What’s the $100 million “Soldier Super Sight” Company?

What's being teased by Rickards & Massengill’s Defense Technology Alert?

The latest ad from Agora Financial’s Defense Technology Alert created a deluge of “what are those super contact lenses?” questions here at Stock Gumshoe, so as we dig out of the weekend teaser pile this one clearly rises to the “gotta answer it first” spot. What’s the story?

Well, the ad is for Defense Technology Alert, which is a high-price ($2,000/yr) “back end” newsletter co-edited by Kevin Massengill and Jim Rickards, and it’s all about profiting from high-tech military advancements — it’s pretty tough to sustain super-niche newsletters like this for very long, but it looks like this letter has taken the place of Byron King’s Military-Tech Alert that Agora published for a while.

They’re pushing the connection to President Trump’s professed desire for more military spending as a reason to invest in these smaller military technology stocks (they’re not the only ones, the Casey folks have a new “military tech” teaser pitch out as well that I’m hoping to look into soon)… and the specific bait that they dangle in front of us is a “smart contact” technology that is apparently owned by some tiny $100 million company. Here’s the headline:

“SOLDIER SUPER-SIGHT

“It Will Solve One of the Military’s Biggest Problems…

“Overturn Ten Industries Worth a Combined $2.46 Trillion…

“And Could Create Massive Fortunes for Investors Who Buy Into a Tiny $100 Million Company…”

And, of course, the talented copywriters at Agora make our palms prickle with anticipated wealth as they go on…

“It gives our men and women in uniform the ability to identify and see threats… know where to shoot… where NOT to shoot… where to step…

“With robotic-like precision.

“And this isn’t some distant, far-off fantasy land…

“This soldier super- technology is about to be deployed very, very soon.

“And already, the money is flowing…

“The U.S. military and the Defense Advanced Research Projects Agency both partially funded this technology’s creation…

“The National Science Foundation and the National Institutes of Health have also funded it…

“And now, finally, one small public company… trading for just 2 cents per share… has brought this revolutionary technology to the one-yard line and near completion.”

OK… so this is going to be a problem. Yes, Agora Financial is charging a lot for this subscription at $2,000… but still, if this is like past Agora ad campaigns, they’re going to send this teaser pitch to a couple million people. Some of them have their own Thinkolators at hand (not as good as ours, of course, but not every car has to be a Rolls Royce), or will subscribe, and have you ever seen what happens to a sleepy little penny stock when a couple thousand new investors get lusty about it?

Yes, that’s right, it almost doesn’t matter what we say about this one — the stock is going to go bonkers from all the new attention. We’ve seen it happen time and time again whenever a tiny stock is recommended by a big publishing house with access to huge email lists… and you should be prepared to think for a moment before considering any investment in these kinds of stocks: Am I buying it because I think this newsletter editor really has critical information that other investors don’t have, I’ve backed up that research with my own understanding of the company, and therefore the stock is really 10X more valuable than the market previously thought… or am I buying it just because I’m excited about seeing a penny stock jump dramatically?

If the latter, if you’re just caught up in the promises of Jim Rickards and Kevin Massengill, remember that stock surges that are caused by an artificial increase in the number of interested buyers tend to go away pretty quickly once the stream of new buyers rolling across the transom slows down, and getting back to a “real” equilibrium price for the stock can sometimes be painful if you get overly excited and buy it while it’s surging.

I say all that up front just because the $100 million market cap and the two cent share price make me nervous… I haven’t even fired up the Thinkolator yet to ID the company, so let’s do that and see if we have any more clues to feed into the hopper.

“If you looked at the tallest buildings in New York City…

“A big defense contractor like Lockheed Martin would be One World Trade Center.

“Raytheon would be the Empire State Building…

“And this tiny firm would the tiny hot dog cart on the city street corner.

“That’s how tiny this firm is.

“But I believe soon this company could announce news that will send its share price soaring fourfold… all the way up to 100-fold if the stars align.”

The imaging that they use in the ad is very much like that of a “first person shooter” video game — these “smart contacts” supposedly make it possible to identify enemy soldiers through smoke and haze, to spot IEDs or other hazards, plot coordinates and map out paths to travel, identify the location of your fellow soldiers, etc.

Here’s more from the ad:

“A basic form of this technology is being used already in the helmets of F-35 pilots.

“Of course, the pilots already wore helmets that covered 100% of their face, so it was easiest to implement this technology into their existing equipment.

“But for troops on the ground in action, the military needs something less intrusive…

“According to one defense technology expert, using this kind of technology instead of a clunky headset or eyeglasses ‘eliminates the optics entirely from the eyewear frame and utilizes transparent optics, so the wearer retains his peripheral vision.’

