We have long suspected there are some unscrupulous parties promoting the stock of Echo Therapeutics (ECTE), often to unsophisticated retail investors who don’t know any better. Yesterday, someone illegally created a website designed to fool investors to believe our widely followed website Valuewalk.com had written a favorable story on ECTE.
The creator of this fake website went to great lengths to fool people by, among other things, picking a domain name with the name Valuewalk in it and using virtually the exact logos, format, font and other style points that the real Valuewalk website uses – that is undoubtedly illegal but we hate the litigious type so instead of threatening suit we decided to call it out. In addition, the story on the fake website was filled with incorrect and misleading information. The truth is that earlier in the day the real website valuewalk.com had published a story that suggested the stock price of ECTE was wildly overvalued.
While we are shocked by the deviousness of the pumper who illegally created this fake story we guess these are the types of things people resort to when the facts are not on their side and when they are desperate to prop up a stock price.
We believe ECTE or a big investor in the company is desperately trying to raise equity this week to avoid a NASDAQ delisting next Tuesday. ECTE also needs more cash to fund its operations. It has also been reported that after being raided by the FBI, Platinum Partners will be liquidating some or all of its funds.
We don’t know who created this fake website nor are we accusing anyone of doing so. However we hope the authorities will investigate as it really wouldn’t take long and it might uncover some additional, interesting information. We do know that Platinum Partners is the single largest investor in ECTE so that fund has the most to lose should ECTE’s value decline. We also know that certain individuals associated with Platinum have been accused of a variety of illegal activities. We also believe the fake article was fairly well written and likely wasn’t written by an unsophisticated retail investor.
[drizzle]Below is the real story which suggested ECTE was overvalued
Below is the fake story
We remain short ECTE.