***We no longer follow the companies mentioned in these backdated newsletter issues. These samples of past newsletters are generated to give you an idea of what you can expect when you subscribe. Please do not use any of the information contained in the samples below as current advice. If you would like to purchase a newsletter subscription, please click here. ***
Hello Readers,
Since the last Newsletter, we closed one position for a gain.
PLURISTEM THERAPEUTICS (3/20/11). Closed position 7/11/11 at $3.65 for a 56% GAIN.
A report that stem cells grown from bone marrow replaced a man’s cancer-ridden windpipe helped propel many stem cell stocks with Pluristem Therapeutics being one of them as it pierced our 50%-plus threshold.
Remember what we have been saying for the last few months? That the markets have been in a quandary about the future without QE2, which caused much fear among traders. However, we said no need to worry because the Fed would dream up something else. Well, on July 13, Chairman Ben alluded to QE3 while testifying before a House Committee, and, presto, the market went on a minor tear. From our perspective, the only event that can keep this market down for a prolonged period is the collapse of some European economies, which is becoming a distinct possibility.
Here are the headlines since the last Newsletter about companies in the Current Portfolio; dates in parentheses are when we first recommended them. We are not giving updates about companies on the “Endangered List” unless we believe the news to be highly significant.
RXi Pharmaceuticals (RXII)(7/5/11). Strengthens NeuVax (E75) patent portfolio.
On Track Innovations (OTIV)(6/20/11). Company subsidiary PARX France announces partnership with Q-Park, one of France’s leading parking operators, to bring EasyPark to municipalities in that country.
Idera Pharmaceuticals (IDRA)(6/5/11). Stock takes a mild hit as Merck abandons study of IDRA’s cancer drug. However, Merck plans to continue with other studies of the drug.
NeoStem (NBS)(5/20/11). Signs definitive merger agreement to acquire Amorcyte in equity transaction, which puts pressure on stock price.
Energy Recovery (ERII)(5/5/11). Consolidates North American operations and sets earnings call for August 4.
Innodata Isogen (INOD)(5/5/11). Sets earnings call for July 27. U.S. Commodity Futures Trading Commission (CFTC) selects company’s docGenix Division as subcommittee member. Launches docGenix Division, proving risk management data solutions to the financial services industry.
Biostar Pharmaceuticals (BSPM)(4/20/11). To present at the Global Hunter Securities conference on July 19.
Jamba, Inc. (JMBA)(3/20/11). Opens store in the Baltimore Washington Airport.
Network Engines (NEI)(2/5/11). Sets earnings call for July 28.
Sprint Nextel (S)(1/5/11). The usual several dozen stories; of some note is that one analyst thinks that a Sprint iPhone deal appears likely.
Trident Microsystems (TRID)(12/20/10). Slates earnings news for July 28.
SuperGen (SUPG)(12/5/10). FDA accepts DACOGEN (Decitabine) sNDA submission in acute myeloid leukemia.
Pixelworks (PXLW)(11/20/10). To announce earnings results on July 21.
Inovio Pharmaceuticals (INO)(10/20/10). Demonstrates positive immune responses in Phase I clinical trial of SynCon H5N1 influenza vaccine and launches multi-subtype influenza vaccine Phase I. Expands DNA vaccine intellectual property license with University of Pennsylvania. Claims that its synthetic DNA vaccine protects against HIV in non-human primates.
Blue Phoenix Solutions (BPHX)(10/20/10). Extends $1 million contract with a tier one Chinese financial institution.
ProPhase Labs (PRPH)(10/5/10). Receives NASDAQ notice about minimum bid requirement; we are not overly concerned about this, just yet.
NovaBay Pharmaceuticals (NBY)(4/20/10). Provides business update and closes $5.2 million secondary.
China Direct Industries (CDII)(4/5/10). To present at the Global Hunter confab on July 18.
Cerus Corp (CERS)(3/20/10). Plans to announce earnings on July 28.
CytRx (CYTR)(1/5/10). Announces safe administration of high doses of Doxorubicin with its tumor-targeted drug, INNO-206. Receives FDA Orphan Drug Designation for INNO-206 for treating soft tissue sarcomas.
Anadys Pharmaceuticals (ANDS)(8/20/09). Brokerage firm Brean Murray initiates coverage. Gets U.S. patent covering Setrobuvir.
U.S. Geothermal (HTM)(8/5/08). Completes Well RRG-7 repair at Raft River Project.
MicroVision (MVIS)(5/20/08). Sets earnings call for July 21. Unveils SHOWWX+ HDMI for mobile big-screen sharing and visual collaboration. SHOWWX+ shipping in Japan in third QT.
Move, Inc (MOVE)(1/5/08). Midwest Real Estate Data (MRED) enters into licensing pact for Move’s FIND.
