Bob Flaherty, Editor of Flaherty Financial News, is a legend in his hate of unscrupulous bear traders. As a former Senior Editor of Forbes, only one man has written more cover stories. His credentials are nothing short of illustrious.
Flaherty graduated Magna Cum Laude from Harvard College with a degree in economics and also has an MBA with Distinction in Finance from Harvard Business School. In addition to his work for Forbes, Flaherty was also Chairman of The Over-The-Counter Securities Fund and was the acting president of the New York Financial Writers’ Association. This only scratches the surface.
Today, following a feature on DiMi Telematics (OTC: DIMI) in the August 1, 2012, issue of Flaherty Financial News Newsletter #33, (Published by Bob Flaherty and his son Brian), DiMi Telematics gained over 17% on well over 5,000,0000 shares traded.
But is this consistent with the award-winning record as a journalist that Bob Flaherty has garnered over his career?
On one hand, Flaherty has written or edited over 100 stories on abusive short selling during his career. Now, if Flaherty’s numbers prove true, there has been a disgraceful organized raid to kill DiMi Telematics with a public float of well over 100% being shorted. This is a mockery of the delivery rules. Namely, Rule SHO introduced by the SEC in 2005.
It is quite difficult for an ill-prepared company to withstand the barrage of trades perpetrated by well-networked trading blocs. Hence, rule SHO.
On the other hand, Bob Flaherty Visited DiMi Telematic’s test buildings in Harlem earlier this year, Bob Flaherty may or may not have read this article by the New York Times that he deemed “delightful”, and Bob Flaherty accepted $15,000 to tout DiMi Telematics stock.
From FFN Newsletter #33: “On June 15 I picked DiMi Telematics International (DIMI-0.03) as a strong buy at $0.84 and was also featured in a promotional MagaLog. As disclosed in our own newsletter disclaimer, Flaherty Financial News Inc. received a check for $15,000 to feature DiMi in our Flaherty Special Situation #30 from a third party Cloud Focus Group.
Earlier my son Brian and I went to the Harlem, N.Y. -based Fata family’s real estate office to interview co-founder and DiMi system creator Roberto Fata. After a lengthy interview Roberto demonstrated how his DiMi system could monitor and control office buildings from any place at any time. We walked through the halls as Roberto varied the positions of his mobile devise to put on a show.”
OTC trading is clearly a dangerous endeavor. The preceding descriptions, excerpts and links are not meant in any way to play “he said, she said” nor detract from Bob Flaherty, nor promote DiMi Telematics.
It is, however, a clear lesson on the pratfalls and benefits of OTC trading and, if well researched, could provide an understanding of both the present situation with DiMi as well as its future. To paraphrase Flaherty himself, stock promoters provide an excellent opportunity for bear raiders to rule the day. Stay informed.