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Hello Readers,
Since the last Newsletter, we closed two positions; one for a gain and the other for a loss.
SINOHUB (9/20/10). Closed position 11/22/10 at $3.23 for a 63% GAIN.
LIGAND PHARMA (2/20/09). Closed position 11/19/10 at $9.07 for a 42% LOSS.
SinoHub, which had done well ever since we picked it, got a nice upward push after releasing a half-decent earnings report. We closed Ligand Pharmaceuticals after it did the 1 for 6 reverse split, which, as we have said over the years, these seldom work for current shareholders.
The markets have looked precarious over the last several weeks thanks to concerns over the crisis on the Korean Peninsula, the fate of the Bush tax cuts, Ireland, Portugal, and Spain. There are a few other concerns that can be thrown into the mix, but why dwell on them? The one thing to watch for is that the much-anticipated Santa Claus rally may not happen. Actually, if there isn’t a deal on the tax cuts, soon, the markets could get real dicey.
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 highly significant.
Peregrine Pharmaceuticals (PPHM)(11/5/10). To present at IBC’s Antibody Engineering & Therapeutics Conference December 6-8. Bavituximab demonstrates broad potential in viral hemorrhagic fever infection models.
Relm Wireless (RWC)(11/5/10). Successfully completes testing of P25 trunking interoperability on competitor’s infrastructure. Receives blanket purchase agreement from U.S. Navy for new P25 trunked products.
Inovio Pharmaceuticals (INO)(10/20/10). HIV DNA vaccine achieves strong T-Cell immune responses in Phase I human trial.
Blue Phoenix (BPHX)(10/20/10). Stock takes a dip as 3rdQT revenues are below expectations; balance sheet still looks good.
CombiMatrix (CBMX)(8/20/10). Receives NASDAQ non-compliance notice over shareholder equity issue.
Threshold Pharmaceuticals (THLD)(8/5/10). Follow-up data from Phase 1/2 clinical trials of TH-302 demonstrate broad activity in all combinations against multiple tumor types.
Rexahn Pharmaceuticals (RNN)(7/20/10). Additional U.S. patent issued for RNN’s CNC treatment portfolio.
Aeterna Zentaris (AEZS)(6/20/10). MLV Capital flashes a “buy” rating on the stock. Presents positive Phase 2 efficacy and safety data for AEZS-108 in advanced endometrial cancer. Presents encouraging preclinical data on two novel orally active anti-cancer compounds.
Clearfield (CLFD)(6/5/10). GTC Broadband and CLFD brings fiber to thousands of Southeastern Missouri homes. Cedar Falls Utilities deploys major FTTp project with company.
Zalicus (ZLCS)(5/5/10). To present at the American Society for Hematology meeting on December 5.
Novabay Pharmaceuticals (NBY)(4/20/10). Holds successful FDA meeting on clinical development of aganocide compound NVC-422 for impetigo.
Cerus Corp (CERS)(3/20/10). Blood safety system for plasma gets Swiss approval.
Cytokinetics (CYTK)(2/5/10). To present at Canaccord conference on December 7.
Biosante Pharmaceuticals (BPAX)(9/20/09). Sells oncolytic virus technology to Cold Genesys.
Anadys Pharmaceuticals (ANDS)(8/20/09). To present at the Piper Jaffray healthcare conference on December 1, the day we post this Newsletter.
Market Leader (LEDR)(12/20/08). Announces product enhancements.
Identive Group (INVE)(10/5/08). Forms strategic alliance with Hirsch & Tracewell to deliver new security solutions to government and industry. Closes Smartag acquisition.
Energy Focus (EFOI)(6/5/08). Awarded $4.1 million in additional retrofit contracts.
Bridgeline Digital (BLIN)(6/5/08). iAPPS product suite powers personalized interactive marketing campaigns for Songbird Hearing.
Microvision (MVIS)(5/20/08). Unveils second-generation laser Pico projector SHOWWX+.
Hollywood Media (HOLL)(1/5/08). MovieTickets.com to release full suite of mobile offerings to keep on-the-go moviegoers connected.
Move, Inc.(MOVE)(1/5/08). Realtor.com launches Windows Phone 7 real estate search application.
Linktone (LTON)(11/5/07). Releases 3rdQT numbers.
LRAD Corp (LRAD)(10/5/07). Sets earnings call for December 1, the day we post this Newsletter.
XATA Corp (XATA)(9/20/07). Verizon Wireless and XATA Turnpike solution offers customers fleet management tools to support CSA 2010 compliance.
Endologix (ELGX)(1/20/07). To present at the Canaccord confab on December 7.
YM BioSciences (YMI)(11/5/06). Expands Phase I/II trial for JAK inhibitor CYT387.
Our picks for this Newsletter are a wireless solution provider focused on security and another small biotech, both NASDAQ-listed.
The only penny stock site recommended in Barron’s and by Forbes, picks stocks trading at under $5 that are on the NYSE, NASDAQ, and AMEX. Since 1996, over 70% of our closed positions are for gains of 50% or greater.
