And who’s the name with the second most shares of the stock?
David Dubner. Just looked him up, he’s a real beauty. Attached is a class action suit against another company he and his colleague, none other then Michael Brauser had that went bankrupt in Boca Raton.
These guys are con artists and getting away with it time and time again. Helps to live in Florida where the state or the feds can’t go after your property.
http://securities.stanford.edu/filings-documents/1056/II00_0…
TMB
TMB,
These guys are con artists and getting away with it time and time again. Helps to live in Florida where the state or the feds can’t go after your property.
Is that why so many scam/shell companies are in Florida? Why Boca Raton precisely? Just where they gather to scam?
I looked at Pareteum, it too is based in Boca Raton FL. That one had a pretty convincing analysis that revealed it as a scam. Pareteum said they signed a big deal with some African telephone company. A Google Maps revealed the address for the telephone company was just some empty 1 room shack.
I said it was a tiny company and that it could turn out to be a scam. On the other hand I’m willing to risk 1.5% on it not being one. We’ll see.
Thats why I always try to exit positions, prior to the SEC entering. Seriously though, I put 2%. Why not, if it works, it will be bags.
Just wanted to address a few of the concerns brought up so far.
One big concerns seems to be the business location: Boca Raton, FL:
It should be noted that there are several logical reasons why RDVT would chose FL as their HQ.
First, Hank Asher (you’ll know the name if you have looked into RDVT), grew up in South Florida. Asher founded Seisant and TLO in Florida (both of which were acquired).
For good measure, current CEO fo RDVT, Derek Dubner, earned his JD from Florida State University. Also, the current CFO of RDVT, Dan MacLachlan earned his degree from Florida Gulf Coast University. These guys worked with Asher for years up until his death.
It makes sense that these guys are all from FL and would chose to HQ there
Second major concern seems to be Michael Brauser:
I won’t spend anytime attempting to defend the character of Mr. Brauser, as I don’t know him at all personally.
Also, I think that if you have concerns about Brauser who owns about 10% of RDVT, then you should necessarily have concerns about billionaire Phillip Frost, who owns about 21% of RDVT, and was named as an accomplice to Brauser.
Could they be puppeteering this company and waiting for just the right moment to pull the rug out? Sure, but I doubt it. Risking getting your hand caught in the cookie jar twice would be very foolish, especially when they’re already on the SEC’s radar. Also the businesses that Brauser/Frost were accused of pumping and dumping were biotech companies/blockchain, not companies with proven merits (remember this management team has exited 2 businesses with this exact same model). Beyond that, Barry Honig, who was named as the ring leader in the pump and dump schemes with Brauser and Frost, has no affiliation with RDVT. Brauser has also stepped down from the board at RDVT, but still works with the company in a consultative role.
Do your own due diligence.
So just get out before the SEC comes knocking. Very interesting investment strategy. No “socially responsible” criteria there.
All I can say is, in light of this new information, I will not be buying, not that I was going to before. I hadn’t clarified this wasn’t just a company similar to all those “check the background on ANYONE” sites with s bunch of buzzwords and slick talk to make it sound like they were solving world problems with big data. Pulling from credit bureau and state/local arrest records is not solving “big data” problems.
Seriously it’s hard enough as it is trying to avoid the next NTNX as it is let alone knowingly holding a ticking time bomb.
I will also add that one of the enticing things about PRTM was its downright cheap stock price, a similar trait many other sketchy companies always shared.
So as long as these concerns linger, I would not expect RDVT to trade at high price multiple valuations.
Doesn’t take more than 6 seconds to understand that Duma and TMB’s posts make complete sense. Even if, by some chance (and chance it is) this company is solid, why take that sort of risk given the opportunities out there?
Each to their own. In my mind, if you have to go here to improve your portfolio we are either at the top and nothing seems real great to invest in any more, or your portfolio just really is not very good to begin with.
A lot of money can be made in a stock like this as long as your not the last fool caught in it before the crash. Companies like this, I can think of maybe 1 or 2 that ended up being legitimate, and maybe one that was legitimate and successful in the end. In the interim you cold look like a genius and ride the frenzy into it.
