In a post last March ("Applying the Altman Z"-Score Model to a Non-Manufacturing Company"), I mentioned a company called Vertical Branding (at the time it was on the OTC BB; now it's on the Pink Sheets: VBDG.PK). I noted at the time that the Altman Z"-Score model predicted bankruptcy for the firm and that when I had shared this information with the folks on the Investor Hub message board for the stock, I had gotten the Enemy of the People treatment.
A few days after that March post I was indefinitely banned from Investor Hub's VBDG message board, by a moderator who was indicted for securities fraud a few months later. After the close today, Vertical Branding released a "corporate update". Excerpt:
The company's restructuring efforts have failed to achieve expectations or intended results and the company lacks sufficient cash flow to maintain normal operations and meet its current financial obligations. The company's Board is presently reviewing the company's options for reorganization, recapitalization or other methods of deriving value from the company's assets to satisfy the company's liabilities. Because of its working capital shortage, the company has substantially reduced operating expenses by laying off all but three employees and by suspending various operations.
In this case, my getting banned for posting fact-based, bearish comments about Vertical Branding didn't do much good for those who continued to hold the stock. Investors need a site where they can post and read a full range of comments about stocks, including bearish or skeptical comments. Soon they will have one.
Update: The site I alluded to is live now: shortscreen.com. Use of the message boards on that site is free; you just need an e-mail address to sign up here.