Recent Trades

Because I can't answer people over at iii.co.uk (I'm banned) I'll answer here.

The recent trades that have gone through are most likely the result of their broker Allenby sending out a report on the company. Reminds me of when Hitchens (another company around xG that went bust) used to send out reports. I hope these new buyers realise that the company, as well as abandoning their only key selling point - the incredible modulation, could possibly have their newMax "frequency agile" system ruined by FCC regulations too.

Fools and their money are soon parted.

Edit: I've had a chance to read it. My thoughts:

There's some fascinating things in the report, which overall strikes me as conservatively written. But as ever the devil's in the detail. What it doesn't say is infinitely more important than what it does.

It mentions the checkered history, but doesn't mention the early promise of a revolutionary 'incredible' modulation scheme. It was only on the strength of this 'impossible' scheme that the company was valued at $1.5Bn. Allenby never mention that this has been dropped, or that the offering has changed at all. This is deceitful.

Allenby never mention docket 03-201 which could pull the rug out from under xG's plans to use unlicensed spectrum in the way xG want to. They do mention that the most valuable thing about xG's current technology is the ability to use this spectrum - but not that this 'most valuable' thing could be taken away in a ruling coming shortly.

Fascinatingly the do acknowledge that Bohman has only put in $6m of the original $375m that was originally claimed, and that the 'revenues' booked are just orders from Treco, not payment. (As we suspected..)

They acknowledge the lost orders with Telefonica, Gama, National Grid and Townes, but not that the reason Townes was lost was because Mr Townes did his homework and called Rick 'a crook.' And the other companies found nothing to be excited about.

They never mention Far Reach, and how Okey found out they were a scam. How they didn't even have a clue about pricing. How the network that they and Okey built was average modulation with average performance.

They mention that the interference beating qualities may not be all that xG claim. But they don't mention that the wavelet pass filter, the 'key to xMax' according to Bobier, is no longer included in xMax. The don't mention the hilarious "military grade jamming" of their demo a few years back.

They don't mention xMax's original demo on the Florida flats could've been made by any number of modulation methods. It wasn't special - as they claimed.

They don't mention Phil Karn, and Prof Friedlander's demolition of their original claims.

They don't mention that this original tech has been changed to something standard. Something boring.

They don't mention that Rick and Roger are raping the company of $70k a month for 'services'.

They don't mention how many previous nomads xG have lost.

They mention their 'phone. But don't mention the previous handset, that was meant to have been delivered by the 'hundreds' to xG's HQ. Where are these 'phones?

They don't mention the lie of the $57m 'pre-orders', that never existed.

They don't mention the 2006 'strong demand' lie that had forced xG to up their partnership fees with those non-existent orders.

They never mention ACH Securities. Not once. Funny since a director used to work for them. They never mention how this company lapped their share price all the was from $5 to $18. They never mention the unregulated stock promoters Marc Dannenberg and Fredrik Wahlman, paid in shares by xG.

They never mention that Dannenberg was selling directors restricted stock whilst they were under lock-up. For half the market rate.

They never mention the same director Palmi Sigmarsson openly shorting his own company when he knew the first tech wouldn't work.

They never mention the ongoing court cases. How Richard Kromka, former xG Director,  found both Bohman and Mooers to be mad and unstable. How Mooers wanted to 'kill himself every day'.

The Figures presented look OK-ish. I'd love to compare them with xG's own reports and see any discrepancies :-) They show a cash-burn of $6m a year, and the only income is from Bohman.

They mention the management. But certain details are omitted. For example iDigi, for some mysterious reason, never shows on Rick, Rogers, or Joe's CV! Is it because they were sued for fraud at iDigi? Is it because they want to keep this from potential investors?

The whole iDigi thing, the: Boiler room, $33m lost, Mooers lying on the balance sheet, technical incompetence, faked demos, FBI investigation thing is just not there. Why is this? Shouldn't investors be told?

Palmi Sigmarsson (who had his broking company closed by the finance inspectorate, and sold restricted xG stock) never appears. James Woodyatt (who is hunted by the Swiss police, and was a senior man in a Bernie Maddoff feeder fund Optimal) never appears. Mrs Bohman never appears. Why is this?

I'll email Allenby and ask for comment.