LRAD Corp (LRAD)(10/5/07). UH-60 Blackhawk helicopter-mounted LRAD 1000X deployed by Colombian Air Force. LRAD-RX being installed at Pentagon main entrance. Plans to release record numbers the week of August 8.
YM Biosciences (YMI)(11/5/06). Files preliminary base shelf prospectus for $125 million.
Our picks for this Newsletter are a NASDAQ-listed drug maker and a software/services provider, also trading on the NASDAQ.
ALLOS THERAPEUTICS, INC. (NASDAQ: ALTH) – $2.00. Twelve-month hi-low has been $6.79 – $1.84. Based in Westminster, CO, with about 150 employees, this drug maker has 106 million shares outstanding, $96.15 million in total current assets, $103.3 million in total assets, little debt, and $16.68 million in total liabilities. Institutional ownership is around 87%. Four analysts rate the stock a “strong buy” and four have it as a “hold”. www.allos.com
If Allos Therapeutics, Inc. has a drawback it is that, for now, it is a one-drug company. However, Allos has a pretty nifty following of analysts, a bucket of money, and has started to ring up decent revenues with its only marketable product.
Founded in 1994, and public for over ten years, Allos develops and sells anti-cancer therapeutics. Its main product is FOLOTYN (pralatrexate injection), a folate inhibitor for treating patients with relapsed or refractory peripheral T-cell lymphoma and cutaneous T-cell lymphoma; and FOLOTYN is the first and only FDA-approved drug in the U.S. for treating this condition. Allos is expanding FOLOTYN’s uses as it also offers the product as a single agent and in combination therapy regimens in various hematologic malignancies and solid tumor indications, including breast and bladder cancer. The company has a strategic collaboration agreement with Mundipharma International for the co-development of FOLOTYN.
In mid-June, Allos reported results from a retrospective analysis of data from the company’s pivotal PROPEL trial which suggested that treatment with single-agent FOLOTYN may result in increased response rates and progression-free survival relative to the immediate prior line of therapy in patients with relapsed or refractory T-cell lymphoma (PTCL).
Allos is somewhat atypical of most small drug makers in that it has revenues, but those are coupled with some mega-losses, which is typical of the genre. For 2011, the company expects net product sales of $48 million to $55 million with operating losses of nearly $98 million.
We like this for the balance sheet, the analysts lined up behind the company, and we like the fact that Allos is exploring other uses for FOLOTYN.
Our 24-month target for the stock is $3.50 to $3.75.
For more information, contact ALTH’s Monique Greer at 303-426-6262; investorrelations@allos.com
COVER-ALL TECHNOLOGIES, INC. (NASDAQ: COVR) – $2.44. Twelve-month hi-low has been $3.37 – $1.17. Based in Fairfield, NJ, with about 80 employees, this software/services provider has 25.18 million shares, $8.86 million in total current assets, $19.95 million in total assets, little debt, and $3.4 million in total liabilities. Institutional ownership is almost nil. One analyst rates the stock a “strong buy”. www.cover-all.com
There is a chance that Cover-All Technologies, Inc. may be nearing a turnaround. The stock price had been in a flat-line mode for much of the last five years, but it has only been over the last year or so that the company has shown revenue growth along with earnings; yes, earnings.
Founded in 1971 as Warner Insurance Services, and public for almost fifteen years, Cover-All provides software products and services for the property and casualty insurance industry primarily in the U.S. and Puerto Rico. These products and services focus on the functions required to underwrite, rate, quote, issue, print, bill, and support various lifecycle insurance policies. Its software products include My Insurance Center (MIC) that provides an integrated platform with baseline common insurance functions; MIC Rating & Issuance, a policy rating and issuance component of MIC that is designed to accommodate various lines of property and casualty insurance; and various insurance software components of MIC. The company also provides professional services that support customizations, conversion from existing systems, data integration with other software or reporting agencies; and other technical services. In additional, it offers ongoing support services.
In early June, Cover-All announced the general availability of its NexGen Business Intelligence Suite, which can be leveraged either as an integrated component of MIC Business Acquisition Platform or as a stand-alone solution that can leverage data from virtually any insurance source system.
For FY2010, ending 12/31/10, revenue was $17.45 million with $2.95 million in net income compared to FY2009 revenue of $14.51 million and $3.91 million in net income. During the 1stQT of the current FY, ending 3/31/11, revenue was $5.19 million with $1.2 million in net income. So, the company is on pace to continue revenue growth for FY11. It has been profitable for at least the last four quarters.
Yes, this can be called one of those boring stock plays, which can probably explain why the stock price has lingered at current levels for so long. However, one has to think that, at some point, they will be rewarded for continued growth and profits.
Our 24-month target for the stock is $4.00 to $4.50.
For more information, contact COVR’s Ann Massey at 973-461-5190; amassey@cover-all.com
Look for the August 5, 2011 Newsletter to be posted on 8/1 or 8/2.
Thank you,
George