Flaherty Financial News Newsletter #51
Flaherty Financial News Banner
A New Beginning at Blue Earth, Inc. (Nasdaq:BBLU).
The arrival of dynamic CEO Bob Powell started a new beginning at Blue Earth Inc. (Nasdaq:BBLU). A strategic reorganization backed by a world- class management team and an impressive energy savvy board has set the stage for this tiny tot to grow into   a significant independent power generation company. Blue Earth is on the brink of a major turnaround.                                                                      October 2, 2015 
Bob Flaherty Rides Again!  To join our financial family please visit our website www.flahertyfinancialnews.com and opt in as a reader to receive your next FREE issues of Flaherty Financial News and our sister Flaherty Special Situations. You can opt out any time.
Whodunit? I am one of the last living financial journalists who has edited or written over 100 articles on abusive short selling. (I stopped counting after 100.) To protect investors I testified before Congress to help bring badly needed short- selling reforms especially greater transparency and disclosure.
As an award-winning financial journalist I have sided with mischaracterized companies under relentless short attack and won. After my article "Hope for the horrible example" the stock of then friendless Digital Switch Corp.   rose over 10,000%. Together with my friend the late Pre-Paid Legal Services founder and CEO Harland Stonecipher   we   successfully repelled six separate bear raids over a seven year period starting at only a $1 and ending triumphantly when Pre-Paid sold out for $66.50  a share in cash!
Alas today another generation of abusive secret short- sellers is churning out new hit pieces to cripple or kill emerging growth start-ups with all their promise of new job creation and innovative services. Using smear tactics   these unscrupulous bear raiders target   micro-cap start-ups while these tiny tots are most vulnerable. That is before their operations   have reached critical mass and the concept company hasn't had time to become self-supporting with positive cash flow.
Sneak Attack! Are things like this really happening again? On October 21, 2014   a surprise   hatchet job, which was preceded  by front running by equally anonymous secret short sellers,  appeared in SeekingAlpha by an anonymous contributor the mysterious Pump Stopper blog. It  sharply depressed the stock of Blue Earth, Inc. (Nasdaq:BBLU - 0.66) from a high of $3.93 only a month earlier. Even worse, misinformation is still being spread. Obvious factual errors in copy have not been corrected. They  continue to damage and hurt Blue Earth's  credibility.
Sadly it wasn't unique. It was one of a series of cookie- cutter one-sided serial negative articles which recklessly mix fact with fiction to trash companies and drive down their stock. Tactics commonly include predicting the target company's stock will become worthless. Fears typically raised include looming bankruptcy, regulatory investigation and especially character assassination. Management, their financial backers and outside investor relations firms are unfairly smeared as stock dumpers   to panic investors into selling their shares and to frighten off new ones.
Let the sunshine in. In contrast to those vilified in the public company there is   zero disclosure of the identities of secret short-sellers. Who caused the big share trading bulges by profitably front- running their trading before the negative story was released to the public?  The masked writer of the article remains anonymous. Calling targets  for information,  he has pretended to work for a New York Hedge Fund by  giving a fake name and contact. The investing public deserves to know whodunit?
Opportunity knocks: Clearly it's important for investors to perform their own due diligence and to learn both sides. Good things are happening at Blue Earth. You won't learn about any of them from a totally negative blogger like SeekingAlpha contributor Pump Stopper or shadowy creatures on the Yahoo.finance Bulletin Board who pepper people with predictions of  impending bankruptcy and a worthless stock.
To the contrary, observe that the  management and the board of Blue Earth have been taking positive action to strategically restructure their enterprise. Importantly, they have  recruited a top highly successful executive to be new CEO. A short suggests the CEO didn't bother to do his due diligence! We asked why the CEO  came on board.
"We can do great things!" "I bought shares myself as a sign to our shareholders that I believe we can be extremely successful," volunteers new CEO G. Robert   Powell, explaining why he used his own money to buy 50,000 shares a day before he took over on September 1st. "It's a personal life's blood investment decision for me to come to Blue Earth and take over the CEO's role. After spending the last few weeks digging in with my team I am excited about what is going on. We can do great things."
