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Hello Readers,
Since the last Newsletter, we closed another position, for a nice gain.
BOOTS & COOTS (9/20/07). Closed position 4/8/08 at $1.92 for a 60% GAIN.
Ever since we picked it, Boots & Coots stock has made steady upside progress and then probably got a nice push due to a upbeat research report from RedChip. Yes, WEL could possibly go higher, but, for now, we’ll take the small victories and the 60% gain.
Looks as if the end-of-March early-April gave us the classic rally in a bear market, a/k/a a head-fake. The positive was that at least there was a rally, proof of alien life forms. During the last five to seven months, we have been very negative on the markets, as most of you know, however, we cannot help but feel that we are nearing the end of the carnage. Yes, there will be more pain because earnings reports will be less than rosy, and let’s not forget about the credit crisis, which will continue for some time, but, as we said in the last Newsletter, the Fed has our backs. Overall, our Current Portfolio is still stagnant, but there are now a few signs of breathing. And yes, the operative phrase is still “bottom fish”.
Here are the headlines since the last Newsletter about companies in the Current Portfolio. Dates in parentheses are when we first recommended them.
Biolase (BLTI) (4/5/08). Announces global launch of Endolase RFT root canal therapy system for Waterlase MD Laser System.
Barrier Therapeutics (BTRX) (3/20/08). Announces positive results in reducing itch symptoms with novel oral antihistamine agent Hivenyl.
ActivIdentity (ACTI) (3/5/08). Names new CEO as company says 2ndQT sales were lower than expected. Brokerage Soleil downgrades the stock to a “hold”.
Entrust (ENTU) (2/20/08). Several releases about new products. Slates earnings call for April 22.
IncrediMail (MAIL) (2/20/08). Reports record annual revenues, up 72% year-over-year; balance sheet still looks okay. Will announce new strategy on April 16, the day we post this Newsletter.
Amicas (AMCS) (1/20/08). Chosen by RIA and INVISION to develop better customer service in radiology.
Move, Inc (MOVE) (1/5/08). Sets earnings call for May 8. Nierenberg Funds raise stake in Move. Achieves real-time integration with Oracle.
Hollis-Eden Pharmaceuticals (HEPH) (12/20/07). Presents positive data with APOPTONE in preclinical bone model of late-stage prostate cancer.
Santarus (SNTS) (11/20/07). Provides termination notice to Otsuka America Pharmaceutical for ZEGERID co-promotion agreement.
Linktone (LTON) (11/5/07). Announces successful completion of MNC strategic investment.
Sunesis Pharmaceuticals (SNSS) (11/5/07). Presents nonclinical data on SNS-595 at annual cancer confab.
Retractable Technologies (RVP) (10/20/07). Reports good FY2007 revenue numbers but losses need paring; balance sheet still looks good. Also, reports on new patent and litigation matters.
Orsus Xelent (ORS) (10/20/07). FY2007 numbers appear to be very good; balance sheet still seems okay, but saw cash burn in 4thQT. Says it is well-positioned to launch its own new line of multi-feature 3G phones.
WaveSystems (WAVX) (9/5/07). Partners with SafeNet to expand enterprise security offerings for Data-at-Rest.
Kodiak Oil & Gas (KOG) (9/5/07). Receives Bakken play environmental assessment approval and contracts drilling rig. Announces management changes.
Iomai (IOMI) (8/20/07). Receives HHS approval to begin Phase 2 trial of H5N1 influenza adjuvant patch. Wins Department of Defense grant to develop a stable, patch-based anthrax vaccine. Partners with Merck to study needle-free vaccines.
SIGA Technologies (SIGA) (8/20/07). Advances ST-246 smallpox antiviral development in Europe. Initiates manufacture of ST-246 NDA registration batches.
Radcom (RDCM) (7/20/07). Raises $2.5 million credit facility from Plenus Venture Lending. Will release 1stQT results on April 28. Asks shareholders for meeting to approve 1-to-4 reverse split – we’ve said it many times: these very seldom benefit current shareholders; however, the nature of the markets and some misguided regulations are causing many companies to needlessly panic.
Alliance Fiber Optic Products (AFOP) (7/20/07). Slates earnings call for April 24.
Pharmacyclics (PCYC) (6/20/07). Reports multiple presentations at cancer research meeting on its HDAC and selective HDAC inhibitors. Sets earnings call for April 24. Announces preclinical results supporting development of its novel Btk inhibitor in immune mediated diseases.
Xenonics (XNN) (6/5/07). Sets earnings call for May 14 and expects profitable 2ndQT and first half.
Oncolytics (ONCY) (6/5/07). Collaborators present reovirus research for pediatric sarcomas at AACR annual meeting. Completes dose escalation in combination REOLYSIN Paclitaxel and Carboplatin trial. Reports positive interim results of UK combination REOLYSIN and Carboplatin/Paclitaxel trial.
Encorium Group (ENCO) (5/20/07). Gets additional $2.2 million of new business contracts with multiple European and U.S. biopharm companies.
