Whipped Cream Difficulties

“It is morally wrong to allow a sucker to keep their money.”

From Bloomberg News by way of the News@Ycombinator Twitter: the SEC has halted trading in shares of Neuromama Ltd.

Neuromana? Surely you haven’t heard of them: they have a current valuation of $35 billion, and haven’t submitted financials since 2013.

Shares of the company, based in a beach community just south of Tijuana, Mexico, have quadrupled this year to $56.25, giving it a paper value exceeding Tesla Motors Inc., Yum! Brands Inc. and Delta Air Lines Inc.

$56.25 a share? What do they do? With a name like Neuromana, you’d think maybe brain science or something like that: perhaps a promising cure for Alzheimer’s?

Neuromama’s website says the company operates in a broad range of businesses: a search engine, licensing “heavy ion fusion technology patents,” and Cirque-du-Soleil-style performances in Tijuana, to name just a few.

Cirque du Soleil sold 90% of the company to a group of equity firms last year for $1.5 billion. So a company that stages Cirque du Soleil knockoffs in Tijuana (“the happiest place on Earth!”) is worth $35 billion? But wait: they’ve also got a search engine! And “heavy ion fusion technology patents” whatever the hell those are (if they’re even valid patents).

“We’re in an industry that has high valuations,” Zubkis said in a telephone interview Monday, citing the company’s social network and oceanfront property.

Did he just say “social network” and “oceanfront property” with a straight face?

“Zubkis” is Steven Zubkis, who has his own “colorful” history. But for that, you’ll need to give Bloomberg their click: make sure to turn on your ad blocker first.

This entry was posted on Monday, August 15th, 2016 at 7:31 pm and is filed under Law. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.