Significantly, the options he accepted as part of his incentive package on 3.5 million shares are exercisable over the next four years at well above the current stock market price from $1 to $4 a share. Flaherty Financial News thinks that's fair. Bob Powell won't win unless his shareholders do too.
Raising Their Stakes. There has been no insider selling by management , board members led by Chairman Laird Cagan or investor relations professionals. Yet to panic current or prospective investors the mysterious no name attackers have been hitting below the belt. These masked men unfairly label Blue Earth's insiders as stock dumpers when it isn't true.
For example, publicist John Liviakis' firm Liviakis Financial handles IR for Blue Earth so he was accused of dumping all of his stock. The truth is he increased his own personal shares from 2.7 million shares, which appears in his voluntary SEC filing two days after the attack, to almost 3 million shares currently. John is not betting against his own client, which would be scandalous. So far he will have lost $9 million if Blue Earth's new CEO doesn't succeed.
The big guys can take care of themselves. Our hearts really go out to the helpless others who have been unfairly accused of various things in this disgraceful series of cookie cutter smears by hit and run  attackers ashamed to use their own names.  
Betting on the Jockey.   Among the many ways to pick winners at the race track is to bet on the jockey. It also works in the stock market. My friend Dan Lufkin was so optimistic that he had a glow about him. When he went into a difficult situation suddenly everyone there started feeling better. They became confident that they could win. Usually they did. The same was true of Mario Gabelli,  FedEx founder  Fred Smith or my pal Hal Geneen reviving ITT. No one would dream how gigantic and profitable their companies are today looking from their initial troubled entries.
Scoop: Blue Earth is on the brink of a major turnaround. In this issue see what's happening. Look  at newly restructured Blue Earth through the eyes of the brand new CEO who has a sterling reputation. We asked Bob Powell  our hardest questions about what concerned us most and we came away satisfied.
With an impressive resume and past performance he's a  change agent with an exceptional background to lead  an emerging independent power generation company. Bob had many other choices. He will  make a difference. That is not reflected in the  current price of  Blue Earth shares. Shares  are still changing hands at  bargain basement prices.                                    
The goal of a Flaherty Buy recommendation is a gain of 50% to 100% over two years. For patient investors shares of Blue Earth should exceed their old high of $3.93 and go up from there. Strategically restructured Blue Earth with a first- class management team and its new CEO who stresses good execution will become larger and more powerful over time.  Read along and see if you agree.-RJF
 A New Beginning at Blue Earth, Inc.     
G. Robert Powell, who has successful years of experience with giant firms as well as experience in the solar energy space, became new CEO to lead Blue Earth to the next level. Over the last four years it acquired and developed cutting edge technologies, recruited a world- class management team, a strong board of directors and upgraded  to a Nasdaq Stock Market listing. A strategic restructuring focused operations on alternative/renewable power generation, both combined heat and power (CHP) and solar energy. A vital yield company (YieldCo) called E2B Growth  to finance scalability was created and will be spun off to shareholders with plans for an IPO. So does a second spinoff tech play EnSite Power Inc. Non-scalable business units have been eliminated. Blue Earth is on the brink of a major turnaround.
By Robert J. Flaherty and Arnaldo Arroyo 
During a nationwide search that produced a number of candidates, the board of directors of Blue Earth, Inc. (Nasdaq: BBLU - 0.66) headed by Chairman Laird Q. Cagan determined that the ideal person to become the new CEO should possess a substantial knowledge of the solar energy industry in particular, among other key qualities for the top executive spot. Among the criteria are a great deal of energy experience, strong financial background, international experience, experience at large corporations, relationships with large financial institutions and substantial knowledge to assist creating a new publicly traded yield company (YieldCo) named E2B Growth. One is essential to help finance the scalability of the billions of independent power generation projects in Blue Earth's pipelines. When you convince the customer of an electric utility you can cut power costs  you often  also have to come up with a way of financing the idea or it's no sale.
