You are correct AF. There is little way for any outside investor to benefit from a DGT stock offering - no matter what they have... and I think that they do have a valid thermal anomaly in the early stages of development.
It will be a laugh to see how many billions of shares they have available.
Here is a document on Canadian legal requirements which indicates that they
must have actually filed a prospectus even before as they were moving to
Vancouver - and included a lot of facts which they probably would rather
keep silent about:
books.google.com/books?isbn=1553672070
Where is their prospectus? It should be enlightening to read it - in the
context of what we know to be historically true.
We tend to forget that it is entirely possible to build a deliberate scam on
top of valid energy anomaly (especially an anomaly discovered and patented
by someone else).
Even if everything which DGT showed the world on the Internet in Italy was
basically accurate as to the thermal anomaly, a stock offering in November
is premature and doomed by circumstances. This can only be a net negative
for the rest of the field. It is called "poisoning the well".
DGT are a minimum of three years from a commercial product and much longer
from mass production. They have no valid patent. Their process seems to
infringe on half a dozen patent applications, which have preceded them. No
VC will touch them. The lifetime of the unit is unknown, even if the energy
is strongly anomalous for a few days. The list goes on-and-on.
If they had anything valid at all, and let me repeat - I believe that they
do have something valid but it was invented elsewhere - then they should
proceed to try to understand the phenomenon better through a University or
Government, and that happens only by abandoning a brain-dead business plan,
which is most of the problem.
It is the kind of business plan that a scammer would device - not a
scientist.
From: Analog Fan
>"There are no short opportunities either for this kind of
pump and dump."
>Read that sentence over to yourself a dozen times or so.
Eventually you'll realize you just logically said A & !A.
Jones analysis is essentially correct. It's very difficult
to short Canadian pump and dump stocks. Most brokerages will not accept
short orders for penny stocks. And in general, markets can stay irrational
for longer than you can stay solvent. It doesn't matter if the stock crashes
after you've already had to cover a margin call.
On the larger topic, fraud in Canadian OTC/"wildcat" markets
is rife, and the penalties are few. Canadian exchanges would be the ideal
location for a fraudulent cold fusion enterprise, and the level of corporate
disclosure and due diligence is not comparable to US exchanges. I doubt we
will get to see many details of Defkalion's technology and customers, and I
also highly doubt that their roadshow includes any actual technology
demonstration beyond a Powerpoint deck.
BRE-X is the most famous example of a Canadian stock fraud-
a $6 billion mining company built entirely on elaborate faked test results.
After the stock crashed, the RCMP eventually dropped all charges and other
civil cases failed, so nobody went to jail over it. The founder was tracked
down years later in the Bahamas by armed thugs and died shortly afterwards.
It took well over a decade for the entire BRE-X story to play out.
The recent sorry tale of Zenn Motors (and their claims for
EESTOR) could be headed for a similar fate based on the postings at
http://theeestory.com
AF
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