Micronet Enertec Technologies

Kurta Law is investigating broker recommendations of Micronet Enertec Technologies (NASDAQ: MICT). These investments were high-risk and could have posed an unsuitable level of risk for many investors. The Financial Industry Regulatory Authority (FINRA) defines unsuitable investments as investments that do not fit the investor’s risk tolerance, financial goals, and liquidity needs – among other factors. Investors who specified they wanted moderate or conservative investments should not have shares of Micronet Enertec Technologies in their portfolio.  

If you have concerns about your Micronet Enertec Technologies investments and believe you may have suffered losses as a result of broker misconduct, contact Kurta Law today. Call (877) 600-0098 or call info@kurtalawfirm.com.  

The Offering 

The prospectus dated April 23, 2013, announced an offering of 1,620,000 shares of common stock and warrants to purchase 810,000 shares of common stock. Warrants give investors the right to purchase shares of stock at a specified price by a certain deadline.  

Micronet Enertec Technologies priced their common shares at $5.00 per share, despite the company’s history of trading for less than $1.00. Today, shares of Micronet Enertec Technologies trade for less than a dollar.  

What is Micronet Enertec Technologies?  

According to the prospectus, Micronet Enertec Technologies develops and manufactures “rugged mobile computing devices” for use in “challenging work environments.”  

Risks Associated with Micronet Enertec  

The following risks are clearly disclosed in the prospectus. Any broker knew or should have known about these risks.  

Volatile Securities  

Micronet Enertec Technologies stated that their stock prices were “likely to be volatile,” which could lead to substantial investor losses. This volatility could stem from announcements of developments related to their business, announcements of technological innovations, or new products introduced by their competitors, among other possibilities listed in the prospectus on page 14.  

Potential Economic and Military Instability in Israel  

Micronet Enertec Technologies’ principal offices and operating facilities are located in Israel. Armed conflicts could adversely affect the company’s operations.  

Management Conflicts of Interest 

Micronet Enertec Technologies was dependent on the services of its executive officers, whose conflicts of interest may not permit the company to effectively execute the business strategy. The business would suffer if any of the executives could not devote the necessary time to the business.  

Operational Risk  

Developing new, sophisticated technologies involves significant risks. While the business had some insurance, it was not possible to have coverage for every possible operational risk and liability.  

Securities Analysts  

Micronet Enertec Technologies relied on research published by securities analysts to increase interest in their common stock. Without any research, or with unfavorable coverage, the stock’s prospects would suffer.  

Aegis Capital Corp. Underwriting    

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.  

Kurta Law Can Help  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.