Holding the hot potato?
Being long in BVSN simply isn’t a good idea. Their business has shrunk for 10 years, they’re loss making, the only thing that has been going on is a massive touting campaign by Jonathan Lebed and the NIA. But there are many insiders who know the shares aren’t worth anywhere near the present market cap:
- The CEO owns 36% of the stock (5% directly and 31% through Honu Holdings LLC) – about 1.6 million shares.
- Marlin Capital owns 5.5% (filing on 21 September 2011, the exact same day Lebed started pumping BVSN on his personal website)
- Palo Alto Investors owns 6.3%, flied on September 30 of last year
- The associates (referrer and client) mentioned by Lebed and NIA in their disclaimers
Some of these was selling a little and took the stock almost 10 points lower in minutes. It’s rebounding, but don’t expect that to last.