(This is not an actionable idea.)
Libertor Medical (LBMH) is a direct-to-consumer medical products supplier with a $224M market cap.
The investor relations page of Liberator’s website shows that Wall Street Resources (WSR) is Liberator’s IR firm for non-institutional investors. WSR is very unusual for an “investor relations” firm. The WSR website boasts:
Since inception on March 13, 2009 our Trading Alerts have resulted in a 109% average annualized return. This means $100,000 invested on 3/13/2009 would have grown to $1,477,162 on 9/30/2013.
Golly, I am sure that WSR is doing a wonderful job as an “investor relations” firm and that those associated with WSR are compounding money at 109% and are on their way to becoming millionaires.
Here are some screenshots of WSR’s website:
Here is a screenshot of Liberator’s IR page:
WSR’s disclaimer
WSR has a disclaimer page that lists all of their clients. The blurb on Liberator states:
Liberator Medical Holdings, Inc. – Wall Street Resources is a consultant to Liberator Medical and has received $2,500 per month for investor relations services from Liberator Medical Holdings, Inc. since February of 2008.
To be fair, $30,000/year is not a lot of money. There is a real business involved that may very well continue to make a lot more than $30K/year. I originally shorted Liberator Medical without really thinking about the quality of the operating business. I currently have no position in LBMH and don’t think that it is a good short because sometimes promotional stocks turn into Steve Madden (SHOO). The interest on the borrow is double digits, likely because many short sellers are targeting the stock thinking that it is a pump and dump.
*Disclosure: No current position in LBMH.
Links
LBMH was written up on VIC as a long. There is a real business attached to LBMH so the VIC writeup is worth reading.
http://www.otcdynamics.com/lbmh-liberator-medical-holdings-inc-promotional-campaign-starting-feb-14-2013-256-pm-cst/#.UrxsqfRDva8 – This website claims that “Premier Stock Alerts” ran a promotional campaign on Liberator.