarthy, for example, even though Pepsi itself could find no record of McCarthy’s past appointment there. He also stated that NXTH boasts “fast-growing sales” that are “increasing on a daily basis,” although the company’s own financial reports have since shown otherwise.
In the end, Wollstein blamed any weakness in NXTH’s share price on short sellers – rather than poor fundamentals or looming dilution – and portrayed the stock as a real bargain that’s poised to become one of the biggest small-cap winners of the year.
“This profit-taking has created a spectacular opportunity – and probably the last one – to get in at today’s bargain-basement price,” Wollstein wrote on Nov. 11, even as the stock began another rapid slide. “That’s why I’m strongly urging investors to get into NXT Nutritionals now, while the price is still dirt cheap.”
The promoters behind NXTH are some of the most unethical I’ve ever seen–Charles Payne already has an SEC rebuke for penny stock promotion–and I WISH there were shares available to short…too bad these promoters have been around so long, they’ve locked up the market…maybe somebody should lock them up? Or Shaq should just beat the shit out of them.
Posted in Celebrities, Manipulation