written by reader Oxford Club’s Mark Litchfield’s teaser on Lighting Trend Trader.

By xiexgp@gmail.com, June 2, 2014

Is there really a way for anyone to get information on the FDA’s announcements on their approval or disapproval for drugs? That to me sounds like insider stuff, what do you think
Lou Pre32

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Observer
Irregular
Observer
June 2, 2014 6:04 pm

I subscribe to Marc Lichtenfeld’s “Lightning Trend Trader” service, and I haven’t seen any evidence that Marc actually claims to have “insider” information. If he does have such access, he’s certainly using it to very poor affect. Prime example: He recommended puts on MannKind back in March, because he was virtually certain the FDA would reject one of its drugs, and then wrote that he was “stunned” when an FDA committee voted to approve the drug in April – the puts expired worthless. I posted the following elsewhere on Stock Gumshoe today:
My impression is that Marc Lichtenfeld of Oxford Club is a smart guy and works hard – but my advice is to be very careful about subscribing to one of his “premier” services. So far this year, in his “Lightning Strike” service he has had the following results:
Recommendation #1 stock – currently up 25%
#2 stock – sold for a loss (price dropped and hit its 25% sell stop)
#3 stock – sold for a loss
calls – sold for a loss
#4 puts – 100% loss
#5 stock – sold for a loss
#6 stock – sold for a loss
#7 puts – presently down – 70%
#8 stock – sold for a loss
calls – sold for a loss
#9 stock – currently up + 6%
#10 stock – currently up + 2%
calls – essentially even (depending on entry price)
#11 stock – down 2%
calls – down 17% below recommended entry limit

And yet this “service” is being VERY heavily hyped right now by Oxford Club and Marc. To quote Marc: “The people who act on my recommendations are doing exceptionally well.” That might have been true last year – I gather it was, though his “service” was then called “Healthcare Profits Alert,” which apparently attracted few subscribers – but his results over the last 4 months don’t even remotely match up to that. Yet he says “people…are doing” (present tense) exceptionally well – which is just pure nonsense.
I’m not sure why this type of thing doesn’t actually cross the line into illegal false advertising – his “present” results certainly don’t qualify as “exceptionally well” under any usage of the English present tense. (I sent Marc a note asking why he didn’t at least wait until he had one result – one single result – that merited the hype before launching an aggressive marketing campaign – no response.) I think these guys (in the newsletter business) are lucky they seem to fall under SEC scrutiny (but very very rarely) rather than the FTC – which it seems like they should since they’re marketing a “product.”
Clear case of buyer beware…. The warning “past performance is no guarantee of future results” has never been truer.

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ggswift
August 5, 2015 10:53 am
Reply to  Observer

Seems that you can lose your money , “Lightning Fast!”

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SoGiAm
Irregular
August 5, 2015 11:12 am
Reply to  ggswift

Hi Gerald! Interested in biotechnology? We’d be pleased to have you join us on the current biotech thread here: http://www.stockgumshoe.com/2015/07/biodimsum-iii-keep-on-rockin-in-the-gummune/ Best2YaAlways_Ben

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Alison
Member
Alison
June 3, 2014 12:45 am

I also would like to know why it is legal to state that the service has had 100% gains every 4 months in the year he has been doing this. He charts company after company that he predicted correctly.

Observer
Irregular
Observer
June 4, 2014 9:15 pm
Reply to  Alison

Alison: Marc Lichtenfeld is talking about his results during the year 2013 – his “service” was actually called “Healthcare Profits Alert” at that time. I have no way to check his claims, so I have to take it (absent evidence otherwise) that he is at least being somewhat accurate. Because the service was not attracting enough subscribers, Marc’s service was “rebranded” in Feb. 2014 as “Lightning Trend Trader.” Whether this makes it a “new” service, or just an essentially uninterrupted continuation of the old one – well, certainly new subscribers can only go by “Lightning Trend Trader” results to judge performance.
My complaint (in recent e-mails to Marc and Oxford Club) is with his claim in his promotional hype (I’ve been getting it several times daily – same recorded presentation by Marc) that his subscribers “are doing” (present tense) “exceptionally well.” As I wrote in my e-mails, if that’s not fraud, it’s borderline fraud in my humble opinion. (And I had pretty direct knowledge of the SEC case against Porter Stansbury in which he was convicted of fraud in like 2007 and fined $1.5 million. The circumstances are vastly different, but I personally think the underlying principle of truth in advertising is the same. Unfortunately, the SEC gets involved in this kind of thing almost never. So, as Travis knows, newsletter publishers get away with this kind of thing all the time.)

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