Pump and Dump

Pump and Dump

This has been an interesting week for our friends in San Diego as over the past four trading sessions almost 9 million shares of Tandem (NASDAQ: TNDM) have exchanged hands. Well above the average daily volume of just above 400,000 shares per day. Shares opened the week at just 46 cents reached an inter-day high of 87 cents yesterday, closing today at 62 cents. Although there is still one day left in the week we would suspect based on this pattern tomorrow will be another down day.

As we suspected when this began this movement has nothing to do with the fundamentals of the company rather technical factors which resulted in computer generated buying then selling. Or as we like to call it the classic pump and dump.

The reality is time is running out for our friends and without a major capital infusion it will soon be good night nurse or goodbye Charlie. The company could extend their shelf life if they started cutting expenses and lowering their cash burn but Tandem is not your ordinary company. Nope rather than doing what’s prudent they continue to live with their heads buried in the sand. They continue to tell everyone; “Hey don’t worry everything is just fine.”

Frankly we are a little surprised that no one has yet to bring a class action lawsuit against the company and their inept management team and equally clueless board of directors. Rarely do we get to witness such ineptitude and this is one for the record books.

Besides cutting expenses the company could also start by replacing the team that created this mess in the first place. Bring in a new experienced team who could then get the company moving in the right direction. But this isn’t Tandem never has been never will be.

Asking investors to give this team more money is like asking to have a root canal without Novocain. Why anyone would throw good money into a bad team is beyond imagination. Yet this is the wacky world of diabetes so nothing not even Tandem getting more money would surprise us.

As Momma Kliff was fond of saying “Just when you think you’ve seen it all someone comes along and does something so stupid that you stop and wonder what’s coming next.”