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News > Nanowerk Business News >
| Posted: April 29, 2007 |
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Revealing Background Of A Nanotechnology Penny Stock
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(Nanowerk News) Highlighting some of the hype on nanotechnology investments, Barron's Online carries an unfavorable report on nanotechnology company Nano Chemical ("Giving New Meaning to Green Revolution").
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On Wednesday, Nano Chemical took out a full-page New York Times ad promising riches to its investors: "NCSH is the right company at the right time for savvy investors looking for big gains."
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Barron's Technology Trader Bill Alpert did some digging. He found that newly appointed CEO Alexander H. Edwards III was named after the company borrowed $300,000 from John Stanton, an accountant who has controlled several of Edwards' previous employers. Edwards payed $50,000 in 2003 to settle civil fraud charges with the SEC that alleged he faked a surgical-supplies company's sales. Its investment banker, Robert Esposito, used to run nightclubs and was arrested for selling cocaine; his corporation bankrolled the $232,103 Times ad. Investor Raymond Carapella has convictions for armed robbery, retail scams, and penny stock pump-and-dump frauds.
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The company sells 'nano-enhanced' Green cleaners and lubricants, which CEO Edwards tells Alpert are "as good or better than non-environmentally friendly products," so why not buy them? He says the aforementioned shady investors have no say in company management, and enough time has passed since his own SEC mishaps to make them non-germane. Shares dropped 27% Friday to $0.435 on six times daily volume.
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