Enter Bob Powell: On September 1st dynamic 52-year-old G. Robert Powell assumed the CEO   reigns to lead Blue Earth focusing on being an independent power generation company. Bob has over 25 years of experience in the global energy sector. After earning a degree in engineering and an MBA from the Georgia Institute of Technology, this CPA spent 15 years consulting with some of the largest energy companies at Arthur Andersen and then PricewaterhouseCoopers.
Then Powell was recruited to join PG&E (Pacific Gas &Electric), the largest electric utility in the U.S. and became its CFO.
When solar energy in the U.S. was taking off, Powell joined Solar Power Partners, one of the nation's early solar developers and  became its CEO. He built it and sold it to the nation's largest independent power producer NRG Energy Inc. There he worked with the  team to launch the first renewable energy YieldCo , NRG Yield Inc. (NYSE:NYLD). It currently has almost 4 gigawatts of energy generation assets, including wind, solar and thermal plants. Next Powell was  recruited to be President of Asia Capital Markets for SunEdison. Soon  he became President of SunEdison's largest business unit, North America. He has been a key player in three of the top ten most prominent YieldCos in the market.
As Bob Powell Sees It: What better way to see a company in transition than through the eyes of the new CEO who has just assessed the situation and decided to come on board?
Flaherty Financial News Editor Bob Flaherty caught up with Powell who was looking for new office space. "The intention is to move headquarters (from Nevada) to the San Francisco Bay area," Powell explained. "For clean energy San Francisco is ground zero. It is a spectacular place to be located if you are building a great enterprise which is focused on clean energy. That is also one of the reasons why I make the Bay area my home."
Question: "You are also recruiting a new CFO to be in the new office?"
Answer: "Yes. If we land a CFO who has YieldCo experience that would be spectacular but not essential. What I really want is a CFO who understands our power generation business and capital formation as well. Somewhere down the line we will be raising money."
Question: "Batter up! Here is the hardest question I will ask you today: Critics argue that Blue Earth is too small to create a YieldCo so the idea is 'ludicrous' because the resulting  high cost of capital would bankrupt the company and make the stock worthless. But if Blue Earth can't create a yield company to finance energy generation projects you can't achieve scalability and monetarize the billions of potential in your pipelines. Can a company of your size create a YieldCo?"
Answer: "We can absolutely," he laughed. "Being competitive even with a small cap company is  doable. I've seen it in my past for over 25 years in this business. We can be very successful in developing our own projects and very importantly being partners to people in a marketplace where their own large enterprises or institutions may be small. There are an enormous amount of great power projects out there.
"We can certainly create a YieldCo. While there's work to be done on this effort, I expect we will be able to create a vehicle such as this to allow us to finance our projects in a low cost manner. I see us having the ability to create something very special here and to be very competitive in the market."
Question: "Give more detail about your YieldCo experience?"
Answer: "For me the idea around YieldCo started in 2009 when I was running Solar Power Partners as CEO. To be successful I wanted to find a way to attract a low cost of capital so we could compete well in the marketplace. Besides coming up with ideas to reduce costs and generate power more efficiently you often have to be able to help finance the projects. Having worked in the oil patch I immediately thought of limited partnerships and restructurings. But what those of us who have been involved have done collectively is taken independent power generation assets and put them in a vehicle where we could take advantage of very low- risk, high- quality returns. Investors seeking yields love them.
"I spent a few years of research on that idea before I sold my company to NRG Energy (NYSE:NRG). The key was their embracing of it. NRG CEO David Crane wanted a YieldCo with an IPO. We spent time together on how we did it. That YieldCo, NRG Yield, Inc. (NYSE:NYLD) has become a great vehicle." (Currently it has a stock market value of over $1.5 billion which is impressive!)
"After being involved in creating the first renewable energy YieldCo, I've also been though my paces with other ones. Of course, you know finance is part of my background."
