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Why anyone would ever do business with or even, ya know "consult" for Joe Bruno's BFF, Jared Abbruzzese, is simply beyond me. The Albany Times Union's piece about "Jerry" Abbruzzese that I cited in this post paints a pretty unflattering picture of a man that seems to leave a pretty crowded wake of unhappy and litigious former investors and partners wherever he goes. Many of these former associates feel that Mr. Abbruzzese often neglects the interests of shareholders and the companies themselves in favor of fattening his own bottom line.
Though commenter kashew seems to think that "Jerry" is getting a bum rap, there does seem to be a pattern here. Let's start with Motient, shall we?
Motient Sickness
One of the screens I run regularly in CapitalIQ checks for companies with negative gross margins, negative cash flow, negative earnings--and a stock price that's up 100% or more for the year. I'm always curious when apparent dog stocks have big run-ups. Until recently, the results of this screen regularly included Motient Corp., a Lincolnshire (Ill.)-based provider of two-way wireless communications with a $1.3 billion market cap and a stock that trades on the Pink Sheets (an unusual combination). What knocked the company off the list wasn't an improvement in its fundamentals, which still stink, but rather a mysterious end to its stock rally. When I dug a little deeper, I found a web of intrigue so tangled that Peter Parker couldn't find his way out of it. Even in this scandal-a-day era, the backstage drama at this company is off the charts.
More on the flip...
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