The Hot Biotech Penny Stock up 1,000% Due To Modified Old Press Releases

In honor of Radient Pharmaceuticals Corporation (RPC)’s 1,000% spike from 25 cents/share to $2.50/share all in the past few days, their 5 press releases in the last week and BiomedReports.com 4 feature articles on the company, I’ll have a series of articles in the next few days exposing this junky biotech company for the sleaze that basic research and their SEC filings prove they are…the latest example of the exact kinds of of ideal trading setups I outline and teachi in my 10 instructional DVD packages, most notably the 12-hour TIMfundamentals Part Deux and 6-hour PennyStocking Part Deux…and as PennyStocking Silver subscribers and TIMalert subscribers know, I am short 35,000 shares at 2.27 because I do believe this stock will crash over the next few days once reality sets in and the company might get lucky enough to pull off some ridiculously dilutive financing…due to such a financing being the sole reason to create such a quick stock spike…happens again and again and again and again, but the greedy, gullible and stupid fail to realize it…in fact, the hyping strategies employed here bear a striking similarity to good ole Genova Biotherapeutics Inc. (GVBP) (see my dozen or so articles on that pile of trash…their financing never happened and the stock got halted by the SEC before crashing 99%+) whose chart likely foreshadows what will become of RPC over the longterm:

gvbplongterm

Given all the hype on RPC, many believe this company has a bright future…I intend to prove that this is just the latest in a long line of sketchy biotech companies that are going nowhere fast and that the only reason why their stocks spike at all is due to the efforts of a few people who understand how to lure in the greedy and gullible.

Download a PDF version of this post.

There is a TON of evidence in this case so I’ll start out with the easy stuff then work our way up to the truly detestable…

Exhibits A & B: Like GVBP, RPC is modifying old press releases and making them seem as if the news is new and breakthrough:

Today’s press release says , their fifth in as many trading days…headlined by the title “Radient Pharmaceuticals Monetizing China-Based Jade Pharmaceutical Division” and continuing:

TUSTIN, CA–(Marketwire – 04/12/10) – US-based pharmaceutical company Radient Pharmaceuticals Corporation (RPC) (AMEX:RPC – News) announced today it anticipates prospective purchasers or financiers will complete due diligence for RPC’s China-based subsidiary Jade Pharmaceutical, Inc. (“JPI”) by the end of May 2010.

RPC expects JPI will be contractually positioned to move forward with the completion of a sale or financing by the end of the third quarter 2010. RPC currently owns approximately 98% of JPI, which as part of RPC’s deconsolidation process, is noted as a special asset on RPC’s balance sheet and valued at approximately US$20 million as of September 30, 2009.

According to Douglas MacLellan, Chairman and CEO of Radient Pharmaceuticals Corporation, “We are extremely pleased to move down an orderly path to maximize the monetization of our China-based asset. This is in accordance with our original deconsolidation plan and is in the best interest of the company, our subsidiary and RPC shareholders.”

That sounds great except they’ve been trying to unload Jade since last December…they seem to have forgotten they put out a press release on 12/18/2009 (or maybe they just thought none of the typical penny stock morons would bother checking) stating:

TUSTIN, CA–(Marketwire – December 18, 2009) – US-based pharmaceutical company Radient Pharmaceuticals Corporation (RPC) (NYSE Amex: RPC) announced today its China-based subsidiary Jade Pharmaceutical, Inc. (“JPI”), of which RPC owns approximately 98%, has signed a strategic advisory agreement with Security Research Associates, Inc. (“SRA”).

Under the terms of the agreement, SRA will provide advisory services to RPC for the sale and/or financing of JPI, with the goal of maximizing the monetization of this operating asset. As of RPC’s Q309 financial statements, JPI is valued at approximately $20.5 million on RPC’s balance sheet.

SRA is a boutique investment banking and capital markets firm that supports fast-growing, publicly-traded companies in the small cap arena. SRA is specifically focused on companies having between a $50 million — $2 billion market capitalization in the technology, healthcare, consumer and cleantech sectors.