Question: "Here's another fast ball. How do you get Blue Earth moving? There is a tremendous contrast between trailing 12 month's revenues of under $22 million versus over $1 billion each in the pipeline of Blue Earth's Combined Heat and Power (CHP) and Solar Power businesses. And I do understand that what's in a pipeline has not yet been converted into backlog. Did you study the gap before you decided to take the job?"
Answer: "Sure. I saw that we can be really successful with the CHP and our solar business teams we have, hopefully strengthened by adding myself and others."
Question: "When will we see all that turned into big revenue?"
Answer: "For a growing power generating business revenue is not the right measure. Look at broader metrics. Growth in the pipeline is absolutely essential. On a short- term basis we need to ensure that we are building a great business from a growth perspective.
"Also study how well we are executing that pipeline. If we can demonstrate we have the growth, there is value in it and then we are creating a team that executes and takes ideas and opportunities to projects that are turned on and finally have revenues and are cash flowing, that's what to look for.
"Expect to see good execution and growth in all areas. That's how to judge if we are successful. Over time you will also see occurring financial results like very large revenues, high growth rates and added value.
"Still, you're right. Taking these pipeline projects and turning them on is very important. But it all comes from good execution results."
Question: "How are you doing on that? You only have one customer, a chicken products producer Colorado-based Pilgrim's Pride (Nasdaq:PPC) for which you have only built only one independent power plant plus a fraction of another?"
Answer: "You're referring to our existing relationship JBS, (which is their Brazil-based parent and the world's largest protein producer.) I personally visited the Sumter, SC power plant now online and operating and the other plant under process in Alberta, Canada. JBS is a great client, excited about the relationship. As I see it, they want us to hit the accelerator button and move forward.
"Because of what we have demonstrated with the first project and they see in the second, JBS sees a lowering of their energy costs opportunity that is substantial. That allows them to take money saved and put it back into their operations. As one of the largest food processors in the world they want to be very good at that. They see the power of what we have to affect them as we progress in the first two projects of the original seven. I expect to see we will do even more of their projects.
"If you build a very substantial enterprise you need to continue to build up a client base. In the CHP business we will be adding other great customers as well and expanding."
In July, David Prezioso joined BBLU as CEO of Blue Earth Combined Heat and Power, Inc. (BE CHP). Previously he was CEO of Ice Energy. Within two years, he had successfully secured Ice's funding and product lines, culminating in groundbreaking energy storage contracts with some of the largest utilities in the U.S.
One goal is more scalability where Blue Earth will get more clusters of power projects from large customers. Each office will have a team of engineers focused on performing energy analysis on multiple CHP customer sites and develop modularized, standard CHP packages to minimize engineering costs and to facilitate and expedite energy plant installations.
Blue Earth Combined Heat and Power designs, builds and operates combined heat and power plants for large manufacturing and processing facilities. It designs, engineers, and constructs appropriately sized co-generation systems to match the thermal requirements of the host facility.
Question: "Don't you have a smaller CHP business called Blue Earth Generator primarily up in the New York City Metropolitan area?"
Answer: "Their CHP business provides steam at rates very beneficial to the high rate Con Edison provides. We do that mainly for individual buildings in the City of New York or we will service existing power islands inside of buildings. That is a great book of business and we have several excellent  customers up there. It's a wonderful base to grow on right now."
Question: "Can you set more realistic goals? Some investors anticipated  that Blue Earth would be doing one sizable power plant constructed per month by now."
Answer: "I'm not prepared to get specific on that point yet. As I assess the situation here I will deliver a message our investors can believe in whether it is one plant a month or x new projects a year. As we get up and running investors will see we are executing on a great pipeline."
Question: "Can you shed some sunshine on your solar business? About 18 months ago Ruben Fontes from Chevron Energy Solutions took over your Photo-Voltaic division for engineering, procurement and construction of distributed solar energy generation projects for commercial and industrial customers. Now your website mentions a solar pipeline of over $1 billion, but no one understands what is going on."