“While another expert adds that this kind of technology ‘creates the effect of viewing a 20-foot television at a distance of 10 feet…'”

So who is this? It must be a ludicrously small penny stock called EP Global Communications (EPGL), though the company seems to have renamed itself EPGLMed on its website and uses its EPGL stock ticker as its name quite frequently (sometimes a worrisome sign).

According to the data I’m checking from Fidelity, the market cap is close to $100 million, the shares are around two cents, and the company is indeed focused on tiny circuitry for “smart” contact lenses that can be part of a future augmented reality system.

The actual images of this “smart contact” lens in the Agora ad seem to be taken from EPGL’s website, so that’s some decent confirmation as well. The shares trade over the counter, and the company delisted and hasn’t filed anything with the SEC since 2009… so that’s a huge red flag for any serious investor, but serious investors aren’t screwing around with little two-cent R&D companies anyway, this is the province of speculators and gamblers.

The overpromising is, of course, crazy — and it is designed to make your greed overcome your sales resistance:

“This tiny company could soon deliver investors at least 390% on the low side.

“And…

“Open a window for early investors to make historic gains over 24,500% over the long term… if you act fast.”

So… will that really happen? Are soldiers really going to be wearing these smart contacts in the near future? I’d assume not, and EPGL does not seem to have anything like an actual prototype that provides that kind of “heads up display” inside a contact lens, or even an active connection with the military (though other somewhat similar ideas have certainly been funded by the military in the past — Emacula, which used to be called Innovega, worked with the Pentagon for a while to develop augmented reality systems that use a combination of contact lenses and glasses… and this 2012 Daily Mail article looks like it’s the source for much of the “technology like this” language in the teaser pitch).

You probably don’t even really need Agora to sell you on the company, though, the company tries to promote the heck out of itself on its website here, and their “why buy EPGL” pitch reads like a paid promotion.

The language from the Agora ad about the specific patents is here:

“And the firm I think is most likely to deliver extraordinary profits in this field has two approved patents protecting its intellectual property, including:

– A patented design for a contact lens case that charges your smart contacts while they’re out at night while you sleep.
– A patented way for the movement of your eyes to automatically focus your smart contacts.

“And, according to the company, they also have a patent pending right now for the smart contact to generate its power from each blink of your eye.

“Those three patents give this company the sole right to utilize those three specific smart contact design features.”

The two leaders of EPGL, Michael Hayes and David Markus, do indeed have several patents outstanding and additional applications, many of which are related to circuitry in contact lenses — I have no idea whether or not those patents will end up being critical, but there is at least some connection to larger companies who seem to place some value on the intellectual property, particularly CooperVision (with whom they apparently did at least some of the development, they settled a dispute a couple years ago with a licensing deal).

But, as I noted, they don’t file with the SEC, and the financials are not audited, and I have no idea what the actual prospects or value might be. OTCMarkets has some information about them, but they indicate that there’s only 500 million floating shares, which means someone else, presumably insiders, must own the other 4.1 billion shares. Either that, or the information is wrong — which is possible. They do have an annual financial report of sorts that they shared at OTCMarkets, which confirms the outstanding share count, but it’s absurdly simplistic and lacking in information. There was a conference call, apparently, in late March, and there’s a recording of that call at the bottom of EPGL’s website here. I didn’t listen to it.

And as far as catalysts are concerned, they do have a Twitter account that indicates they’ve retained agreement with some kind of partner and with another startup (private) called InWIth that raised capital recently — the latest tweet, on May 2, says that “MAJOR Co. now holds first rights on $EPGL. $InWith & Co. seeking raise by May 31st. Goal now to buyout tech & shareholders entirely” … and if you scroll down their Twitter feed, there’s plenty of other language that seems dangerously promotional for a public company, interspersed with updates about their patent filings and awards. I have no idea what that “buyout” language really means, but perhaps the company’s own references to the fact that the shares were 400% higher at 10 cents a share at their peak a few years ago are the source of Agora’s enthusiasm for a 390% short term gain.

That’s probably nowhere near as much of a catalyst as this attention from Agora, the stock had already traded almost 10X their average volume over the past ten days as of lunchtime today and was up by 20% pretty much immediately this morning.

The technology is real enough in general terms — I don’t know whether contact lenses will end up being the medium used by the military or augmented reality developers, or how “smart” those contacts might end up being, but certainly the “heads up display” idea for soldiers is an area of substantial investment by the Pentagon over the past decade, and a lot of those ideas have been tested and found wanting in the field.

The ad also quotes a Wired magazine article about a “google glass for the battlefield,” and that’s three years old and talks specifically about the Q-Warrior display from BAE Systems, the first contact lens-based augmented reality project funded by DARPA (the Innovega/Emacula one I noted above) was designed to get around the problem of soldiers having to shift their field of focus from a tiny screen at their eye to the actual threats before them on the battlefield by using a contact lens that manipulates focus or enables you to focus on two things at once, though that one is apparently no longer being DARPA-funded and they’re looking for private venture investors and partners.

