First they ignore you, then they laugh at you, then they fight with you and then you win. Who said he was wrong. If you do the right thing, you don’t always win. We learned it through experience.
Nanalyze started as a popular forum to discuss technology actions. As it grew in popularity, many entertainers came to sell pennies. Over time, we discovered how scams with bombs and dumps work. We learned that some management teams do not act maliciously by issuing actions to the right and left. But regardless of their intent, OI’ll see the counter (OTC) actions almost always fail. We have lost track of how many we have seen fall and burn over the years.
Watching the penny scene, what became more infuriating was seeing who was running away. Your average person who buys a penny of stocks is not stupid. They are usually elderly people who cannot afford to lose money, but who are trying to fill a gap, where their current savings are and where they should be when they retire. For a society that claims to be so interested in helping the unauthorized, Americans allow their elders to be deceived in a multitude of ways. So we started writing about these companies.
Lifting the kimono
People who make money easily don’t like anyone interfering with it. That is why the mafia sets examples of those who do not comply. (And yes, the mob has been behind some bomb and dump scams.) Like the mob, it’s very rare for carrots to be offered, even though this has happened. (One company once asked us if we would take out a piece in exchange for shares. We didn’t.) More typically, the answer is an angry letter from a company executive immediately showing their letters. We have spoken to many company executives who, even in the face of very critical comment, will adhere to discussing the facts. The discussion is always held on a professional level and surrounds what is factual and what is not. When a business executive writes a page letter claiming your article, it’s usually because you’re telling the truth.
When we post an article, we get behind what we say. Our items are always made and insightful. If we make a mistake, we will admit it and correct it. When a company can’t raise any point of discussion, it will often play the card “stop and stop doing”.
Playing the cease and desist card
A cessation and cessation letter is an intimidation tactic used by law firms to get someone to do something. In our world, these letters will always demand that we withdraw an article or be taken to court. When the law firm finds no inaccuracies to point out, they will worry about how much reputational damage is occurring and will accuse you of acting maliciously.
We have now published about 2,000 articles. Of these, we have only eliminated four. One we agreed not to discuss publicly, so we will respect that. One of them consisted of a penny, the CEO and founder of which was an experienced lawyer. After some verbal fights, we realized that his lawyer was free and ours was not. So we took out the piece. Another was an attractive woman soliciting money from larger investors who find the “source of the youth thesis” quite convincing. You might say, “Why does your look matter?” In this case, it mattered a lot. Her beauty managed to attract a large number of allies, including a pro bono lawyer who also gave she some pro bono. Again, his lawyer was free, ours was not. The latest case involved a company soliciting funds from investors around the world and didn’t like it when we looked under its hood. This led us to a good reflection on how we handle cessation and withdrawal letters in the future.
A letter of cessation and abandonment seems to be the definitive proof that there is something rotten in Denmark. So we can take on a few things. One, the party that sends the cessation and withdrawal has a lot of money or free legal help to push something. Even if they have no case, they can waste a lot of our time. (We prefer to dedicate this time and money to building products and producing content for our paying subscribers.) They often fund their efforts by using the beautiful fat money tree they are trying to protect. Second, these people are already limit criminals, so they will participate in all the dirty tactics they can. They have no reputation for staying intact and many law firms will intervene with a desire to share the loot.
In the latter case, it was obvious that the law firm had no reason to hold on. They barely found anything in the article to quote. So we removed the article and put that letter in its place.
In dealing with this last complaint, we realized the need to develop a policy on how we handle cessation and cessation letters. As we usually do, we publish an article describing our policy to kill two single-stone birds.
Our policy of cessation and withdrawal
We have now reached a point in our growth where we should not only resort to any blown Bahstun law firm that thought of prose resembling a Shakespeare sonnet. Our network allows us to collaborate with some extremely competent legal resources and we will use them to defend ourselves if we believe that a letter of cessation and annulment has no merit.
In the past, we contacted law firms “off the record,” but we won’t do it again. Any hostile communication we receive will be posted immediately to everyone, as well as our responses. Our initial response will always be to demand what inaccuracies have in fact been made so that we can correct them. Colored language will not let us be intimidated. Anything that is really inaccurate will be gladly changed, but we can’t do it without knowing what that is. If you can’t present anything that’s really inaccurate, there’s nothing else to say. Our legal team will prepare a response letter and we will leave it.
Doing well by doing well
There is a bigger question that needs to be answered in all of this. What obligation do we have to warn investors about the pitfalls of the investor world? None, but it’s a really good way to build trust. If you save someone from losing money, you have already proven your worth. Now you have what Andreesen calls “a true fan” who will probably open the wallet down the road when they realize you’re considering their best interests. We always take into account the best interests of our readers, which is why they sign up Nanalyze Premium left and right.
Our approach to investing in technology stocks has unearthed a lot of penny stock flaws and other dubious “investments,” such as ICOs, NFTs, and crowdfunding in general. But red flags also help you avoid losing money with bigger names. Zymergen, Ali Baba and Nanox are some good examples of why the red flag approach works so well.
Everyone has it A little known 5G stock that is about to blow, but a surprisingly small number of experts tell people not to invest. We have intervened to fill this information gap. If we see that there is something that investors are demanding and that does not smell, it is our chance to demonstrate why our red flag approach works so well. Countless people have thanked us over the years for the work we do exposing dubious investments and we don’t plan to stop soon.
Investing in technology is extremely risky. Minimize your risk with our stock research, investment tools and portfolios and find out which technology stocks you should avoid. Become one Nanalyze Premium member and find out today!
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