Answer: "Here's some sunshine. Ruben Fontes and his team are amazing!   One of the reasons I thought it was a great decision to join Blue Earth is our really nicely growing solar business. As you see progress in solar in the future I believe you'll agree."
Question: "What is this strange business of independent power production instead of just continuing to rely on the regulated utilities and the power grid? Why does IPP even exist?"
Answer:   "IPP is a great business," he began carefully. Stressing that he had proudly worked inside of America's largest utility PG&E,  he   admires the folks who continue to run utilities. Utilities are doing their own great things to improve our environment. Also utilities  will always be important customers of IPPs including Blue Earth.
"Because of utility rate base regulation the business model is not one where utilities are incented to drive down costs for reliable energy. Independent power producers are beginning to change the equation. In this IPP business we go out and we are motivated to get power costs lower but we also have to serve and provide reliability because that is what our customers buy from us. That is a win for the energy consumer that historically had insufficient choices to power. So, independent power producers and providers offer a widening range of attractive alternatives.
"As the costs of solar technology, power storage and CHP (combined heat and power units) go down we offer solutions as an independent, not a utility. We can lower your costs, provide reliable power and then offer you a choice. Independent power produced distributed energy with the choice it provides consumers is absolutely the future of the electricity industry."
Question: "Doesn't politics complicate it by raising issues like climate change or trying to make the world better by reducing the carbon footprint?"
Answer: "Of course. Forget politics and I don't want to debate about climate change. When we spew particulate matter into our atmosphere it is not a cleaning or neutral effect. If you can offer clean and affordable energy then you hit a home run for all of us. We love clean streams. We need clean air to breathe. Why in the world not be involved in that effort? So now you understand why being CEO of Blue Earth sounded so exciting."
Question: "Have you known Blue Earth Chairman Laird Cagan long?"
Answer: "Not personally. My first real discussion with him was about joining Blue Earth. Laird is so impressive as a company builder also as the current chair of a world-class board of directors. He's a great businessman. He's done a wonderful job personally with many of the things in which he's been involved."
At Goldman, Sachs and Co. and Drexel Burnham Lambert Laird Cagan, a holder of three degrees from Stanford University, was involved in over 30 transactions valued at more than $15 billion. His success in building an ideal board for an energy company is also a homerun. 
Blue Earth's board includes Governor Bill Richardson, former Secretary of the United States Department of Energy who has been nominated several times for the Nobel Peace Prize. As two- time governor, Richardson made New Mexico the "Clean Energy State" by requiring utilities to meet 20% of New Mexico's electrical demand from renewable sources.
Director James Kelly served 38 years with the second -largest utility in the U.S., Southern California Edison. Director Mike Allman served 14 years at Sempra Energy, the owner of San Diego Gas & Electric and most recently as Chairman and CEO of SoCalGas, America's largest natural gas distribution company. Combining this duo with new CEO Powell, a former CFO of PG&E, puts previous senior executives from all three of California's largest public utilities in the Blue Earth team's lineup.
Strategic restructuring: Dr. Johnny Thomas resigned on September 1st as CEO and director of Blue Earth to devote his full time as CEO and a director of newly created Blue Earth technology subsidiary EnSite Power Inc. It is expected to be spun off to shareholders and then taken public in an IPO. EnSite was formed especially to expedite the commercialization of two of  Blue Earth proprietary technologies.
One: Patent-pending UPStealth® Battery Backup System is a lead-acid free, 98% efficient, intelligent digital environmentally friendly battery backup system that powers signalized intersections during loss of utility power. With its nickel-zinc chemistry the unique properties of the UPStealth® system which is specifically designed for data centers and telecom markets could apply to numerous vertical markets beyond the traffic industry including data centers and telecom. Its flexible battery packs can even bend to fit in odd spaces.