According to Douglas MacLellan, Chairman and CEO of Radient Pharmaceuticals Corporation, “We are extremely pleased JPI has retained SRA to assist them in executing a sale or strategic financing, which is currently slated in early FY2010. Our goal is to maximize the monetization of this operating asset on behalf of the shareholders of JPI.”

So let me cut through the PR bullshit and summarize: today’s press release says they have failed to find a buyer for the past 5 months and instead of any sale happening now, its been pushed back to happen “by the end of the third quarter”…that initial sale news from December was soooooo important the stock SURGED from 22 cents/share to 25 cents/share, whoooooooo!!! (Sarcasm)

And how can we forget Friday’s blockbuster press release announcing “Radient Pharmaceuticals Expands Distribution Partnership With GenWay Biotech; Company to Commercialize RPC’s Onko-Sure Cancer Test in Russia and Former Soviet Republics”

TUSTIN, CA–(Marketwire – 04/09/10) – Through its US-based subsidiary AMDL Diagnostics Inc., Radient Pharmaceuticals Corporation (RPC) (AMEX:RPC – News) announced today it has extended its partnership with GenWay Biotech Inc., signing an exclusive 5-year marketing, sales and distribution agreement with GenWay Biotech Inc. for the commercialization of RPC’s Onko-Sure™ in vitro diagnostic cancer (IVD) test in Russia and the former Soviet Republics.

Under the terms of the agreement GenWay Biotech is responsible for the marketing and product sales in this new market. Radient Pharmaceuticals signed a similar agreement with GenWay Biotech earlier this year which gave GenWay Biotech the exclusive rights to market, sell and distribute Onko-Sure in seven other international markets.

Only problem is that same basic press release was issued on December 21st, 2009 stating:

Under the terms of the agreement, GenWay Biotech Inc. has non-exclusive rights to distribute RPC’s Onko-Sure™ in vitro diagnostic cancer (IVD) test in the European Union, Middle East (excluding Israel), United Kingdom and Russia

TUSTIN, CA–(Marketwire – December 21, 2009) – Through its US-based subsidiary AMDL Diagnostics Inc., Radient Pharmaceuticals Corporation (RPC) (NYSE Amex: RPC) announced today it has signed a 3-year marketing, sales and distribution agreement with GenWay Biotech Inc.

Under the terms of the agreement, GenWay Biotech Inc. has non-exclusive rights to distribute RPC’s Onko-Sure™ in vitro diagnostic cancer (IVD) test in the European Union, Middle East (excluding Israel), United Kingdom and Russia; and is responsible for product sales and marketing in these markets. Radient Pharmaceuticals signed a similar agreement with GenWay Biotech earlier this year which gave GenWay Biotech the exclusive rights to market, sell and distribute Onko-Sure in Canada.

So the contact went from 3-year non-exclusive to 5-year exclusive, which is a positive, but the new PR claims Russia is new…and yet Russia is very clearly mentioned in the December press release…and let me tell you, that December really spiked the stock, RPC went from 25 cents/share to 25 cents/share on volume of 1.5 million shares!!

Woooohooo!

OK so the market tells us the former press release is meaningless…I wonder what could be the cause of all the excitement now? Hmmmmm…even more interesting is that 12/21 press release somehow didn’t make it onto RPC’s press page:

rpcdec

So basically, RPC is up 1,000% in the past few days on less-than-stellar-already-proven-to-be-meaningless-once-before press releases….hmmmmm, wait there’s more coming….only TIMalert subscribers and PennyStocking Silver subscribers will get the important research first!

Posted in idiots, Short Selling

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5 comments

Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

  1. Guest

    Careful now, RPC has gapped up every single day of the run up. Remember what happened to Cody. CNLG was also a peice of crap.

  2. Anonymous

    I shorted some at $2.25 before this post, then shorted some more at $2.20 after this post. Maybe it will spike more, but that’s just an opportunity to improve my average entry price.

  3. Dwight

    About time the Sykes of old is back. This is what you call SuperBowl hour. 35K shares short on a stock up 1,000 percent. Not many would have the balls to do this type of trade.

    This is going to be a 20K plus profit day for you. 2.20 intraday is about to fall. Of course you’ll leave 20 K on the table. Preserving profits is what I like about your style.

  4. Pingback: My 7 Best Stock Picks For Tomorrow

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