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OT: Would you invest money in this local company?

The guy who owns this life has just been turned into a nightmare. I am sure he was thinking, I just got to keep this under the radar and I can cash out, declare the business bankrupt and retire comfortably. Now, he has been thrust into the spotlight which I am sure is going to raise the scrutiny of the FINRA, SEC, NYSE, NASDAQ, etc. We all know it is always the little guys who pay the biggest price.

SEC Alleges Market Manipulation, Charges 3 Men With Fraud, In $100 Million New Jersey Deli Scheme​


Back in April of 2021, we highlighted when fund manager David Einhorn pointed out a single New Jersey deli that was trading with an insane market cap of over $100 million as one of the hallmarks of the bubble the market was in. Einhorn wrote:

"Strange things happen to all kinds of stocks. Last year, on one day in June, the stocks of about a dozen bankrupt companies roughly doubled on enormous volume. Recently, the Wall Street Journal reported a boom in penny stocks.
Someone pointed us to Hometown International (HWIN), which owns a single deli in rural New Jersey. The deli had $21,772 in sales in 2019 and only $13,976 in 2020, as it was closed due to COVID from March to September. HWIN reached a market cap of $113 million on February 8. The largest shareholder is also the CEO/CFO/Treasurer and a Director, who also happens to be the wrestling coach of the high school next door to the deli. The pastrami must be amazing. Small investors who get sucked into these situations are likely to be harmed eventually, yet the regulators – who are supposed to be protecting investors – appear to be neither present nor curious."
And now, so goes the bubble, so goes the deli...

https://www.zerohedge.com/markets/s...-men-fraud-100-million-new-jersey-deli-scheme
 
I always thought that was the strangest story. And I read somewhere that the deli isn't that good anyway.
you can believe what you read .
Check out the menu and see the type of breakfast sandwich they make 😁
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Not to challenge your securities law expertise but a small town deli with $35,000 in annual sales having a market valuation of $100 million just doesn't seem right. Could it be on the up an up? sure. But I am certain that this company will be getting scrutiny from the regulators. Its a joke on Wall Street that only the little fish get punished and largely that is true. In fact, the only large fish I can recall getting punished is Madoff and largely because he was so egregious in his deception, He screwed over alot of wealthy powerful people and the case got so much press attention that the government had no choice but to act.

Huh? Some of the .com companies had no sales, no product, no customers and a billion valuation. Was that a crime?
 
Huh? Some of the .com companies had no sales, no product, no customers and a billion valuation. Was that a crime?
vastly different, not right but vastly different
deli has defined sales and tangible growth prospects whereas you see Yahoo and amazon everyday.
 
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