MagneGas Says It Has Identified Anonymous Short Seller That Said Stock Is Overvalued By More Than 90%

Seeking Alpha

in December. The anonymous short seller, dubbed "The Pump Stopper," argued that MagneGas' stock is overvalued by more than 90 percent. "I believe MagneGas is an imploding paid stock promotion shell of insider enrichment and hype with immediate -92.90% downside risk," The Pump Stopper wrote back in December. "With a stock shell purchased for $32,000 and cumulative total R&D spending of $1.18m, this team of calculated wipe-out artists have carefully orchestrated a clever "reboot" of a failed 1998 penny stock story with obsolete and unviable technology while paying themselves $14.1m, ~12x more than has been invested in R&D." MagneGas noted in its press release on Friday that it will pursue the individual "to the fullest extent of the law." The company also added that it believes the author is "one of several individuals who acted in collusion with others to receive ill-gotten gains through short selling in combination with false and misleading "anonymous" publications." "MagneGas Corporation will not tolerate these kind of false and misleading reports or blog posts from individuals colluding to obtain fraudulent gains off of the backs of our loyal shareholders. These bloggers believe they are anonymous, but what they don't understand is that no matter how hard they try to hide their actions, they leave a long trail of cyber evidence that can easily be obtained when working with the right government law enforcement agencies and forensic investigators. We will continue to work diligently to the greatest extent of the law to pursue those individuals trying to harm our shareholders. In the meantime, we will continue to focus on execution of our strategy to expand the sale of MagneGas2 to marquee customers, who would never even consider our product if it wasn't in their opinion the best on the market," stated Ermanno Santilli, CEO of MagneGas Corporation