Two: Patented system architecture and Real-Time Intelligence EDGE (RTi EDGE) product line uses hardware and software to provide bi-directional communication and distributed control across a broad range of electro-mechanical systems including solar, HVAC, refrigeration, lighting, security and much more. Continuous commissioning optimizes system performance while collecting pre-emptive maintenance data. Doing so increases energy efficiency, equipment lifespan, and reduces energy usage and cost.
"This financing program is expected to allow us to achieve technology success without diluting our Blue Earth shareholders," said Dr. Thomas during his final conference call late last August as  Blue Earth's CEO.  
A New Beginning: Look what's ahead! Three ways to win. Investors of a record date to be determined are going to get spinoffs of two intriguing companies- a YieldCo named E2B Growth which should pay dividends and the newly created technology unit EnSite Power with environmentally friendly non-zinc bendable batteries and other disruptive ideas. At the remaining base stressing excellent execution,   new Blue Earth CEO Bob Powell leads a fine well motivated  team in place to focus on independent power generation with a credible plan. Wow! -RJF
It is critical for tiny start-ups like Blue Earth that the new CEO does not make a major mistake until this concept company has grown to the point where it is self- sustaining. Then it  can survive the unexpected knocks. That  risk  always accompanies   the excitement of building a new enterprises Because renewable energy projects are capital intensive Blue Earth must succeed in boosting its ability to continuously raise funds for project scalability by successfully expanding its YieldCo leasing company E2B Power.
The growth rate of the entire independent power generation industry would suffer if the next administration changes direction. There is still a degree of uncertainty within the investment community concerning our national commitment on tackling climate change by shifting America's dependence away from politically powerful  coal and  oil toward cleaner natural gas and the enormous benefits of  renewable/alternative energy like solar and wind. Remember President Reagan dismantled the earlier innovative solar efforts started under President Carter. Our current chaotic stop and start legislative leaders are way too short term for good business planning.
Blue Earth, Inc.
For more information please visit http://www.blueearthinc.com/
Liviakis Financial Communications, Inc.
Michael Bayes
Phone: 415-389-4670
For more information please visit http://www.liviakis.com/
FOLLOW UP: Contrarians to the core, my son Brian and I dedicated our August 27, 2015 issue of Flaherty Financial News Newsletter #50 to the unique approach of cancer immunotherapy pioneer CEL-SCI Corporation (NYSE:CVM-0.59) and called the stock "Bob's Best Bargain." Put simply CEL-SCI wants to boost the immune system of newly identified cancer patients for three weeks during the brief four week window before current global standard of care mandates that surgery plus radiation and/or chemotherapy commence. In contrast , all its rival cancer immunotherapy peer group aim to boost the immune system afterwards when the immune system has been debilitated or even destroyed by the toxicity from radiation and chemotherapy.
We reported that CEL-SCI remains "the most undervalued Phase III biotech" while management battles "the mother of all credibility gaps."
Its unique $50 million 24 countries  Phase III global head and neck cancer patient immunotherapy treatment trial advances. In 2017 when the 298th enrolled patient dies a 10% improvement in overall survival of  CEL-SCI's Multikine drug-treated patients versus non-Multikine treated patients only receiving the current standard of cancer care could send the stock price soaring over  $1 billion.
The stock price rose nicely. Now shares have fallen a bit. On the Yahoo.finance Bulletin Board a short seller using the handle  Cassandra mimics  the crazy prophetess  no one believed as she warned about the coming fiery fall of Troy. Using  the vilest language, he predicts the same fate for CEL-SCI.
Be of good cheer. On October 1st CEL-SCI reported enrolling 30 new patients in September for its Phase III head and neck cancer trial. That brings enrollment up to 570. Only 310 more to reach the goal of enrolling 880 patients in 24 countries.  Doing that seemed impossible two years ago. Now it is only difficult.
We  proudly keep CEL-SCI as a strong buy. Reaffirming what we wrote on August 27th, this stock remains  Bob's Best Bargain. If CEL-SCI achieves its major Phase III trial milestones in 2015 and 2016 their future looks very bright.-RJF  
FFN Logo
Flaherty Financial Newsletters Because They Work!