And, well, I’ll leave it there. There’s nothing real to examine other than patent applications and grants, or the occasional press release or the extremely limited financial report, so any conclusions you want to draw about their financial prospects will require a lot of reading between the lines or a lot of faith in the glossy presentations on their website… which is dangerous for anyone, but particularly for folks who are not expert in the sector.

I would urge you to be extremely careful about speculating on any kind of teensy weensy stock that doesn’t file with the SEC, disclose detailed financial information, or even have audited financials… but you’re a grown-up, you can certainly make your own judgements when it comes to your money. If you’ve got any thoughts to share about this technology, or about EP Global, feel free to shout them out with a comment below.


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32 Comments on "What’s the $100 million “Soldier Super Sight” Company?"

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rmackintosh
Irregular
3
rmackintosh

I have a 3 mo subscription to this newsletter; I got the teaser too and have not yet been alerted as a subscriber to buy EPGL. On the other hand, at $0.02 per share, 10,000 shares is only a $200 flyer, like playing the slots in my hometown of Reno.

Fabian
Guest
0
Fabian

It looks like you’re not the only one thinking about that, the stock jumped 0.026 this morning. Dang another missed opportunity.

Sam
Guest
0
Sam

I agree with you. Besides, today it has gone 36% up. It looks like some company wants to buy them.
Good Luck

alex
Guest
0
alex

AS of 05/15/17, up about 30% since Friday close. Oh, what $50,000 in buys can do to a stock market cap.

Fabian
Guest
0
Fabian

I subscribe another Stantsberry high tech letter True Alpha and that’s the same problem. When they issue a new reco, the stock jumps. People’s nerves are under influence of greed. Look at DSPG, the peak, the reco. IMMY, the peak, the reco.
This letter is good by the way but you can’t use it as is. It’s a bit frustrating but I think it’s the same for all these high tech letters.

Chris
Guest
0
Chris

I was a past subscriber to high tech military alert, which they closed down and the results were pretty lousy. all hat and no cattle. I notice they are not mentioning Bryon’s name, perhaps there is a reason. Not for me.

rhscincy
Irregular
8
rhscincy

Most of our military actons today are in 3rd world countries. When I was.assigned to RVN in the 60s, out of habit I wore my contacts for 3 days before the eye infection shut me down. The medic laughed at the thought of wearing contacts in any 3rd world country, let alone in combat situations . I have strong doubts about humans with such lenses in combat.

Jim in PA
Irregular
8
Jim in PA

Welcome home, Bro. I was class of 70-71.
(For the civilians, RVN is “Republic of Vietnam.”)

stevemack70
Irregular
22

I consider this a sort of lottery ticket. $100.00 bet tops. We have scoffed at other technologies in the past only to see them make millions.

Frosty
Irregular
2

I was wondering where all that value came from today I should of known my boy gumshoe would have the info first place I looked well shit I don’t know if this is a good thing or a bad thing however company is gong to get paid by royalties I don’t see them being able to scale their business. If there smart the get a fat check royalties and move on to the next chapter of their lives whatever that may be

Top stock
Guest
0
Top stock
EPGL has patents they own 100% that where being worked on by CooperVisions Arthur Back, this startup after gaining these patents has now received another 6 that can be searched on at USPTO, under MHayes and David Markus. Markus was instrumental for a few developments at DARPA. Now JNJ holds first rights to licensing of EPGL technologies, with a 300billion market cap JNJ is a huge to be involved with a startup like EPGL, obviously they see potential with all patents granted and more pending. Big group in Silicone Valley along with InWith Corp now negotioning a BUYOUT of EPGL… Read more »
M. Miller
Guest
0
M. Miller
Normal I think this forum is very informative, well researched as well as written. Not this time… I guess I probably thought that because I didn’t already know a ton about the stocks outed by the Gumshoe. The article “Solider Super Sight ” showed EPGL potential by displaying the contact view with the addition of software. Then it seemed as though the Gumshoe dismissed EPGL because they didn’t have a prototype without the pictured tech. It’s like saying a DVD player doesn’t work, because after you turned it on a movie didn’t start playing. You need to put a DVD… Read more »
Robert
Guest
0
Robert
I have been a shareholder in EPGL for over 2 years. There technology is real. They have potential “lockout patents ” on this technology that will require anyone who creates smart contact lens technology to go through EPGL patents. They beat Google and Samsung and Apple to the tech and have a genius in Dr. Markus. Make no mistake this is real and somewhat understated. It does not mention the consumer market demand for this technology which is virtually unlimited. Imagine smart lenses that can focus on distant objects or transform to reading glasses with the blink of an eye.… Read more »
Andrew
Guest
0

excellent info, how about Elbit systems, they are right into helmet technology or Cobham http://eqibeat.com/top-20-aerospace-defense-stocks-by-dividend-yield-no-2/

thinairmony
Guest
0

My investment company is a main one and if I purchase a stock it takes 3 bussiness days to settle. So playing a 2 cent stock at 10,000 shares and $200.00. A lot could could happen negatively . Reminds me of a Pyramid if you have ever heard of one this is exactly how they work. Just saying.

