Rock Creek Pharmaceuticals, Inc. (NASDAQ:RCPI)

CAPS Rating: 1 out of 5

The Company is engaged in developing, implementing and licensing scientific technology for the curing of tobacco and also manufactures, markets and develops very low-nitrosamine smokeless tobacco products and selling of discount cigarettes.


Player Avatar zzlangerhans (99.85) Submitted: 11/17/2012 1:55:16 AM : Underperform Start Price: $1.77 RCPI Score: +9.56

If any company deserves to stagger down to the pennies, it's Star Scientific. It's getting harder and harder for these guys to pretend they have any pipeline and IP assets, and their cash position is starting to look shakier. Feuerstein pointed out today that instead of trying to raise money close to their current share price, Star slashed the strike price of out-of-the-money warrants from 2.71 to 1. That put 18M in the coffers at the price of 18M new shares, instead of say 12M new shares if they had done an ATM or a private placement at 1.5.

In case you aren't following, Star is basically giving away their company to a select group of shareholders for no clear reason. If you don't belong to that select group, then when you buy a share of Star on the open market you can expect a portion of the cost will end up in some privileged person's pocket. Basically, Star seems to have begun the process of liquidating themselves by funneling their market cap to insiders and institutions while still trying to recruit more retail bagholders to pay the bills.

It's good to see Feuerstein weighing in on this scam at last, but I wonder what took him so long? I hope it wasn't unwillingness to cross fellow The Street contributor James Altschuler, who famously and ridiculously pumped the stock in Seeking Alpha in 2010 . Altschuler now seems to have reaped his pumped profits and moved on. Any other Starfish out there still willing to poke your heads out of the trenches?

Report this Post 2 Replies
Member Avatar sidiling (97.03) Submitted: 11/20/2012 10:37:58 AM
Recs: 1

Seems like you are our last hope in getting unbiased analysis!!

Member Avatar zzlangerhans (99.85) Submitted: 11/20/2012 3:15:26 PM
Recs: 0

Yes I am. Thank heavens for me!

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