If you have a good company or overlooked fund or idea
which only needs more exposure to become better known, we know how to make enterprises come alive. We can put your activities and products into perspective. We will use  words  ordinary investors can understand.

 In addition to doing regular financial reporting, Flaherty Financial News Newsletter also offers for a properly disclosed fee sponsored distribution over the Internet of ideas we uncover to magnify your audience. We offer more detailed sponsored company profiles and separately BUY reports in our sister Flaherty Special Situations Newsletter. Both can be distributed beyond your talk to a small audience to over 45 million opt-in online investors in three countries. We will also carry banner advertisements. For details, please call our President and Publisher Brian Flaherty.  

Brian Flaherty at 914-539-0688 or email: dfbrian@yahoo.com

Disclaimer and Safe Harbor Statements
Disclaimer: This Flaherty Financial News Newsletter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected. We caution readers not to place undue reliance on any forward-looking statements and to supplement this newsletter with specific company SEC filings and their own research. Before purchasing any shares or making an investment, readers should review the company's SEC filings, including the most recent 10-K and 10-Q, available at www.sec.gov.
Please be aware that there is risk in every company stock that you buy. Coverage or other mention of a stock or fund in this newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. We are not investment dealers or investor advisers registered with the SEC or State Security Authorities. We do not guarantee all the information in this newsletter is correct or will be updated. Remember some errors are inevitable. Reproduction without written permission is forbidden. 
Flaherty Financial News Inc. received $15,000 in cash from Blue Earth, Inc. for an editorial and online distribution fee for Blue Earth, Inc. to be featured in this issue. Our own policy forbids editorial from buying or selling a featured stock until this issue is out at least 10 business days after its issue date, which in this case would be October 16, 2015. In cases where a report or profile is subsidized , readers should consider that sponsored material will not be as objective as non-sponsored editorial.
We did not charge a fee  for our Follow Up coverage on CEL-SCI.  However, please note that earlier  Flaherty Financial News, Inc. received $10,000 in cash and 20,000 restricted 144 shares from CEL-SCI Corporation for our August 27, 2015  coverage which is disclosed in our Disclaimer in that issue.
 As Flaherty Financial News editor I always reserve "Final Copy Responsibility" on what to include and what to leave out of every issue. The buck stops here! We have tried to be objective, but may have failed. We are not security analysts or stockbrokers engaged in buying or selling, but financial journalists with all the many failings of that profession. You readers must decide the merits of each investment yourself and whether to invest. -Bob Flaherty, Editor

Flaherty Financial News Inc. (FFN) and its newsletters Flaherty Financial News and Flaherty Special Situations are not registered as broker dealers or investment advisers with the U.S. Securities and Exchange Commission or any state securities authority. Our newsletters and their information and content providers make no representations or warranties of any kind in connection with the subject matter, performance or suitability of the information contained in the publications for any purpose and are not liable for the timeliness, accuracy or completeness of the information. The information is provided for general information purposes and is not a substitute for obtaining professional advice from a qualified person or entity familiar with your personal circumstances. Please seek the help and advice of professionals as appropriate regarding the evaluations of any specific security, report, opinion, advice or other content. FFN is not responsible for trades placed by recipients. All opinions expressed, information and data provided are subject to change without notice. FFN, its officers and its employees may have positions in and may from time to time make purchases or sales of the securities discussed or mentioned by FFN. (However, we will avoid front running and the buying or selling of any security about to be discussed until ten business days after our particular report is released to the public.) FFN shall have no liability for any newsletter that is lost, intercepted or not received in a timely manner, or not received at all, for any reason. -RJF 

Dear Friends: Identifying a major turning point early at a tiny company is one of a financial journalist's greatest challenges. Doing it is a thrill! A year  from now, we will deserve a bow or boo.
Bob and Brian Flaherty
Flaherty Financial News Inc.