***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 four more positions; three for gains and one for a loss.
ADEPT TECHNOLOGY (9/5/09). Closed position 1/14/10 at $3.85 for a 50% GAIN.
CYCLACEL PHARMA (1/5/10). Closed position 1/7/10 at $1.85 for a 81% GAIN.
OCCAM NETWORKS (8/5/09). Closed position 1/6/10 at $5.96 for a 54% GAIN.
ORE PHARMA (4/20/07). Closed position 1/6/10 at 55 cents for a 95% LOSS. (price reflects reverse split)
Ever since picking it back in September, 2009, Adept Technology had a pretty steady upward climb that was further torqued on news that the company landed a $3.2 million contract for robots; the stock pierced our 50%-plus threshold and out we went. A nice start to a new year is to have a brand new pick go bonkers within a week after posting it, and that is what Cyclacel did on news that its Seliciclib was found effective against lung cancer cell lines including K-RAS mutations; the stock surged to over $3 right after we closed it and last we checked, it looked to be coming down a little. After selecting Occam Networks in August of last year, the stock moved mostly up on what seemed like a steady diet of good news, and it, too, hit our 50% threshold. And, we finally closed Ore Pharma for a hefty loss.
Over the last few weeks, the markets have moved grudgingly upward on even more lousy news about jobless numbers, retail sales, higher foreclosure rates, and a big drop in mortgage applications. The only reason the markets keep climbing the beanstalk is because of zero percent interest rates. Of course, the Fed in its recent Beige Book said the economy is improving. If that is truly the case, why keep rates at zero and create a massive bubble in equities, which is what is now happening. Ever get the feeling we are being lied to?
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 update about companies on the Endangered List unless we feel the news to be highly significant.
CytRx(CYTR)(1/5/10). To conduct Phase 2 clinical trial with Bafetinib in B-cell chronic lymphocytic leukemia. Also, announces plan to initiate a Phase 2 clinical trial with INNO-206 as a treatment for advanced pancreatic cancer. Roth Capital gives the stock a “buy” rating.
Corcept Therapeutics(CORT)(12/20/09). Stock gets a “buy” rating from Ladenburg Thalmann. Announces four anticipated milestones for 2010.
PLX Technology(PLXT)(12/20/09). Sets earnings news for January 25. Launches new home networking storage with new SoC family.
Orchid Cellmark(ORCH)(12/5/09). Plans to consolidate U.S. forensics testing at Dallas facility.
Qualstar(QBAK)(10/20/09). N2Power announces the XL280 ultra-compact AC-DC power supply family.
Solta Medical(SLTM)(10/5/09). Donates Fraxel re:store laser system to Grossman Burn Foundation. Plans to raise $17.2 million in a private placement.
Salary.com(SLRY)(7/5/09). Launches talent management solution for skills gap analysis and assessment.
USA Technologies(USAT)(6/5/09). Increased devices connected to its network to about 63,000 as of 12/31/09.
Ligand Pharma(LGND)(2/20/09). Earns $1 million in milestone payment from Merck.
MakeMusic(MMUS)(1/20/09). Monthly subscription report shows 26% increase over prior year.
Market Leader(LEDR)(12/20/08). RealtyGenerator selected by Avalar Network to help power its national real estate franchise network.
The Orchard(ORCD)(11/20/08). eMusic owner Dimensional Associates raises offer to buy ORCD to $2 per share.
SCM Microsystems(SCMM)(10/5/08). Completes business combination with Bluehill ID AG. Changes name to Identive Group with new stock symbol INVE.
Planar Systems(PLNR)(9/20/08). Sets earnings news for February 2. Launches new products for point-of-sale and retail applications.
ICAgen(ICGN)(8/5/08). Stock price made a big leap around the time the company gave a presentation at the JP Morgan Healthcare confab. Even though it is on the “Endangered List”, we are a little less pessimistic about ICGN.
Applied Energetics(AERG)(7/5/08). Receives $10.4 million contract from the Marine Corps. This is on the “Endangered List”.
Energy Focus(EFOI)(6/5/08). Here’s another one that is on the “Endangered List”, but gives us cause for some optimism as its stock price also made a huge jump. Company acquired Stones River Companies, LLC that was just awarded $12.3 million in lighting retrofit contracts. EFOI also forms a strategic alliance with Woodstone Energy.
GLOBALScape(GSB)(5/20/08). Completes definitive agreements with CoreTrace, a privately-held software company.
Hollywood Media(HOLL)(1/5/08). MovieTickets.com launches paperless mobile movie ticketing program,
Move, Inc.(MOVE)(1/5/08). Realtor.com launches real estate search iPhone application.
Linktone(LTON)(11/5/07). Takes a controlling stake in Chinese game developer Letang for $9.15 million in cash.
Sunesis Pharma(SNSS)(11/5/07). Announces publication of nonclinical Voreloxin data in leukemia; studies demonstrate Voreloxin acts synergistically with cytarabine and induces bone marrow aplasia.
American Technology(ATCO)(10/5/07). Proposes name change to LRAD Corporation (hey! what’s wrong with American?!). Claims it will report record FY 1stQT revenues.
XATA Corp(XATA)(9/20/05). Schnucks chooses XATA for fleet visibility efficiency.
Wave Systems(WAVX)(9/5/07). We have removed this from the “Endangered List” since the stock has roared past our recommended price. Stock got a nudge when it announced $5.7 million in software license and maintenance orders for a global automaker.
A.P. Pharma(APPA)(8/5/07). And yet another one on the “Endangered List” that we’ve begun to feel a little better about. Company received a $2.5 million milestone payment and has regained NASDAQ compliance.
Alliance Fiber Optic Products(AFOP)(7/20/07). Slates earnings call for January 28.