Hey, if you get rich on it, let us know in a few years.
Tinker
From 12x’s description, you can manage to recreate the product yourself through use of Alteryx. OMG! They are going to disrupt Alteryx!!!
And if you believed that…god help you all.
Yes, Alteryx can exactly recreate this product with a citizen data scientist and a week or two of time. Don’t even need a real data scientist to pull that off. Seriously.
So be it, each to their own. I don’t know Saul’s involvement in this, I just heard he added. I trust Saul, so maybe there is something more to it. I just don’t see the need to invest any more time into it givens what 12x has also added, plus experience combined with intelligence. If you think you can play the momentum (which this board is not, but why not) people have gotten rich by not being the last person out.
For whatever it is worth.
Tinker
TommyTripod writes…
Also the businesses that Brauser/Frost were accused of pumping and dumping were biotech companies/blockchain, not companies with proven merits (remember this management team has exited 2 businesses with this exact same model). Beyond that, Barry Honig, who was named as the ring leader in the pump and dump schemes with Brauser and Frost, has no affiliation with RDVT. Brauser has also stepped down from the board at RDVT, but still works with the company in a consultative role.<\i>
This is not reassuring. Brauser is a dealbreaker. I’m w TMB - this stinks to high heaven. Like attracts like. No way I’d trust a word this crew says.
Pardon html typo - bottom part of post above is mine.
An investigative journalist, Teri Buhl who has written for Barron’s is extremely critical of Brauser and recently Tweeted that he is brazen enough to pump-n-dump while under investigation. From an article she wrote…
http://www.teribuhl.com/2020/01/16/more-charges-coming-for-b…
But a glimpse of who the SEC is focusing on can be seen in a recent subpoena sent to Brauser’s son Ben Brauser. The SEC list 33 companies, which includes Red Violet ($RDVT) and Fluent ($FLNT), that it wants private documented information on. Red Violet and Flint have both seen extreme swings in their stock price in the last year. Ben Brauser filed a motion in South Florid Federal Court to squash the subpoena in November. This was the first time the investing public learned Ben was also working as a securities lawyer for his dad Michael since 2010. Ben, who invested in some of the stocks at the heart of the SEC case, is now trying to say he doesn’t have to turn over everything the SEC is demanding, which includes trading records and emails to stock promoters because he conveniently has attorney client privilege. The lead SEC attorney on the case, Nancy Brown, has fought back and filed a five page letter to the judge arguing why Ben Brauser shouldn’t have attorney client privilege and could have aided his father in his scheme.
Tinker,
From 12x’s description, you can manage to recreate the product yourself through use of Alteryx. OMG! They are going to disrupt Alteryx!!!
Funny, I had the same thought, which is why I said moat here may not be sustainable…
I had 1% in RDVT after tommy discussed it on the board a few weeks ago. After today’s bump and discussion of uncertainty I was able to sell with a 10% gain. Took those funds and moved them to DDOG.
Still keeping them on the watch list for the short term. Quarterly earnings coming this week on Thursday. If it gets under $24 in the next two days, I may look at adding a new position in it at 5%, taking the funds from my cash reserves and hope the earnings report brings another 10% gain.
Just saw that the one year forecast is $36.80 and five year $94.66 so I see the growth potential that caught Saul’s attention for a 1% position of his portfolio as it sits at $26.00 after hours.
Quarterly earnings coming this week on Thursday.
Looks like next Thursday, March 12th, not this thursday
http://investors.redviolet.com/news-releases/news-release-de…
-mekong
This is a great conversation, everybody! I saw the opening messages yesterday and took a look at the chart rising after 11 a.m.
Then, I started to think about my Foolish training, and one of the good lessons I’ve learned from the Fool is – what’s the leadership like? Every time one of my favorite Foolish services pitches a new company, they include a paragraph or more about the founders and/or leadership and talent. Sometimes they will include info. about the employees and Glassdoor ratings, etc.
I appreciate the community helping to answer that main question – how’s the leadership.
Great discussion and thank you, everyone! I love how the community here works together.
Karen