Kevin Massengill has recently been pushing his Defense Technology Alert by dropping some hints about his two favorite investments… including what he says is “My Top Defense Play of All Time.” So what’s the story?
Well, you could subscribe to find out, I suppose, if you feel like ponying up $2,000 a year and trust yourself to think clearly when someone is promising that you can “EASILY turn $5000 into as much as $152,050 and likely more…”
Or you can keep reading, let us ID the two stocks he’s using as bait, do a bit of thinking for yourself, and then decide if you feel like walking into a high-priced defense stock advisory. Your eyes will at least, I hope, be open, and you’ll have a better chance of thinking rationally about whatever the stocks happen to be.
So let’s move right in, shall we?
Here are the first hints he drops about this “Top Defense Play of All Time”…
“This $148 million contractor is small and agile – less than 1/100th the size of the General Dynamics, the Lockheed Martins, the Boeings and the other huge players in this space.
“So it’s completely off the radar.
“But I’m convinced that could change at any minute.
“And in a very big way.
“In fact, as I’m about to show you, this firm’s technology is on the verge of creating nearly $98 billion in new wealth for American patriots who invest right now.”
That’s pretty overwhelming — he says it “might” hand you a 2,941% windfall… and presumably he thinks this can happen soon, because he says it could be “10 times that longer term.”
So what’s the story? It’s all about something he calls “QUANTUM Vision” …. here’s a bit more from the ad:
“You see, they have achieved a series of stunning patent-pending breakthroughs.
“All of them related to a clandestine program that’s been fast-tracked by the Defense Advanced Research Projects Agency….
“And having seen what it can do, I’m convinced this mind-boggling new tech:
“Could soon turn 1.5 million U.S. soldiers into a lethal combination of the Terminator and Iron Man….
“… it’s about to solve one of the Pentagon’s biggest problems: How to get the world’s best intel into the eyes of the world’s best soldiers.”
Sound familiar? Here’s another bit of hinting:
“A device that can give our soldiers all the benefits of quantum vision and then some…
“With something as simple and inconspicuous as a contact lens….
“Except this is no ordinary contact lens…Are you getting our free Daily Update
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“It’s actually more like a Bionic Eye
(But 1,000 times better)
“These new quantum vision lenses come equipped with:
➢ Night Vision…
➢ Telescopic Sight…
➢ And More…
“Including the ability to receive real-time intelligence feeds from drones… satellites… helmet cams…
“Or anything else DARPA decides to include.”
Yep, this is another pitch for what Massengill was calling “Soldier Super Sight” back in May… so presumably he’s still pitching the same little stock.
And yes, all the clues still line up — this is still EP Global Communications (EPGL), which is a little OTC-traded R&D shop that’s trying to make deals to commercialize its patented contact lens technologies… and they were so excited to see that they were being touted by the massive Agora Financial earlier this year that the CEO even made a point to issue a press release announcing that Massengill’s recommendation didn’t even focus on what they think their biggest patent is, the “Elastic Circuit” technology.
So Massengill made sure to include that this time around… this is from the ad:
“… the patent they secured six months ago was for something called an “Elastic Circuit.”
“With it, they beat all of these multibillion-dollar companies to the punch.
“And they know it.
“So what’s an elastic circuit?
“It a circuit that’s flexible in three dimensions… just like a pliable contact lens.
“So it can bend the same way as a contact does… all without fail.
“And, as far as I know, it’s the only integrated microelectronic circuit in existence that can be incorporated into the existing manufacturing process.”
So yep, he’s still talking up the same company — and this is a ridiculously low-priced penny stock, so be mindful that the attention from Massengill and Agora has been by far the most important driver of the stock price this year — despite some actual news in their press releases and their occasional conference calls (they just had a call last week about their latest press release about a commercial development project, if you want to check it out).
EPGL is still talking about a tentative plan to sell the company or their IP or make some similar deal with InWith, perhaps in conjunction with venture capital partners — InWith is apparently seeking venture capital in order to fund the “relationship” with EPGL by the end of the year… and the “vision” they put out is that EPGL shareholders will be able to secure either a cash buyout or get InWith shares after InWith gets a meaningful amount of venture capital (and then the goal of InWith will be to position themselves for an IPO). Though, of course, CEO Hayes describes that as a “hypothetical” and a “goal” on the latest conference call.
Back in January, when the joint Inwith/EPGL press release came out noting that Inwith was seeking “up to $500 million in funding” for a theoretical 9.8 cents/share buyout of EPGL, the press release indicated that “Several EPGL Shareholders have requested and will receive a gift of Inwith Corp Equity”, so my presumption is that this refers to the CEO and insiders, which makes it a pretty odd-sounding deal all around. I haven’t seen any other mention of that 9.8 cents per share buyout, perhaps because Inwith doesn’t seem to have gotten any funding.
InWith, their putative partner, doesn’t seem to have anything else ‘real’ about it — it’s a private company that has a website about some augmented reality and ‘bionics’ type stuff, but no real information… so why on earth is it InWith that’s seeking venture funding to license or buy out EPGL, and not EPGL itself that’s trying to actually fund development? I have no idea. So far, what InWith has provided is an AutoCAD design of the “EPGL Omega Contact Lens” that will supposedly be controlled by a smartphone.
I do know that CEO Michael Hayes is frighteningly promotional, most of the conference call was all about how it’s “time to get in” and there will be new deals and relationships that will supercharge the share price. They even tweeted out a week before the last press release that “We hit .065 just weeks ago on a newsletter article. The major update we have nxt Tues is much bigger to $EPGL future than that was.”
Penny stocks that manage to their share price and try to pump up their share price, particularly when they’re not even in the process of raising money, are frightening. And, of course, we have no idea whether they might be raising money, or what the financial picture looks like, because it appears that they haven’t filed audited financials with the SEC since 2009. They do file occasional (laughably simplistic) reports with OTCMarkets.com, like this annual report from over the Summer, but essentially the company seems to consist of some patents, some doctors who worked on EPGL’s previous technology (a muscle pain diagnostic device of some kind, referred to as MPDD), the CEO, and the promise that eventually those patents will be used for a commercial product. That press release from last week provides the latest spark of hope that such a product is in fact actually going to be developed someday, with the possibility of a self-focusing contact lens probably far, far more likely in the foreseeable future than some sort of military contact lens “heads up display” technology.
So the company looks like it’s very much for dreamers and hope