Urologix(ULGX)(2/20/07). Sets earnings call for January 21.
Endologix(ELGX)(1/20/07) Court grants company’s motion to stay patent litigation.
YM BioSciences(YMI)(11/5/06). Announces result of Cytopia shareholder vote. Forms collaboration with University of Toronto to focus on developing novel radionuclide-conjugated antibody molecule. Roth Capital gives the stock a “buy” rating.
8×8(EGHT)(1/20/06). Yes, we know, this one is now four-years old, but still seems like a good company. Sets earnings call for January 27. Enhances VoIP network to deliver HD calling to business phone service subscribers. Prometheus Real Estate Group turns to 8×8 virtual office phone service for 16 Bay Area locations.
Our picks for this Newsletter are another NASDAQ-listed biotech and an AMEX-listed electronics seller.
CHELSEA THERAPEUTICS INT’L, LTD. (NASDAQ: CHTP) – $2.80. Twelve-month hi-low has been $7.51 – $1.21. With offices in Charlotte, NC, and almost 20 employees, this biotech has 33.5 million shares outstanding, $42.06 million in total current assets, $42.24 million in total assets, little long-term debt, and $23.84 million in total liabilities. Institutional ownership is around 29%. Four analysts rate the stock a “strong buy” and one has it as a “hold”. www.chelseatherapeutics.com
And yes, Chelsea Therapeutics Int’l, Ltd. is another of those small biotechs with a healthy-looking balance sheet and a pile of analysts high on the company. Also, helping the company are what seems to be some promising drug candidates.
Founded in 2002 and trading on NASDAQ for over five years, Chelsea focuses on developing pharmaceutical products for various diseases. It offers droxidopa, an orally active synthetic precursor of norepinephrine, which is in two double-blind pivotal Phase III trials for treating symptomatic neurogenic orthostatic hypotension, freezing gait in Parkinson’s disease, and intradialytic hypotension; for treating intradialytic hypotension for which it has completed a double-blind placebo controlled Phase II study; and for treating fibromyalgia that is in a Phase II trial. The company also offers a portfolio of molecules for treating various autoimmune/inflammatory diseases, such as a portfolio of metabolically inert antifolate molecules, including CH-1504 for treating rheumatoid arthritis that is in a Phase II head-to-head clinical trial; and CH-4051, which is in the Phase I study designed to determine the maximum tolerated dose based on results of single-ascending dose evaluations.
In addition, Chelsea develops antifolate program, a second platform consisting of a portfolio of dihydroorotate dehydrogenase (DHODH), inhibiting compounds known as the 1-3D portfolio, a group of orally active compounds the inhibit the enzyme DHODH for treating immune-mediated inflammatory disorders, including transplant rejection, autoimmune diseases, psoriasis, and systemic lupus erythematosus.
In mid-December, Chelsea received FDA approval to change the primary endpoint and increase enrollment in Droxidopa Pivotal Study 301. Also, at that time, the company reported subgroup analysis of 44 Parkinson’s patients in study 302 showed highly statistically significant benefits of Droxidopa therapy.
Chelsea is typical of many small biotechs in that it has little revenue and mega losses. For example, during the quarter ending 9/30/09, it had zero revenue and $7.1 million in losses.
The company appears to have a lot going on and 2010 could be a big year for biotechs.
Our 24-month target for the stock is $4.50 to $5.00.
For more information, contact CHTP’s Kathryn McNeil at 718-788-2856; mcneil@chelseatherapeutics.com
NIVS INTELLIMEDIA TECHNOLOGY GROUP, INC. (AMEX: NIV) – $3.50. Twelve-month hi-low has been $5.50 – $2.03. Based in Huizhou, PRC, with about 1800 employees, this electronics seller has 40.7 million shares outstanding, $60.08 million in total current assets, $132.24 million in total assets, little long term debt, and $63.61 million in total liabilities. Institutional ownership is around 1%. www.nivsgroup.com
Over the years, our batting average on Chinese stocks has been a little below .600, or so, but there may still be some life left in the China Miracle, which NIVS IntelliMedia Technology Group, Inc. has been a part of. The company has a decent balance sheet and has made money for the last four or five quarters.
Founded in 1998 and trading on the AMEX for less than a year, NIVS designs, makes, and sells audio and video consumer products. Their products include audio and video equipment, such as home theater systems; tower, stand-alone, and on-wall speaker systems; powered subwoofers used for stereo and home theater applications; personal shelf-stereo systems; LCD TV sets; DVD players; including portable DVD players, DVD recorders, and combination DVD/audio players; DVB set-top boxes and DVB satellite receivers; hi-fi multi-media speakers; portable digital players, which include MP3/MP4 players; and related peripheral and accessory electronic products comprising remote controls, headphone sets, and lighting solutions.
NIV also offers a line of intelligent audio and video products with integrated speech-controlled home theater systems. televisions, DVD players, set-top boxes, and shelf stereo systems. In addition, it provides speech-controlled professional stage acoustics for use in gymnasiums, plazas, and performance venues. The company sells its products primarily in China, Europe, Southeast Asia, and North America.
For FY2008, ending 12/31/08, revenue was $144.04 million with $13.03 million in net income. During the first nine months of FY2009, ending 9/30/09, revenue was $122.5 million with net income of $13.22 million.
The company seems to be on pace to see FY2009 top FY2008. With its stock price was off its IPO price earlier last year, NIV looks to be a good bet.
Our 24-month target for the stock is $5.25 to $6.00.
For more information, contact NIV’s Jason Wong at +86-138 299 16919; jason@nivsgroup.com
Look for the February 5, 2010 Newsletter to be posted on 2/1 or 2/2.
Thank you,
George