The Morning Read

Here are some good reads to start your morning.

• Emerging currencies drop as stocks fall, treasuries gain - Bloomberg
• Netflix-trafffic feud leads to video slowdown - WSJ
• GM locks up aluminum supplies - WSJ
• Affordability backwards - Alphaville
• New push to throw assets overboard - WSJ
• Ruble hits record low against the Euro - WSJ

 "You can always count on Americans to do the right thing - after they've tried everything else."
-Winston Churchill

Today could prove interesting, my fellow market participants. Weakness in European markets spurred on by violence in Ukraine and Thailand might test bullish resolve on our shores.

Here's a quick look at where US futures stand:

/ES -6.25 to 1,831.25, /YM -50.00 to 16,057, /NQ -7.25 to 3,667. Gold futures also slightly lower, trading down 0.51% to 1,317.7.

In this week's research note (inquire if interested), I highlighted the irrational valuation that has been placed on the shares of 3-D Systems Corp (DDD - I currently have no position). This company makes 3-D printers, which have received a lot of attention in the past 18 months.

Not long ago, 3-D Systems' CEO Avi Reichental commented on the company's potential in 3D printing of human tissues and full-scale human organs, saying it is "immediately achievable... not a question of if it will happen, but when and how."

Immediately achievable? Let's ignore the vast sea of implications that technology (and that statement) would create for a moment.

It seems this hyperbole and borderline illegal corporate cheer-leading has spilled over to another name: Organovo (ONVO). There is a fascinating piece of research on SeekingAlpha (here) done by Richard Pearson that explains in great detail that ONVO's business is substantially misunderstood and recent share price gains are coming from shameful "pump and dump" operations around the world (think "Wolf of Wall Street"). Basically, ONVO went from being worth $2/share roughly 16 months ago, to just under $10/share now on nothing more than an announcement that the company presented demonstrated retention of key liver functions in bio printed tissues.

I strongly encourage you to read the note.

ONVO has cash of approximately $0.58/share, assets totaling $1m, and no real commercial revenues. Current market capitalization? $770m.

This isn't a coin flip. It's a fraud.