NEW YORK ( TheStreet) -- Maybe "FU" was the most appropriate ticker for FAB Universal Corp. ( FU).
Christopher J. Spencer, who showed unusual timing dumping shares of FAB Universal, a company he runs that some have called the "Chinese Netflix" ( NFLX) but which is now under a cloud, is buying up shares in a spinoff called Future Healthcare of America, which trades over the counter as FUTU, where he is also CEO.
Spencer bought a total of 100,000 shares of Future Healthcare of America Thursday and Friday last week, paying just over 11 cents per share according to regulatory filings released shortly before the close of trading on Friday. Spencer had previously bought 100,000 shares Nov. 27, paying nine cents per share. Following Friday's purchases, Spencer owns just shy of 750,000 shares.
Shares of Future Healthcare of America, which according to its latest 10-K provides home healthcare services in the Western United States, closed Friday at 10 cents per share and hit a high of 15 cents Monday morning but were worth 10 cents in early afternoon trading.
FHA is a spinoff of FAB Universal, a digital media entertainment company with headquarters in Pittsburgh that sells DVDs and video games in China. Following a playbook established by several other Chinese "reverse merger" companies, FAB got its U.S. listing by selling itself to Pittsburgh-based Wizzard Software Corp. Trading of shares of FAB Universal was halted Nov. 21 following allegations by short sellers that the company had sold bonds in China without disclosing the sale to the Securities and Exchange Commission. The company initially denied the allegations but then stated in a Dec. 10 SEC filing that the audit committee of its board of directors "concluded that the Company's unaudited interim consolidated financial statements as of June 30, 2013 and September 30, 2013... should no longer be relied upon."
Spencer sold shares of FAB Universal Corp in September during a very brief and dramatic run-up. Shares of FAB rose 197% from Sept. 12 to Sept. 26, when they hit a multi-year high of $11.48. On Sept. 25, Spencer sold 150,000 shares, about 40% of his holdings, for $9.66 per share. Less than two months later, on Nov. 21, the shares were halted at $3.07 and haven't traded since.
FAB, which counts well-known investor Jim Rogers on its Board of Directors, was been described by Spencer in a conference call as "iTunes meets Redbox which meets Netflix"
Calls to FAB headquarters in Pittsburgh went unanswered. Stephanie Prince, an outside spokeswoman for FAB at a public relations firm called FHA, said the company "isn't answering any questions from reporters right now." Calls to Arthur Douglas Inc., a PR firm based in Florida that works for FHA, also weren't returned.
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