MGT Capital Investments Inc (MGT) research, news, and more from GeoInvesting

Company description

Mon, 16 May 2016 14:43:17 GMT

MGT and its subsidiaries are principally engaged in the business of acquiring, developing and monetizing intellectual property assets. MGT's portfolio currently includes social casino and gaming platforms, and ownership stakes in DraftDay.com, a top daily fantasy sports wagering platform and DraftDay Fantasy Sports, Inc. operator of an online entertainment marketing and rewards platform.

MGT also recently announced the acquisition of certain technology and assets from D-Vasive Inc., a provider of leading edge anti-spy software. In conjunction with the acquisition, The Company also announced the proposed appointment of John McAfee as Executive Chairman and Chief Executive Officer. Further, MGT Capital also intends to change its corporate name to John McAfee Global Technologies, Inc. Closing of the acquisition is contingent on customary conditions including approval by MGT's stockholders.

Research

Mon, 14 Nov 2016 16:22:33 GMT

MGTI ($1.20) - MGT Capital Investments, which now trades as MGTI on the Over the Counter market after its recent delisting from the NYSE, announced a Note Exchange Agreement in an 8-K filed on November 13, 2016. The company failed to put out a press release for this transaction and didn’t mention it in a subsequent press release put out a day later, updating shareholders on its Bitcoin operation. The terms of the Note Exchange Agreement look to be ugly for shareholders, as the company is replacing 12% unsecured notes with 8% unsecured notes for $1.5M in debt, but is also at the same time making this debt convertible at $1.00 per share and is issuing about $400,000 worth of free warrants at the same time. Debt holders shorting what they are owed against the box could put pressure on the stock and this transaction will likely ultimately dilute current shareholders further, by between 300,000 and 1.5 million shares. Recall, we have written a series of critical articles about MGT over the last year. In that time, the stock has fallen from about $3 per share to about $1.20 per share, and the company has been delisted from the NYSE.

Research

Thu, 20 Oct 2016 16:15:02 GMT

MGT ($2.33) - The NYSE delisted shares of MGT Capital yesterday after hours and today the company will begin trading on the Over the Counter (QX) Market. Recall that for the last 6 months, we have been warning members and investors about potential risks that come with an investment in MGT. Unfortunately, we were not short MGT due to high borrow costs and lack of clarity on when the exchange might take action.

We questioned the company’s ties to individuals involved in past pump and dumps and we also questioned a large dilutive share issuance valued at over $120M that would have been performed to acquire a company with assets of less than $10,000. Our latest article also showed how John McAfee’s wife stood to benefit monetarily from this transaction, as we pointed out a web of companies that would have led to McAfee’s wife - and by proxy, McAfee himself - receiving potential significant monetary benefits from MGT undergoing its proposed share issuance.

The NYSE stepped in just a couple of weeks ago and denied the company the ability to issue these shares for the acquisition and moved to delist the company from its exchange yesterday.

Research

Tue, 20 Sep 2016 16:23:40 GMT

MGT ($2.52) released a press release this morning stating that “that the New York Stock Exchange informed the Company late yesterday afternoon that it will not approve the listing on the Exchange of the 43.8 million shares that the Company is required to issue in order to complete the closing of the D-Vasive merger.”

Recall, we have been intensely critical of the company’s plan to issue hundreds of millions of dollars worth of stock to consummate a merger that, according to the company’s proxy, was for a company with less than $10,000 in assets. We wrote an article called “MGT Capital Investments Seeks to Issue $150M in Stock to Acquire $5,000 in Assets“ in early August that described why we thought this share issuance was questionable to begin with.

Recall that yesterday, the company announced that it had received a subpoena from the SEC.

Research

Mon, 19 Sep 2016 15:19:17 GMT

MGT ($3.21) - MGT Capital Investments, a company we have been critical of in the past, disclosed this morning that it has received a subpoena from the Securities and Exchange Commission. Recall, we have written three critical articles on the company: one talking about paid promotional history of the stock, one exposing what we believe to be a gross overpayment for assets, and a third questioning the CEO’s wife’s ties to certain entities the company was paying tens of millions of dollars for. We will keep our members updated as new facts become available.

Research

Wed, 07 Sep 2016 04:00:00 GMT

Closed Out Our MGT Short

MGT ($3.38) - MGT is a company that we continue to be extremely skeptical of, but due to the high cost of borrow and potentially lengthy timeline, we were forced to reevaluate our short position in the company to deploy the capital elsewhere for now. We covered our short but will be following MGT very closely and may choose to short again at any time. We will keep you informed of future meaningful developments.

You can see all of our past MGT coverage here.

Research

Thu, 04 Aug 2016 15:47:29 GMT

Releasing Second Critical Report of MGT

This morning we are releasing our second report on $MGT. Recall, we wrote this article in May of this year raising critical points about stock promotions and other questionable behavior by MGT and affiliated personnel. This morning, our second report goes in depth into why we are short MGT, including our key points:

MGT Is slated to issue 43.8 million shares, currently valued at over $150M, to purchase assets of software companies D-Vasive and Demonsaw. That works out to about 191% dilution to the current share structure.
As of March 31, 2016, D-Vasive (which actually owns Demonsaw) had a little more than $1,000 in cash in the bank, $5,000 in total assets and less than $10,000 in total revenue
MGT likely to further ruin its share structure moving forward as need to raise capital continues, even if one is to believe in the $5,000 in assets they’re issuing $150M+ in stock for
Pump and dump scenarios often attempt to disguise players who are involved in the story or selling stock. The case of MGT appears to be no different.
Robert Ladd, CEO, appears to have dumped more than 380,000 shares of stock for his family members from May 12th to May 17th, 2016.

We are short shares of MGT.

Pleasesee our entire report.

Research

Mon, 16 May 2016 14:44:33 GMT

There is a new pump and dump outfit in town. We recently came across the following two promotional online services that seem to be related.

We are currently taking a look at MGT (2.10). The stock has pumped from around $0.50 on May 9, 2016 to its current price, an increase of over 300%, on two pieces of news.

The company announced that they have agreed to acquire specific technology and assets of McAfee's anti-spy software company, D-Vasive for a cash and stock sum. This would give them approximately 47% controlling interest in the company.
They've acquired technology incubator The Round House LLC. This will offer co-working space, accelerator services, and additional angel investments for companies meeting the organization's criteria. Of the current equity ownership that Round House has in some of its companies includes ownership of RecMed First Aid. RecMed was founded by an Alabama teenager, Taylor Rosenthal, who according to a report issued by CNBC, actually turned down an initial buyout offer of $30 million.

We will continue to track and likely have further updates on what appears to be a massive pump and dump campaign. In fact, the disclaimers on techstockinsider.com states that they “tout”, a term that in the past has validated our recognition of red flags associated with pumps and dumps.

“We are paid advertisers, also known as stock touts or stock promoters who disseminate favorable information (the “Information”) about publicly traded companies (the “Profiled Issuers”).”