CORCEPT THERAPEUTICS, INC. & PLX TECHNOLOGY, INC.

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Hello Readers,

Since the last Newsletter, we closed six more positions; four for gains and two for losses.

DYNAVAX (11/5/09). Closed position 12/10/09 at $1.94 for a 55% GAIN.

TIGERLOGIC (11/5/09). Closed position 12/9/09 at $4.50 for a 50% GAIN.

CONTINUCARE (11/20/07). Closed position 12/8/09 at $3.96 for a 55% GAIN.

DRUGSTORE.COM (9/5/09). Closed position 12/8/09 at $3.55 for a 50% GAIN.

THERMOGENESIS (4/5/06). Closed position 12/8/09 at 59 cents for a 85% LOSS.

RAE SYSTEMS (10/5/05). Closed position 12/8/09 at 73 cents for a 78% LOSS.

Dynavax surged on news that its German factory obtained approval to produce the company’s hepatitis vaccine, and we’re happy to have the relatively quick gain. And, likewise, it’s again satisfying to have a pick like Tiger Logic reach our 50%-plus threshold within a few months for no discernible reason. It took long enough, but Conitinucare finally posted some decent numbers last month that gave the stock a nice shot in the arm. Shortly after we picked Drugstore.com, in September, the company showed some good sales growth, and the stock has climbed steadily since. And, at long last, we closed both RAE Systems and Thermogenesis for some bad losses.

Since it is the Christmas/holiday time, we won’t go into our usual rant about how things really are not as great as all of the talking heads would have you believe, and how government and Fed policy are sending us down the road to financial ruin. As always, we’ll just urge you to keep vigilant and don’t get too comfortable with this market.

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 feel the news to be significant.

Real Goods Solar (RSOL)(12/5/09). Gets multi-site contract to install systems across four California housing communities.

OXiGENE (OXGN)(11/20/07). Reports promising preclinical data using OXi4503 in acute myelogenous leukemia models at ASH Conference.

Uranerz (URZ)(11/20/09). Receives draft EIS for Nichols Ranch ISR uranium project.

Helicos BioSciences (HLCS)(10/20/09). Present an overview of single molecule sequencing technology in clinical diagnostics. Company and Mass General publish epigenomic study in nature methods.

Avanir Pharmaceuticals (AVNR)(10/5/09). Presents Zenvia Phase III results in amyotrophic lateral sclerosis patient cohort at the International Symposium on ALS/MND.

BioSante Pharma (BPAX)(9/20/09). Monetizes a portion of U.S. Electrin royalties.

BioClinica (BIOC)(8/5/09). Honored as Technology Company of the Year at Eastern Technology Council’s Enterprise Awards.

USA Technologies (USAT)(6/5/09). Multiple stories about fight with dissident group. Ranked #6 in US, #34 worldwide for POS terminal shipments for 2008.

MakeMusic (MMUS)(1/20/09). November subscription report shows 25% increase over the prior year.

Akeena Solar (AKNS)(10/20/08). We wondered when the bleeding would stop and the stock jumped from under a dollar to present levels on news that its Andalay AC Solar Panels are now available at Lowe’s home stores.

Planar Systems (PLNR)(9/20/08). Launches industry leading lampless LED-based home projection system.

U.S. Geothermal (HTM)(8/5/08). Signs Neal Hot Springs PPA with Idaho Power. New water rights acquired at San Emidio project.

Microvision (MVIS)(5/20/08). Oppenheimer initiates coverage on company. PicoP display engine at heart of realistic game demo at Intel Extreme Masters Tournament. Closes secondary stock offering.

GlobalScape (GSB)(5/20/08). Announces investment term sheet with CoreTrace.

Ziopharm Oncology (ZIOP)(5/5/08). Stock feels pressure as company plans to raise $45.2 million in public offering.

Biolase Technology (BLTI)(4/5/08). Gets FDA 510(k) clearance for its Waterlase MD Laser for removing calculus in patients with periodontal disease.

ActivIdentity (ACTI)(3/5/08). To acquire CoreStreet, a distributor of identity credential validation solutions, for $20 million. Acquisition should add about 10% to revenue base.

Sunesis (SNSS)(11/5/07). We have removed this from the “Endangered List”. A few weeks back, the stock was at 37 cents, but then screamed to over $2.00 on news about its leukemia drug trial results and a possible partnership.

American Technology (ATCO)(10/5/07). Reports record annual revenues and major paring of losses; balance sheet still looks okay.

XATA (XATA)(9/20/07). Raises $30 million and buys Canadian company Turnpike Global, which makes monitoring technology to track a truck’s location and its engine. FY numbers show good revenue growth and paring of losses; balance sheet could be a little better. Brookshire Grocery chooses XATA for fleet optimization.

Pharmacyclics (PCYC)(6/20/07). Stock got a nice boost from the doldrums on news about positive results on a few of its drug candidates.

Xenonics (XNN)(6/5/07). To release FY2009 results on December 22.

YM Biosciences (YMI)(11/5/06). Offer for Cytopia okayed to proceed to shareholder vote by Aussie court. YMI and Canadian Biotech Research Institute produce new breast cancer drug candidates.

