As I posted in both articles, somebody paid $300,000 for an absurd-promotional mailer saying CrowdGather was actually takeover bait for Google….which is utterly laughable as you’ll see from reading one of my interns research on CRWG posted below….which is why the stock has already fallen 50%+ from its pumped highs and will likely fall another 50% or 99% before anyone other than subscribers to my 4know what hit them! (I am not currently short the stock, but I could be in the future, only my subscribers and will know in real-time)
You see When Andrew Warner saw my followup piece with Arrington, he suggested CRWG’s CEO Sanjay Sabnani do a live debate with me and I was 100% into it…unfortunately Sanjay refused which is why I must present my OVERWHELMING EVIDENCE below (all done by interns who have watched whose horrific chart and story I detailed in this post and since CRWG has very little/if any cash and is paying just about every company in shares of stock….well, be warned.and learned what kind of scum exists in penny stock land aka how to dig through SEC filings where the scum actually admit to being scum, taking advantage of the fact that most people don’t know how to read SEC filings) and warn alllllll the companies Snajay and Crowdgather have acquired and are planning to acquire that in my expert opinion, CRWG’s stock will end up below 1 cent/share just like EXACT-SAME-BUSINESS-MODEL-AND-ETHICS-LACKING-COMPANY-ZVUE-HOLDINGS
Download a PDF version of this post.
These companies below have all been acquired by the CRWG, their future and potential PUMPED in countless press releases and mailers sent to millions of people and for their insiders to cash out, they’re gonna have to DUMP their shares of stock whenever they the shares become unrestricted….as you’ll read below September 13th CRWG is gonna get annihilated, just like CLRH did (dropping from $1.75 to 25 cents/share in just 4 days, just days after a similar CRWG-propaganda-esque $500,000ish promotional mailer had been disseminated!), as 2+ million shares look to become unrestricted on that day.
Here’s one of my better interns posts below, all publicly available info…Sanjay and his lawyers make it too easy to predict….Sanjay if you’d like to debate me, contact me or contact Andrew Warner, don’t bitch out like a typical penny stock pump & dump CEO would…if you’re innocent, prove it…if not, proceed directly to hell.
Here’s the gist of one intern’s take:
Net loss 2008: $410,175
Net loss 2009: $2,439,007
Net loss 2010: $3,428,894
And here’s a well written piece by Dave L.:
You would think that CRWG would be gone by now, but they are still a functioning shell posing as a real company. Sanjay has been hard at work and trying to get his stock price up for the next round of funding or selling.
Here’s what they’ve been up to since Tim’s last post.
CrowdGather released their prospectus on June 25, 2010. I’m going to list just a few excerpts from it, and you tell me if this sounds like a company that you would want to invest in:
• We have a history of net losses which will continue and which may negatively impact our ability to achieve our business objectives.
o April 30, 2010, we had revenue of $309,781 and a net loss of $3,429,694 compared to revenue of $112,546 and a net loss of $ 2,439,007 for the year ended April 30, 2009.
o Dave Note: Increasing net loss is not a way to operate a viable business
• We may be unable to attract advertisers to our online forums.
o Dave Note: This is just before they compare themselves as competitors to Google, Microsoft and Yahoo
• If we are unable to compete effectively in the forum sector of the Internet industry, our business will fail.
o Dave Note: If you didn’t know, this company is trying to make a living by selling online forums, essentially a free area of the internet
• If we are not able to retain the full-time services of senior management, there may be an adverse effect on our operations and/or our operating performance until we find suitable replacements.
• Our auditors have questioned our ability to continue operations as a “going concern.” Investors may lose all of their investment if we are unable to continue operations and generate revenues.
Dave Note: These next two are my personal favorite
• The costs to meet our reporting requirements as a public company subject to the Exchange Act of ’34 is substantial and may result in us having insufficient funds to operate our business.
• Our compliance with the Sarbanes-Oxley Act and SEC rules concerning internal controls will be time consuming, difficult and costly.
God, I could go on and on. Their prospectus is horrendous and I cannot imagine anyone investing in this shell of a company with the hopes of making any real money. Unless you plan on using Tim’s rules which can be found here and learned about here
Well, they must have a grand scheme at raising capital right? Per the company,
“We believe that our current cash and cash equivalents and anticipated cash flow from operations will not be sufficient to meet our anticipated cash needs for the near future. We will seek to sell additional equity or debt securities or obtain a credit facility. The sale of additional equity securities could result in additional dilution to our stockholders.
Apparently buying companies is also their way of generating revenue in this market space. Hey, their competitors Google and Microsoft do it (eye roll).
In June 2010 the company continued to shell out shares like they are going to be worth something someday. CrowdGather “merged” with Adisn, Inc. for the price of 4,621,849 shares of CRWG stock valued at 1.018 at the time of the inking; with an additional $1 million worth of stock shelled out if Adisn meets certain escalators in the contract. God I feel like I’m writing about an NFL contract…
And this still isn’t the latest from our favorite shell. Here is even more proof that has no real money to speak of. On July 26, 2010 CRWG touted purchase of Lefora for $1 million dollars and how it is going to expand their reach blah blah blah…
It’s nothing more than a shuffling of nearly worthless stock. Per CRWG’s latest SEC filing,
“The total purchase price of the Websites and the associated assets is Nine Hundred Ninety Thousand Dollars ($990,000) payable to Lefora in 970,859 shares of the Registrant’s common stock…”
The additional $10k comes from an additional, surprise surprise, issuance of 9,804 shares for some software licensing. Oh, and instead of actually paying the employees of Lefora, they are paying them in…everyone say it with me, stock! $300,000 worth of stock that is. Apparently one of the employees wasn’t too happy with receiving only stock as compensation and bitched enough to squeeze $500 a month out of CRWG. With over $3 million in losses, I’m surprised they have $500 in cash reserves to pay that joke.
On the plus side, we at least know when CRWG shareholders next big sell off is. Again, per the prospectus, 2,663,281 shares may be sold 60 days after July 13; which makes September 13 the day of the big sell-off. The coolest part of reading the SEC filings is that you can actually see who is going to be doing the selling and who CRWG shelled out shares to. Not surprising, about half of the list is stock promoters. I know you all keep asking me who the promoters are, so here are a few:
• Roland Perry from Institutional Stock Analyst, Inc. (75,000 shares) – They manage Internet Stock Review, the National Stock Review, the Biotech Stock Review,
the Hollywood Stock Review, IA’s Special Situation Research, the Private Equity Stock Review, the Solar Stock Review, Organic Investor and the VOIP Stock Review.
• Barry Gross from Gross Capital, Inc. (61,500 shares) –
• Laurel Moody from Corporate Profile LLC (120,000 shares) – As much as I love the ladies, be sure the wife is not around when you’re peeping this site.
As you can see from the bleeding of money, over $3 million in net losses with over $6 million in deficit, recent “purchases” of companies and the looming sell off of a bunch of shares, it can be only a matter of time before Sanjay starts his next round of pumps.
Actually, they have already started