“MagneGas (MNGA): Insider Enrichment And Paid Stock Promotion; -92.9% Downside – Pump Stopper”, 2015
Investigation shows MNGA International partners appear nonexistent, defunct or unviable. MNGA co-founder Bo Linton partner Albert Reda jailed for fraud.
MNGA auditor was just barred by SEC for “falsified and backdated audit documents” among other misconduct. MNGA insiders fail to file SEC filings or hold shareholder meetings in timely fashion.
Santilli family related party enrichment abounds with $14.1m+ of insider compensation, ~12x more than spent on R&D, Santilli family seized total control over MNGA through convoluted preferred share voting rights.
Tests show Magnegas -30% slower, 26% more expensive. Praxair now selling demonstrably superior product nationwide. Santilli and MagneGas apparently failed in 1998, resulting in legal action and no strategic buyer
Despite 9+ years of failure, 1,100%+ dilution and -$32m of losses, with recent paid stock promotion MNGA temporarily inflated to unsustainable 113x revenue valuation. Insiders aggressively selling stock.
I believe Magnegas (NASDAQ:MNGA) is an imploding paid stock promotion shell of insider enrichment and hype with immediate -92.90% downside risk. With a stock shell purchased for $32,000 and cumulative total R&D spending of $1.18m, this team of calculated wipeout artists have carefully orchestrated a clever “reboot” of a failed 1998 penny stock story with obsolete and unviable technology while paying themselves $14.1m, ~12x more than has been invested in R&D. Through a convoluted and under the radar preferred share structure, the Santilli gang have apparently seized complete control over MNGA and can do whatever they want now without recourse.
With paid stock promotion using some of Wall Street’s worst paid touts, MNGA stock has temporarily managed to rise +344% to the obviously unsustainable valuation of 113x 2014 revenue or $120m. Investigation of MNGA’s claimed offshore partners shows unviable, nonexistent or defunct company shell. The last time MNGA hit a similar $120m valuation the stock price immediately imploded as shareholders experienced a swift and uncompromising -93.8% stock price decline.
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