Our picks for this Newsletter are another biotech and another semiconductor, both NASDAQ-listed.

CORCEPT THERAPEUTICS, INC. (NASDAQ: CORT) – $2.50. Twelve-month hi-low has been $3.10 – 73 cents. Based in Menlo Park, CA, with about 15 employees, this biotech has 49.8 million shares outstanding, $11.4 million in total current assets, $11.6 million in total assets, little debt, and $2.36 million in liabilities. Institutional ownership is around 3%. Two analysts rate the stock a “strong buy” and one has it on “hold”. www.corcept.com

Periodically, we stumble across a company like Corcept Therapeutics, Inc. and say “huh?”. Recently, they completed a $18 million offering, which leads us to think that some people believe that their drug candidates may be worth the money. BTW, that $18 million is not yet reflected in the above asset numbers.

Founded in 1998, and trading on NASDAQ for just over a year, Corcept is developing drugs for treating severe metabolic and psychiatric disorders that are associated with irregular levels of the steroid hormone called cortisol. Its lead product candidate, CORLUX, modulates the effects of cortisol – better known as the “stress hormone” – by selectively blocking the binding of cortisol to one of its two known receptors, the GR-II receptor, also known as the Type II or GR (glucocorticoid receptor) receptor. CORLUX is a GR-II antagonist and is in Phase III clinical trials for treating Cushing’s Syndrome and psychotic depression. The company is also developing next-generation GR-II antagonists for other major metabolic and psychiatric disorders. Corcept has a exclusive patent license from Stanford University for the use of GR-II antagonists, as well as agreements with ICON Clinical Research, LP and MedAvante, Inc.

The Phase III clinical program for Cushing’s Syndrome is soon due to complete enrollment and data is expected by mid-2010. The company’s Phase III clinical program for psychotic depression is now actively enrolling patients. Corcept must feel somewhat confident about the outcomes, since they are now beginning preparations for the commercialization of CORLUX in the U.S.

Corcept is like many small biotechs in that it has nearly zero revenues and mountains of losses. During the first nine months of the current FY, ending 9/30/09, revenue was $29,000 with about $15 million in losses.

As we said above, some people put up a lot of money because they have faith in Corcept’s drug candidates.

Our 24-month target for the stock is $4.25 to $4.75.

For more information, contact CORT’s Caroline Loewy at 650-688-8783.

PLX TECHNOLOGY, INC. (NASDAQ: PLXT) – $3.23. Twelve-month hi-low has been $4.40 – $1.45. Based in Sunnyvale, CA, with about 155 employees, this semiconductor has 37 million shares outstanding, $53.99 million in total current assets, $81.95 million in total assets, little debt, and $12.63 million in total liabilities. Institutional ownership is around 42%. One analyst rates the stock a “strong buy”. www.plxtech.com

There is nothing overly sexy about PLX Technology, Inc. The company saw its top and bottom lines battered in 2008 and during the first half of 2009. However, things appear to be looking better for the company, and it does have a pretty decent balance sheet.

Founded in 1986, and trading on NASDAQ for nearly ten years, PLX Technology develops and sells integrated circuits (ICs). The company’s products include PCI Express switches for fan-out in servers and storage systems, dual graphics in gaming and workstation systems, control planes in networking and communications systems, and backplanes in embedded and industrial equipment. Its products also include PCI Express bridges that upgrades conventional PCI products for use in new PCI Express systems, as well as for use in servers, storage host bus adapters, graphics, TV tuners, and security systems; and direct attached storage devices, which are system-on-a-chip (SOC) products that allow to connect external storage to a PC through a USB, FireWire, or eSATA connection.

PLX Technology also offers network attached storage SOC devices to provide storage that attaches to LAN; and USB interface ships for computer peripherals to connect a PC through an external cabled connection, as well as for use in devices, such as multi-function printers, DVD camcorders, portable media players, portable navigation systems, digital cameras, PDAs, and hard disks. Further, its products include PCI bridges that translate and extend the PCI bus, as well as offer a bridge between the PCI and various other serial and parallel general purpose interfaces; and software development kits, operating system ports, and firmware solutions. The company’s products are used by companies in the server, storage, communications, industrial, and consumer markets, and by electronic equipment manufacturers who want to incorporate PLX products into their systems.

In November, the company announced that its PCI Express Switch enables “blinding speed” on the new ATI Radeon flagship graphics card. PLX also said they had completed the first design on advanced 4nm process technology.

For FY2008, ending 12/31/08, revenue was $81 million with $56.53 million in losses. During the first nine months of the current FY, ending 9/30/09, revenue was $56.19 million with $21.41 million in losses. However, in the 3rdQT PLX saw better revenues and deep loss reductions. The company also issued guidance in line with analysts’ estimates for the 4thQT.

PLX Technology looks like it may be on the comeback. The next few quarters should paint a clearer picture.

Our 24-month target for the stock is $5.00 to $5.25.

For more information contact PLXT’s Jerry Steach at 415-222-9996; jsteach@plxtech.com

Looks for the January 5, 2010 Newsletter to be posted on 1/4 or 1/5.

MERRY CHRISTMAS, HAPPY NEW YEAR, HAPPY HOLDIAYS!
George