As I explained in a blog post two days ago when it was discovered by a reporter that the president of Options Media Group Holdings, Inc. (OPMG) had a criminal record, my only trade on this stock was to BUY THE BREAKOUT at .0488 roughly a week after I posted my initial blog post featuring all my research taken straight from the company’s 5/17/SEC filing.
Coincidentally, in the last two paragraphs of that research post I specifically stated the stock was not a short and that it was a potential buy and that I would buy the breakout…oh yes I followed my predictions to a T
But the very night I was long the stock, a blogger who I have NEVER met, communicated with or talked to from a small Florida newspaper discovered the felony charge and posted it at roughly 6:25am EST.
Yet somehow people still think I wrote my report to short the stock and create a “smear campaign”…in fact OPMG sent me a cease and desist letter alluding to exactly that and early next week I’ll post my legal response publicly…just as I have done when Shaquille O’neal threatened me, when Oliver Velez has threatened me, and when RedChip threatened me.
In each case, we responded and those threatening us disappeared, never to be heard from again…in Shaq’s case, his stock’s price dropping 95%+.
In each case I’ve made it clear that I ALWAYS research publicly available information so if a person or a company doesn’t like what I say, perhaps they should look in the mirror and their own legal filings.
I currently have no position in OPMG, and I would say it’s a potential buy, but only subscribers of my 4know why I will not say that anymore. It has nothing to do with the cease & desist or the fact that when I tried asking questions on the company’s conference call, I was cutoff not once but twice, something that had happened to no other caller. (Tip to all wannabe companies out there, if you can’t face your critics in public, especially when they are citing information from your own legal filings, it doesn’t look too good for you)
No, no, I’ll leave the stock analysis forsubscribers and only…what I want to focus on is that I got the CEO to admit there will soon be roughly one billion outstanding shares (Tp: Good luck getting over 10 cents/share with that many shares out there) and part of a question I did get to ask OPMG’s CEO before I was rudely cutoff:
As posted on IHUB, here was my Q&A with OPMG’s CEO:
Timothy Sykes Question: Doesn’t NetQin Mobile Inc (NQ) actually own the license for the Phoneguard application?
Answer: CSI actually owns the Software and OPMG has Exclusive LICENSING for it for North and South America.
OK, sounds simple, right?
Unfortunately OPMG’s two most recent SEC filings complicate the matter as in the 5/17 filing, NetQin is mentioned 61 times, including screenshots of the licensing agreement for Phoneguard and passages like this:
In April 2010, PG Acquisition Corp, Inc. (“PG”), a wholly-owned subsidiary of the Company, entered into an Asset Purchase Agreement and Sublicense Agreement with Cellular Spyware Inc. (“Cellular”), and its majority shareholder. We also closed the acquisition in April 2010. Cellular was a licensee of certain anti-virus software (the “Software”) and had the right to sublicense the Software under an agreement with NetQin Mobile Inc., a large Chinese company.
In fact the 5/17 filing says there were 3 agreements with NetQin:
Netqin Master Licensing Agreement dated August 20, 2009
NetQin Sublicense Agreement dated April 16, 2010
Amendment to Netqin Master Licensing Agreement dated April 27, 2010
Which concurs with a NetQIN PR from April 2010 that says the agreement is not only for PHoneGuard by also DriveSafe, OPMG’s precious anti-texting software:
Additionally, Options Media and PhoneGuard have reached a verbal agreement for Options Media to acquire a sublicense of PhoneGuard’s U.S. and Canadian license from NetQin for a software solution which prevents drivers from texting while driving. As of today, 21 states in the U.S. have banned texting. PhoneGuard intends to launch this product in mid-April.
OPMG’s 5/17/2011 filing goes so far to say how reliant they are on NetQin’s software:
Concentration of Software License: The Company is 100% reliant on its software sublicense with NetQin Mobile, Inc., for anti-virus mobile software. The Company is required to sell 1,000,000 units of the software each year beginning May 1, 2010, or it may lose its exclusive right to market the product within the United States and Canada upon notification by the licensor within 30 days of the end of each annual period.
But now in the 5/23/2011 SEC filing, there is not one mention of NetQin (do a search, it’s fun!), compare that same paragraph regarding Cellular Spyware (whose founder remember is convicted felon Anthony Sasso who was just asked to resign the other day when the FL blogger discovered his criminal record which somehow OPMG didn’t know about or at least didn’t disclose)
On April, 16, 2010, through our wholly-owned subsidiary PhoneGuard, Inc., the Company entered into an asset purchase agreement and sublicense agreement with Cellular Spyware Inc. The asset acquisition gave the company rights to the name PhoneGuard whereby the Company then entered the mobile and smart phone application market. PhoneGuard acquired certain assets of Cellular Spyware for an anti-virus and anti-malware software product and became the exclusive marketer within the United States and Canada. In addition to anti-virus and anti-malware software, in August 2010 the Company also acquired an exclusive license for Cellular Spyware’s rights to a state-of-the-art anti-texting product in North America, Central America and South America.
And remember in the 5/17/2011 filing, that same date April 16, 2010 is listed as “NetQin Sublicense Agreement dated April 16, 2010″
So what happened to the NetQin deal in just 6 days between SEC filings that made OPMG drop their mentions down from 61 to ZERO despite contracts that were signed over a year ago?
And why did the CEO say this PhoneGuard system is not licensed from Netqin when their old SEC filings say exactly that?
And why in this November 2010 press release does the same CEO describe PhoneGuard as “Powered by NetQin, PhoneGuard is the new wave of protection technology…”?
Remember in the 5/17/2011 filing OPMG says “The Company is required to sell 1,000,000 units of the software each year beginning May 1, 2010, or it may lose its exclusive right to market the product within the United States and Canada upon notification by the licensor within 30 days of the end of each annual period”
So my question to OPMG’s CEO and shareholders, given that OPMG DEFINITELY has not sold 1 million units May 1, 2010 – May 1, 2011, NetQin has the right to terminate the sublicense within 30 days of the end of each annual period, OPMG’s latest SEC filing on 5/23 has ZERO mention of NetQin down from 61 mentions in a filing just 6 days before and most importantly, the CEO told me they’re not licensing from NetQin, has NetQin in the last few days notified OPMG — sometime between 5/17 and 5/23/2011 — that they lost the exclusive North American license to the PhoneGuard software?
If NetQin has terminated OPMG’s exclusive license to PhoneGuard which remember the company describes as “Powered by NetQin, PhoneGuard is the new wave of protection technology…” in this key November 2010 press release (not to mention they were selingl the software for $20, not $30), what the heck product is Bieber promoting?
That was my 3rd question for the CEO on the conference call, but I got cut off so now I pose the question publicly here….subscribers and , you know my take on the actual OPMG stock.