Joel
Guest
0

Actually as an eyglass wearer, and contact wearer, their smart lens looks really interesting. Even if you don’t wear contacts, soldiers , anybody really, could benefit. I have made some bad decisions with my investments, guess I got impatient. Sold good, to buy silly ZNGA. The burn still haunts me, unfortunately.

Jim in PA
Irregular
8
Jim in PA

OK, so I bought a few shares as a speculative position. In reading about this out on the Internet, I found postings that the Angora recommendation will go out Friday, May 19 at 4:00 pm. I confirmed that on the Angora page. With that, it seems that the current action is from the “Gumshoe effect” or from others who have deciphered which company it is. The longs also are discussing a potential buyout that they’re looking (hoping) for. I guess I’ll hold my position at least into next week.

MrMatt
Guest
0
MrMatt
A private startup, InWith Corp. is raising funds to buy out EPGL shareholders. They have tweeted an approximate date of 5/31 though it could be sooner or later depending on their success in raising funds. EPGL holds several patents relating to smart lens technology and have many more pending approval. They also have technologies outside of smart lenses that have been tabled for now while they develop smart lens technology. That is where InWith’s buyout would come into play; to work on developing all technologies created. I have been a shareholder of EPGL for more than 5 years. They have… Read more »
Alex
Guest
0
Alex

So can someone please tell me what is the Proper name for this USA military company I was told it’s supposed to be called “Smart Contacts” but here in Australia they can’t find this name so me and sweet mum can buy shares?

Matt
Guest
0
Matt

It’s not a military company but rather a biomems startup that is developing the technology to make smart contact lenses a reality. They trade on the OTC, their ticker is EPGL
(EP Global Communications/EP Global Medical)

DavidR
Guest
0
DavidR
EPGL is the real deal. Dr Davd Markus is a genius that used to work for DARPA and Michael Hayes is a great CEO, met him personally, great guy!! Been a stock holder since 2010, Michael Hayes took over the company in 2012, complete restructure. They worked with CooperVision and after Cooper Breached the contract EPGL was awarded 100% ownership on those patents. Some of the Approved and Patent Pendings are…..ELASTIC CIRCUIT ……… AUTOFOCUS…. ….DEFINED SPACES INSIDE ELECTRONIC CONTACT LENSES…….CONTACT LENS CHARGING AND STORAGE…………ENERGY HARVESTING (Energy harnessed from the ciliary muscle)……DEFINED SPACES INSIDE ELECTRONIC CONTACT LENSES………………OPTICS AND DATA DISPLAY WITHIN… Read more »
Matt
Guest
0
Matt
The lens that they show a picture of is actually a soft hydrogel lens with an embedded flexible circuit manufactured using existing mass production methods. This was done when they had a development deal with Coopervision. Given that has already been a few years ago, saying EPGL has brought smart lenses to the last yard line is an accurate statement. The pending patents that continue to be granted will have this market locked down and guess who others will have to license from. I’ve been a shareholder since before the restructure, Dr. Markus and team continue to lead in this… Read more »
JOHANN
Guest
0
JOHANN

Agora financial seems to be joining the Stansberry Research team in trying to sell BS for big bucks both have been relegated to my junk mail folder

rmackintosh
Guest
0
rmackintosh

so on my own after the tease I identifed EPGL and bought shares at the open Monday 5/15 with limit order at about .023. Newsletter recommendation came after the close on Friday, rec with limit .055. Buyout offer seems to be .098. We will see, not a life changing event even with 50k shares.

R K Lakhotia
Guest
0
R K Lakhotia

Leave penny stocks or speculative stocks to gamblers and duffers. There are 101 ways to make money and lose money in stock markets. Buying hopeless hope is not one of them.
Normally an investment in very small cap stocks does not pay especially in today’s market which is very high. According to ‘experts’, the markets are due for steep correction.
You can still make money by buying long dated Put Options selectively.

Andre
Irregular
5

Hi – they also mention “Drone dust” co. that powers smart contacts ! – any idea what could that be ?

jimbecker
Irregular
56
jimbecker

It is highly unlikely that any company with the patents and technology mentioned in previous comments would be trading at 4 cents. Also a buyout at 9 cents? Absurd.

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