“Cardio-Vest: Modern Medical Miracle”

By Travis Johnson, Stock Gumshoe, April 26, 2007

This one is another ad for Sosnowski’s MicroCap HotSheet, and it came in from a reader (who also had a suggestion for the solution, thanks!). A close second for the key part of this teaser was the subject line of some of the more recent emails on this one, “Too Dangerous for NBC.”

The company teased is a cardiac monitoring product firm, they design innovative products that allow for better monitoring of the heart, primarily in mobile situations — they have a little card product that patients can carry to check and transmit their heart data, and the Cardio-Vest that they featured on the Today Show which can be work by race car drivers and, presumably, other athletes to constantly monitor the heart under stressful conditions.

The Today Show called it a “modern medical miracle.” (not sure how tough the Today Show’s criteria is for that classification)

And the “too dangerous” part was that the Today Show didn’t release the name of the company — perhaps, as the newsletter editor would have you believe, because it would have been too much attention for such a microcap stock.

So what does Ann Sosnowski tell us about this company as part of her newsletter sell?

“In the short term, based on the FDA approval and release of this cardio-vest technology, I believe this company will hit at least $10 and could go as high as $20 after that, handing you a 1042% gain in the process.”

Hmmm … that sounds nice.

They have “an agreement with Gold’s Gym, the ultra-popular nationwide fitness center chain, to begin in-house cardiac testing with their equipment at Gold’s original and largest location in Venice Beach, CA.”

And FDA approval is expected “within a few short months”.

And as to specific clues about the stock, she says it’s priced at $1,75, and “Their stock price has actually posted gains of over 100% since the beginning of 2007!”

Then comes my favorite part: The section on exclusivity, where the newsletter editor explains that only a select few will meet the qualifications to receive this information (I suspect the primary qualification is “has $995 to spend on the newsletter,” but perhaps I’m being uncharitable.)

“Only a handful of the folks who read this letter will be allowed to profit from the information I’m about to reveal. In fact, most people will be intentionally excluded so that a smaller private group can enjoy the full rewards.”

Sosnowski is certainly trying to stand behind this pick: “If we haven’t delivered at least 200% gains by the end of 2007, just say the word. I’ll refund every penny of your subscription.”

And she warns that those who don’t get in as early subscribers may have to pay the $4,500 that “her publisher” wants to charge. I love when newsletter editors invoke the threats of their publishers — it reminds me of when the car salesman says he has to go “talk to his manager.”

The Gumshoe, of course, will not stand behind this pick … but neither will I charge you a thousand clams for the name of the company. One of my readers, who wishes to remain anonymous, sent this one in with a suggested solution to the teaser, and he was right … the company that’s developing all of these “high-potential” cardiac monitoring products is …

Signalife (SGN)

And this one’s actually traded on the AMEX, so at least there’s no pink sheets or OTC smell to it.

To be fair, Ann Sosnowski’s MicroCap Hotsheet has one of the most successful short-term picks that I’ve sleuthed recently — she’s the one who pushed Lynas for its rare earth minerals mine, and she continues to tease it in her ads, now with a focus on the need for rare earth minerals in hybrid car batteries. That doesn’t mean this pick is a great one, too, but I felt it only fair to mention (you can see the tracking of all the stocks I’ve sleuthed out in my tracking spreadsheet, which is live, almost up to date, and linked from the sidebar to the right).

The Today Show episode where they featured the Cardio Vest was in November of last year if you want to confirm for yourself, and the card, vest and other monitoring products are exactly has described in the newsletter … and as a bonus for Gumshoe readers, I can tell you that this stock is now “ON SALE” 🙂 — it has gone down since this email started circulating, so you could buy it today, if you so chose, for $1.50. It has traded at $1.75 several times in the last few months, and even gotten a bit over $2 a few times.

I have no idea if the FDA will approve this, or if that will impact the shares as positively as Sosnowski believes … I also don’t know anything about the company’s financials, so you’re on your own for reading those filings. I do know that medical devices certainly have a much easier and shorter FDA approval process than drugs, with a much lower bar to leap over, so I would give the benefit of the doubt to this one more than I would to a biotech drug in the approval process.

Best of luck to you — and as always, if you have any info to share about the Cardio Vest, Signalife, or anything else, comment away or send an email to ilovestockspam@gmail.com. Happy investing!

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May 22, 2007 9:51 pm

go to google finance for latest news. over 8 million shares shorted in addition to huge shorting since 2005 to present. the chart is like a slide in a playground. i guess i want to know if the approval comes for the cardio card/ vest, whatever, if some kind of “short covering rally” could ensue or is this just another vaporizing stock of a descent company ??? help please, suffering from lack of knowledge on the stock side but understand the companies business and product. thanks.

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