I.D. SYSTEMS, INC. (NASDAQ: IDSY) – $2.60. Twelve-month hi-low has been $3.89 – $1.77. Based in Hackensack, NJ, with about 110 employees, this wireless solutions provider has 11.3 million shares outstanding, $61.9 million in total current assets, $70.57 million in total assets, little debt, and $14.61 million in total liabilities. Institutional ownership is around 44%. One analyst has the stock as a “strong buy” and another as a “hold”. www.id-systems.com
I.D. Systems looks to be another small tech that may be making a turnaround and has recently snagged some nice contracts. The company also has a pretty attractive balance sheet.
Founded in 1993, and public since 1999, I.D. Systems bills itself as a global provider of wireless solutions for securing, tracking, and managing high-value enterprise assets, including industrial vehicles, such as forklifts and airport ground support equipment, transportation assets including trailers, containers, and rental cars. Its products include On-Asset Hardware, which provides an autonomous means of asset control and monitoring; Wireless Asset Managers that link mobile assets being monitored with customers’ computer network or to a remotely-hosted server; Server Software, which manages data communications between the system’s database and either the Wireless Asset Managers or On-Asset Hardware; and Client Software that restricts access to and limits corruption of system information, as well as minimizing network bandwidth usage. The company also offers Battery ChaMP, which provides automatic data uploads, real-time system visibility, and data collection for electric vehicle batteries and chargers; and Line Asset Communicator, a wireless messaging device that triggers automatic real-time task requests via radio frequency (RDIF).
Some of I.D. Systems customers include 3M, Alcoa, ADM, Canadian Tire, Chrysler, FMC, Ford, John Deere, Kellogg’s, Nissan, Northrup Grumman, Rite Aid, Target, Toyota, Walgreen’s, U.S. DOD, U.S. Homeland Security, and the U.S. Postal Service, among others.
At the end of October, the company won another DOD project for wireless industrial vehicle management technology. Also, at the time, Garner Transportation selected the company’s VeriWise Track and Trace to manage its fleet of dry vans.
For FY2009, ending 12/31/09, revenue was $10.31 million with $13.19 million in losses. For the first nine months of the current FY, ending 9/30/10. revenue was $18.62 million with losses of $9.95 million.
The company appears to be doing well on the revenue side, once again. We would like to see the losses abate, pretty soon.
Our 24-month target for the stock is $4.25 to $4.75.
For more information, contact IDSY’s Ned Mavrommatis at 201-996-9000; ned@id-systems.com
SUPERGEN, INC. (NASDAQ: SUPG) – $2.65. Twelve-month hi-low has been $3.80 – $1.71. Based in Dublin, CA, with about 80 employees, this drug maker has 60.3 million shares outstanding, $109.83 million in total current assets, $121.57 million in total assets, little debt, and $7.69 million in total liabilities. Institutional ownership is around 44%. One analyst rates the stock a “strong buy”. www.supergen.com
Over half a decade or so ago, we picked SuperGen, Inc. and made some very nice gains on it back then. Now, the company seems to have a lot more money and is showing some nifty revenues and periodic profits.
Founded in 1991, and public since 1996, SuperGen’s primary focus is discovering and developing therapies to treat cancer patients. The company acquires products developed by other companies and applies additional developmental effort to expand sales or advance these products clinically towards approval for marketing. It’s main vehicle for doing this is CLIMB, SuperGen’s proprietary discovery engine that promises to change the current paradigm of drug discovery by reducing the time and cost required to move from target validation to lead identification and IND-enabling studies. Using CLIMB, the company intends to discover and advance into clinical trials at least one product about every twelve months; while focusing on drug targets that are difficult to screen by traditional methods.
SuperGen’s products in R&D include Amuvatinib, a multi-targeted Tyrosine Kinase inhibitor that is specific for mutant forms of c-kit, PDGFRa, and FLT3; SGI-1776 Pim Kinase inhibitor, a novel, orally-administered, small molecule anti-cancer compound that blocks the pro-survival activity of Pim kinases, allowing these potential malignant cells to self-abort; and SGI-110 DNMT1 inhibitor that is in pre-clinical development stage. Its discovery programs comprise JAK2 inhibitor, Axl inhibitor, and ETK/BMX inhibitors; and products that are sublicensed or sold include Dacogen, which has been a huge moneymaker for the company.
For FY2009, ending 12/31/09, revenue was $41.25 million with $4.73 million in net income. During the first nine months of the current FY, ending 9/30/10, revenue has been $37.68 million with $9.52 million in net income.
Look at SuperGen’s balance sheet. Then, look at the revenues and profits. Then, ask yourself, am I missing something here? Shouldn’t the stock price be a lot higher? Yes, much of it comes from just one drug, but hey!
Our 24-month target for the stock is $5.00 to $5.25.
For more information, contact SUPG’s Timothy Enns at 925-560-0100; tenns@SuperGen.com
Look for the December 20, 2010 Newsletter to be posted on 12/16 or 12/17.
Thank you,
George