Zenosense, Inc. (ZENO) shares have been ripping since February 1st launching from 25 cents with an initial 2 week rally trading quickly to $1.70 or a 500% + move. This February high volume rally was followed by an explosion in price on April 4th that smashed through the highs and rocketed to $3.80 per share catching short-sellers flat footed. It also caught the attention of legit investors who wanted to know what all the noise was about.
This April buying was clearly a coordinated effort by promotional pumpers who continue to take money out of investors pockets with pump-and-dump schemes. If you look at the chart below you can see the pump, then the dump, and know this is not good for anyone in our industry. Shares eventually fell back to fair value where they started in February at $1.70. The back end of this move, where shares fell from $4.00 to 75 cents, is where much of the damage was done. This is the where the stock promoters get paid – this collapse is where the real money is had. Not only do they stop buying but they get short illegally without getting a proper short borrow, and the broker who clears the trade is in on the scheme.
Let’s ask a question: If you were an investor looking to enter this market and you came in on February 15th to buy some value shares under $1.00 and you were made to pay up to $1.70 how would you feel? You would be pissed, but if you just accepted this was part of the deal and held on until say Monday, April 10th because you saw shares trading at $4.00, and you gave an order to your broker to sell your 25,000 shares, you would expect to make a profit on your trade, event though you got clipped on the way in. You would expect they would “never ” clip you on both sides? But they do – and they do it often.
If your broker comes back (or if you use a basic TD AmeriTrade execution tool and did this yourself) and says I sold these shares at $1.80 you would question if the game was rigged. This is what happens, and when the pump and dumpers come in they leave nothing but scorched earth. They get in, get out and move on to the next symbol.
I often wonder what it would be like to do this job? I wonder if you have veteran pump and dumpers, guys who are like Alcatraz life-time criminals who know so much about the system that they thrive in it alongside the devil. Having these players in the game exacting tolls on unexpected investors weakens the system, while they hide in the shadows. Have you ever spoken to a P&D Trader? I never have and I have been trading since 1978. They make so much money illegally and they are experts at flying under the radar. They destroy small companies each and every day.
Zenosense’s primary focus, through joint venture ownership in MIDS Medical Ltd., is the development of a cost-effective, hand-held Point of Care rapid cardiac diagnostic device, MIDS Cardiac™, and is also the holder of an exclusive global license agreement to develop and market effective medical devices for use in hospitals and primary healthcare settings targeting the early detection of both deadly bacteria and certain cancers in the exhaled breath of patients.
By the way, this was the important driver for the company in a press release from October 2016. It is such a shame a good company like this gets caught in these promotional scams. If anyone at the company had any association with the stock promoters, they should be severely punished by regulators. In most cases, the company has no idea.
Zenosense, Inc. (ZENO) is a healthcare technology company primarily focused on the development and commercialization of MIDS Cardiac™, a Point of Care (“POC”) handheld device for the early detection of certain cardiac event biomarkers to significantly accelerate the triage, diagnosis, treatment and disposition of patients reporting chest pain and with suspected acute myocardial infarction (“heart attack”), provides an update on the bench reader development.
The company said in the recent PR, “MIDS Medical Limited (“MML”), our 40% joint venture based at Sci-Tech, Daresbury, UK has provided the Company with a report on progress of the development of MIDS Cardiac™, the first development of MIDS, a POC technology intended to deliver medical laboratory analyser accuracy in a hand held device around the size of a smartphone. The patented MIDS technology works by detecting the magnetic signature of magnetic immunoassay nanoparticles, rather than most conventional technologies which typically optically detect a colorimetric signal, often photo luminescent, from those particles. MML and the Company believe that the MIDS nano magnetic detection system can be applied to a wide range of diagnostic immunoassay tests. This is expected to deliver far higher levels of sensitivity and accuracy at the POC, with the added advantages of a fully automated test from a small finger prick blood sample”.
The message from the company is clear, and they have time now to prove out the effectiveness of their product, but it was not without unnecessary pain for common shareholders. This was a zero sense pump by promoters who didn’t need to hijack money from investors during the volatile days of April 10th. This run up was solely created so they could scalp an unsuspecting inexperienced trader who gets caught in the crossfire. They did not need to scalp the money, they already have plenty; they seem to do it for the love of the game, which to me makes zero sense for a stock like Zenosense (ZENO).
My suggestion is for everyone to dig deep in the age of information and transparency and root out these scoundrels. Do not accept this as a toll to trade, it weakens the markets we love.
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