October 17, 2019

RE: Another hypothesis

To anyone who might be interested,

Financial markets are mysterious to me. Adam Smith’s invisible hand is always working,
as are players who might profit from situations and opportunities, both legally and illegally.
Some tangible phenomena are caused by the unseen hand and some are caused by players. Here
are a couple tangible phenomena that seem certain to be caused by players.

1. Opko Health (OPK) has had its share price decline from 19 to 2 since its peak in 2015.
There has been a huge short volume all during this decline. However, while most of the
money has already been made on the short side, there is still a huge short interest.
2. PolarityTE (PTE) has had its share price decline from about 40 to 3 since its peak in
2017. There has been a huge short volume all during this decline. However, while most
of the money has already been made on the short side, there is still a huge short interest.

Here are some known facts that may help explain the short interest at OPK and PTE.

1. Phillip Frost is the leader of a white collar gang that specializes in market manipulation,
especially in pump and dump (P&D) securities frauds.
2. The Frost gang (fraudsters Phillip Frost, Barry Honig, Michael Brauser, Harvey Kesner,
et al.) have been involved at both OPK and PTE.
3. Mark Cuban is on record as having shorted both OPK and PTE.
4. Cuban’s business partner is Chris Carey, aka “Sharesleuth.
5. Sharesleuth has written about one aspect of the Frost gang’s stock promotion machinery -
a network of paid writers.
6. Sharesleuth has written about the P&D securities fraud at PTE, as well as Frost gang
P&Ds at RIOT, MARA and USAU.
7. Frost gang members (Frost, Honig, Brauser, et al.) have been charged by the SEC with
civil securities fraud for P&Ds at three companies (BZNE/COCP, MGTI and RIOT)..

And here are some of my observations and opinions.

1. Cuban has likely already made a lot of money shorting OPK and PTE.
2. Frost gang P&D companies often go essentially to zero.
3. OPK and PTE both appear to be headed to zero.
4. Further SEC charges against Frost gang members appear certain.
 5. Criminal charges against Frost gang members appear certain.
6. There is a greater risk:reward ratio in shorting overpriced PTE from 3 to zero than there
was shorting overpriced PTE from 40 to 3.
7. There is a greater risk:reward ratio in shorting overpriced OPK from 2 to zero than there
was shorting overpriced OPK from 19 to 2.
8. Cuban can afford these risks.

Given this background, my hypothesis is blindingly obvious, but I’ll say it anyway:
Mark Cuban may be shorting OPK and PTE all the way to zero. If my hypothesis is correct, I
want to be among the first to say, “Well done, Mark Cuban.”

Lee Pederson