A company with all of $100 million "valuation" smells a lot like the frothy end of a bubble especially since this article follows another upstream describing record margin accounts.
Posted on 04/28/2021 3:39:12 AM PDT by gattaca
Shares of a New Jersey-based deli owner that was recently valued at more than $100 million despite the fact it only operates a single store have been delisted from the stock market.
Cromwell Coulson, chief executive of the OTC Markets Group, the over-the-counter exchange where deli owner Hometown International’s shares had traded, tweeted late Wednesday that they were delisted “for not complying with the rules.”
The move comes six days after the Paulsboro, NJ-based sandwich maker was singled out in a client letter from hedge fund manager David Einhorn, who called the company an example of bizarre and risky investments that are threatening to ensnare small investors.
“The pastrami must be amazing,” Einhorn wrote of the deli.
The modest purveyor of meats and cheeses had achieved a market capitalization of more than $100 million despite the fact that its sole shop — located in a sleepy hamlet across the Delaware River from Philadelphia International Airport — only logged sales of $35,000 over the past two years, according to its annual filing with the Securities and Exchange Commission.
OTC’s Coulson said late Wednesday that shares of the company — whose shop is called “Your Hometown Deli” — have been marked by OTC Markets’ OTCQB over-the-counter exchange as “CE,” which stands for the Latin phrase “caveat emptor,” which means “buyer beware.”
(Excerpt) Read more at nypost.com ...
The threat to small investors was probably minimal. This has all the characteristics of a money laundering operation.
$35,000 worth of pastrami in two years? That's not even trying.
But the NJ AG and the DoJ will be right on it!
And the OTC MG only delisted the stock since they were embarrassed ... not that the OTC markets even bothered to investigate.
A company with all of $100 million "valuation" smells a lot like the frothy end of a bubble especially since this article follows another upstream describing record margin accounts.
There was another article on CNBC a couple of days ago about the company’s $15,000 per month consulting contract with a company owned by a family member of the CEO. $35,000 in sales over two years and they’re paying $15,000/month to a consultant? LOL. That’s not a “bubble.” It’s a classic New Jersey money laundering racket.
Do you even know anything about the trading activity in this stock? I don’t know much, but what m I do know is that it’s market cap ran up over $110 million a few months ago while fewer 1,000 shares were changing hands on an average day. The CEO is the largest shareholder. These are not the characteristics of a stock whose value is being bid up to ridiculous levels by speculators trading in margin accounts.
If we are in a market topping, considering our national debt, private debt, and lack of dry powder in the Fed we should be especially concerned in view of the administration and its disposition not to let a good crisis go to waste.
A great philosopher once said that
I’ve never understood why “those guys” were so prevalent in some neighborhoods, and completely absent in others. A couple miles East of me, in Philadelphia, there are guys everywhere. In my suburban neighborhood, none. Every once in a while one will buy a home around here, but they never do business. I know what my folks would do in a “pinch”, but I’ve never heard of it being necessary.
They knew which areas they could operate in and get away with their actions, and they knew which areas would highlight them, like a deer in headlights.
Kind of like the Mao concept of moving amongst the people like a fish in the sea, where you are all but invisible.
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