Is the latest “John Bell” Stock Pick “HDSI”?

One of my readers has suggested that the pick to be announced on 26th September 2012 might be either HDS International (HDSI) or WAVX. I had a quick look at WAVX and it has been in the market for a while and does not fit the fingerprint of our mysterious “John Bell”. I have taken the opportunity to do a preliminary examination of HDSI. So far, all of the pieces fit a classical “John Bell” Penny Stock SCAM.

HDS International is a reverse merger situation, is registered in the State of Nevada, which is a favorite of “John Bell” and Shane Whittle, and all of its issued and outstanding shares are owned by Hillwinds Ocean Energy. Sounds a lot like JAMN. HDSI claims to be in the developmental stages (sounds a lot like TFER) of producing petroleum substitutes and protein products from algae biomass. Of course, a number of companies have already entered into this market and appear to prefer to be situated in the deserts of the Southwest. Why HDSI chose to be located in a “business front” office in Providence is any ones guess.

In the Form S-1, which was filed on 09th July 2012, HDSI stated that: “We have no commercial contracts and no existing revenue stream.” Of course the company does have an abundance of debt and liabilities. This was precisely the situation with JAMN and TFER. The company claims that the President, Principal Executive Officer, Secretary, Treasurer, Principal Financial Officer, Principal Accounting Officer and sole Director is Tassos Recachinas, age 29. The biographical sketch of Mr. Recachinas is as follows:

Mr. Tassos D. Recachinas became our sole officer and director on August 16, 2011. Mr. Recachinas, through his affiliates, is also beneficial owner of the majority of our issued and outstanding common stock, and all of the issued preferred stock of the Company, making Mr. Recachinas our controlling shareholder. Mr. Recachinas is Managing Member of Sophis Investments LLC since June 2008, a financial services firm providing investment management as well as strategic advisory services to institutional and individual clients. From January 2007 to March 2008, Mr. Recachinas served as an Investment Analyst at Pirate Capital LLC, an activist and event-driven hedge fund manager. From July 2005 to December 2006, Mr. Recachinas served as Equity Research Associate at Raymond James & Associates, where he provided institutional equity research coverage on technology and defense companies. Mr. Recachinas received a Bachelor of Science summa cum laude Mechanical Engineering, concentration in Aerospace Engineering, from The George Washington University, including one year of engineering and economics studies at Oxford University. Mr. Recachinas previously served as a member of the Board of Directors and member of the Compensation and Strategic Review Committees of The Allied Defense Group, a multinational defense and security company. Based on the foregoing, the Company determined that Mr. Recachinas was duly qualified to serve as a member of the Company’s board of directors.

In its 19th August 2011 issue, reported that HDS International had obtained a license to use the ocean-based algae technology belonging to Hillwinds Ocean Energy. Specifically, the magazine stated that:

HDS International Corp. has announced that it has acquired an exclusive license relating to carbon capture, carbon sequestration and industrial algae-for-biofuels technologies from Hillwinds Ocean Energy, LLC. The acquired technology can be applied for ocean-based biomass production through the fixation of CO2 in biological systems, and can be used to remove large volumes of CO2 from the waste emissions of a carbon emitter and also used to transfer large volumes of CO2 to photosynthetic organisms efficiently.

Under the terms of the license, HDS will seek to apply its technology within its licensed territory to develop fully integrated carbon capture, sequestration, and algae-for-biofuels production and processing facilities.

The Company also announced that Tassos D. Recachinas, an executive with experience in development, operations, finance and business management, has been appointed the President, CEO, CFO, Secretary, Treasurer and a Director of the Company. Mark Simon, the Company’s sole officer and director prior to this transaction, resigned from all positions with Company.
HDS International Corp. is a green technology company providing carbon capture and sequestration solutions, Based in Providence, RI, HDS also develops commercial algae farming solutions for the production of renewable, sustainable, and economically viable biofuels, bioproducts, and carbon elimination. (19th August 2011) (the reference may be found at ). It may very well be that Hillwinds Ocean Energy eventually acquired all of the shares of HDSI because of this licensing arrangement.

The key question here is: who ownes Hillwinds Ocean Energy? As of 20th September 2012, my bet is Shane Whittle.

On Friday and Saturday, 21 and 22 September 2012, I shall update his Weblog entry for HDSI.

Of course, I could be wrong. However, with the shares now trading at 0.30¢ per share, even a small amount of attention will send the share price through the ceiling.

I hope that this helps.

Nathan A. Busch

4 Responses to “Is the latest “John Bell” Stock Pick “HDSI”?”

  1. Are you sure about the share price of HDSI? Is it 30 cents or is it more like “point” 35 cents (.35 cents)? Am I looking at the wrong ticker symbol? The ticker symbol I am looking at is trading today at close to its 12 month low (.0030), with a 12 month high of 16.8 cents.

    With Mr. Bell calling for a 500 per cent increase in the share price, HDSI would only have to move (at .35 cents per share) to just North of 2 cents a share to achieve that goal.

    You might call this reply; my two cents worth.

    Please advise if I am wrong! I don’t want to be spreading false information.

    Thank you.

    • Dan:

      You were looking at the correct ticker symbol, HDSI. The price is zero point thirty cents.

      What leads me to continue thinking about this company is the following: whilst the company might be promoted as a “development” company and the stated reason for selling shares is to raise funds to implement the algae bioreactor technology, the company will not receive a single pence of the amount raised by sale of the shares. This is because, like Jammin Java Coffee, the company will not have actually owned the shares when the Penny Stock SCAM is initiated.

      My Friday has been very busy and it is now quite late. Hopefully more on Saturday.

      Nathan A. Busch

  2. The volume traded for HDSI in the recent months has been practically zip. It was pumped back in April, it appears. Then the volumes were high and so was the price, relatively speaking.

    It seems that if there were to be “waves” of promotion, like there were for JAMMN, then in September we would have seen much more trading activity already. I cannot believe that the promotion is just in its beginning stages.

    What am I missing?

    Thank you —

    • Dan:

      It is possibly that the latest “John Bell” stock pick is not HDSI. That HDSI is currently a dead stock would explain the patterns that you have observed. However, If that were the situation, then why would Hillwinds Ocean Energy still be registered as holding all of the shares?

      Nathan A. Busch

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