More insanity

More insanity

Ok we’ve said it before and we’ll say it again – what’s the definition of insanity – doing the same thing over and over but expecting a different result. We were reminded of this when we read the following;

“Echo Therapeutics, Inc. (Nasdaq: ECTE), a medical device company focused on non-invasive continuous glucose monitoring (CGM) and associated technologies, today announced that it entered into a Securities Purchase Agreement with certain institutional and other accredited investors for the sale of up to $5,145,000 of secured convertible notes and warrants to purchase common stock in two tranches. The initial closing of $1,787,000 occurred on January 29, 2016.  The second closing of $3,358,000 is subject to shareholder approval. Certain previously issued short-term bridge notes were surrendered as payment of the initial closing purchase price.”

Now we don’t want to cast any aspersions on the folks at Echo but seriously this company is just the latest example of how stupid some investors can be. Although it should shock no one that continuous glucose monitoring is one of the hottest areas in diabetes. It is also not shocking that so far no one, not even reputable companies, have come anywhere close to developing let alone commercializing a non-invasive continuous glucose monitoring system.

Echo is almost the poster child for how these scams work. Yes, like the others it has a way cool website www.echotx.com. Like the others there is lots of sizzle but no steak. Like the others this is not the first time around for the management team, far from it. Like the others they have raised lots of money but have nothing of substance to show anyone. And most of all like the others they continue to raise even more money as there are still plenty of investors who don’t even bother to do much in the way of due diligence preferring instead to believe the hype, the dream of non-invasive glucose monitoring.

Seriously people we recommend going to the web site – the investor section in particular and read some of the 10Q’s 8K’s or anything else. Then take a look at who’s running this company and do a quick Google search on these people. Again we do not wish to cast any aspersions yet we want to illustrate how with a few mouse clicks and just a modicum of effort investors could learn the truth.

Listen if anyone really wants to understand this quest for the Holy Grail just Google non-invasive glucose monitoring or non-invasive continuous glucose monitoring. Although we don’t want to spoil anyone’s fun we will tell you something you won’t find, an honest to goodness success story. Any company that has successfully developed let alone commercialized a real non-invasive glucose monitor either conventional or continuous. What you will find is hundreds and we don’t think we are exaggerating here of companies who have tried and failed. Companies that have bilked investors out of billions and again we don’t think we are exaggerating here.

This quest has been going on since even before we began publishing which should tell everyone two things, we’re getting old (and have the gray hairs to prove it) plus PT was 100% correct there really is a sucker born every minute.  As Momma Kliff says and she has been quoted by so many “There is no cure for stupid.”