Stocklemon Reports on China VoIP Digital (OTCBB:CVDT)

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Stocklemon Reports on China VoIP Digital

Give the Vancouver promo crew an “A” for consistency but an “D-” for creativity.  They’ve followed a formula that could only have come out of a promoter’s cookbook that we have seen one too many times. 

In a recipe that has become routine on the OTCBB, start with a group of promoters who have all been associated with a medley of ugly penny stocks.  Find an obscure company in China and a dormant reporting Bulletin Board shell company  — a mining company that’s never mined anything, for example.  Buy the Chinese company for as little cash as possible, say about $200,000, (hey, that’s cheaper than the shell)  and millions of shares of the shell’s stock in a reverse merger.  When you rename the thing, be sure to combine the words “China” with some hot technology buzzword, digital will do.  Swizzle in a glossy paid promo piece (spend about as much on the promo as the shell and the China company combined), and Presto! ….. Just like the TV chef pulling the “already baked” cake out of the oven, we’ve got ourselves yet another actively traded $200 million company.  

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Stocklemon Reports on Systemax (NYSE:SYX) Part II

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If there is one thing that Republicans and Democrats, short and shareholders, and people of all races and religions can agree on is that we all hate rebates.  Systemax has built a business based on rebates.  Yet the dependence of its business model on this dubious practice is not fully disclosed to the investing public.

In October of 2006, Stocklemon reported on Systemax, as we were concerned about their late filing and the possible red flags at the company.  Within the report we touched on a subject that we believe now has become the elephant in the room.

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