Jim Hodges has been posting on this board for the last week or so under the name “truenorthzone”.

Like many people, he boasts of achieving very high returns over the last extremely volatile 12 months. He likes to talk about his returns on virtual trading website called Co-vester. It doesn’t seem to occur to him that this was one of the most volatile periods in market history, and that this volatility produced many big winners and big losers. Most people simply don’t post their records on silly sites like Co-vestor. His record is nothing special, I mentor over a dozen college-age kids who achieved much higher returns in micro cap stocks over the last 12 months.

I don’t want to spend more than 5 minutes on this, because my girlfriend just about has dinner ready, so I will try to keep explanations succinct. Bottom line: Jim Hodges is a fool. Jim Hodges has repeatedly demonstrated that he does not understand even the most basic financial principles. Jim Hodges repeatedly posts false and inaccurate information.

For fun I will spend the next 4.5 minutes cutting and pasting quotes from Jim Hodges in Yahoo, Co-vestor, and his blog. The level of inaccuracy and incompetence on display is truly amazing:

Jim Hodges: “”You Think this co. has 50 MM in assets and 6M in liabilities, I Know this company currently has $18.62M in liabilities””

Truth: PRXI currently has Zero long term debt. The poster arguing with Jim Hodges was correct, PRXI converted their long-term debt (Convertible bonds) on September 30th and Oct 1st, 2009.

Jim Hodges: “”Another thing of interest that a clueless retard such as yourself would have never caught is that the transcript where the dipstick CEO claimed they had no debt was dated 5:28 pm EDT, Thursday October 1, 2009. The document that says THEY DO have debt came out AFTER the CEO made a false claim. The latest 10Q is dated 10/13/2009 and according to that, they have plenty of debt.””

Truth: As any Freshman business major knows, 10Qs capture financial data over a fiscal quarter, 10Ks capture data over a fiscal year. The 10Q which Jim Hodges is referring to was filed on Oct. 13th, however, the 10Q pertains to the quarter ended August 31st. Because the debt was converted on Sep. 30th and Oct 1, this debt information is (obviously) not captured on the Aug 10Q in the standard financial statements. Instead, it is covered in the “Subsequent events” area. From the latest 10Q “On September 30, 2009 and October 1, 2009, the Company exercised its right to convert the Notes into common stock because the closing price of its common stock exceeded $1.00 for a period of five successive trading days as reported on the NASDAQ Global Market. A total of 16,328,878 shares of the Company’s common stock will be issued in accordance with this conversion, which includes the outstanding Convertible Notes principal and accrued interest at a conversion price of $0.75 per share.” As is customary, but not mandatory, the CEO provided updates on how the financial condition of the company had changed in interim between the end of August and the release of the 10Q. Additionally the company released an official PR outlining the conversion. And the company discussed it on the earnings call. On top of this, Sellers Capital also made an SEC filing declaring that all bonds had been converted. The bond conversion has basically been broadcasted in bold print, across multiple communication mediums (multiple SEC filings, recent earnings call, official Press Release, etc.).

Jim Hodges: “”You know why 90% of all investors, including yourself, don't make any money? Because you don't read the fine line.”

Truth: It is Amazing, simply Amazing, that Jim Hodges is accusing others of not reading the fine print in the very same thread in which he makes so many statements which clearly indicate his lack of due diligence. How hypocritical, how embarrassing!