Hana Biosciences (HNAB) (5/5/07). Starts Phase 1 clinical trial of topical Menadione for treatment and/or prevention of EGFR inhibitor-associated skin rash.
ECTel (ECTX) (5/5/07). To release 1stQT results on May 5.
Immunicon (IMMC) (3/20/07). Several releases about products. Says its future is in doubt as company considers strategic alternatives. This is on “Endangered List”.
TTI Team Telecom (TTIL) (3/5/07). To deliver service assurance solutions to France Telecom Group’s NExT program for converged networks and IT.
Eon Communications (EONC) (2/5/07). Announces additional reorganization steps.
UQM Technologies (UQM) (2/5/07). UQM’s electric motor turns the propeller as Boeing successfully completes the world’s first flight of a manned fuel cell powered airplane.
Endologix (ELGX) (1/20/07). Sets earnings call for April 24. First commercial procedures performed in Japan with company’s Powerlink system.
Cardiotech (CTE) (12/20/06). Announces second site for CardioPass clinical trial.
Lantronix (LTRX) (12/5/06). Announces powerful, standards-based evolution OS software development kit for MatchPort AR, including sourcery G++ from CodeSourcery.
YM Biosciences (YMI) (11/5/06). Announces presentations for two of its anti-cancer drugs at AACR annual meeting.
Hydrogenics (HYGS) (9/20/06). Enters into agreement with Greenlight Innovations to license test equipment intellectual property.
TVI Corporation (TVIN) (9/5/06). Receives $5.1 million C2A1 filter canister follow-on order from U.S. Army. Announces sale of Mortuary Affairs Systems to the Army. This is on the “Endangered List”.
Advanced Life Sciences (ADLS) (7/20/06). Plans to submit NDA for Cethromycin.
02Diesel (OTD) (5/20/06). To acquire German biofuels distribution company. Receives non-compliance letter from AMEX. Releases 1stQT results. This is on “Endangered List”.
Tri-S Security (TRIS) (5/5/06). Wall Street Global Research gives the stock a “speculative buy”. Gets $56 million contract for federal facilities in Washington DC, MD, and Northern VA.
The Inventure Group (SNAK) (3/5/06). To announce 1stQT results on April 23.
Lipid Sciences (LIPD) (2/20/06). Complies with NASDAQ marketplace rule. To present HDL Mimetic Peptide data at annual confab on April 17.
MIND CTI (MNDO) (2/5/06). Updates on company held auction rate securities.
8×8 (EGHT) (1/20/06). Kaufman gives the stock a “buy”. Packet8 Virtual Office now available on Salesforce.com’s AppExchange.
RAE Systems (RAE) (10/5/05). Demonstrates new portable and wireless gas detection tools at Fire Department Instructors Conference. Receives ATEX certification for next-generation volatile organic compound detectors.
EntreMed (ENMD) (9/5/05). Several releases about ENMD-2076. Receives NASDAQ deficiency notice. Commences continuous dosing clinical trial for MKC-1.
Zi Corp (ZICA) (8/5/05). Obtains access to restricted cash in China. On “Endangered List”.
North American Scientific (NASI) (8/5/05). Sets earnings call for May 22. Receives NASDAQ non-compliance notice. On “Endangered List”.
B.O.S. (BOSC) (1/5/05). Receives orders from European customers to supply RFID tags, exceeds $600,000.
Aviza (AVZA) (10/5/04). To cut 15% of staff. Gets NASDAQ bid price warning. On “Endangered List”.
Network Engines (NENG) (6/5/04). Sets earnings call for May 1.
Our picks for this Newsletter both trade on NASDAQ, one is a biotech and the other is a electronics maker.
MICROMET, INC. (NASDAQ: MITI) – $2.05. Twelve-month hi-low has been $3.74 – $1.22. Based in Bethesda, MD, with about 90 employees, this biotech has 40.8 million shares outstanding, $34.33 million in total current assets, $56.25 million in total assets, and $31.27 million in total liabilities, of which $2.25 million is long-term debt. Institutional ownership is around 25%. One analyst rates the stock a “strong buy”, one a “moderate buy”, and one as a “hold”. www.micromet.de
Yep, another biotech with a decent balance sheet, and, Micromet, Inc. seems to have a pretty active pipeline of product candidates.
Founded in 1998, and public for under five years, Micromet, formerly called CancerVax, develops antibody-based products for cancer, inflammatory, and autoimmune diseases. The technology used is called BiTE, short for bispecific T-cell engagers, which are antibodies designed to direct the body’s cytotoxic, or cell-destroying, T cells against tumor cancers and represent what the company claims is a new therapeutic approach to cancer therapy. Its products under clinical trials include MT103, a Phase 1 product candidate for treating non-Hodgkin’s lymphoma; and Adecatumumab, a recombinant human monoclonal antibody that is under clinical Phase IIa status for metastatic breast cancer and other adenocarcinoma indications, and is being evaluated in Phase 1b trials for treating metastatic breast cancer in combination with docetaxel.
Micromet’s preclinical development products include MT203 and MT204 human antibodies to treat various acute and chronic inflammatory diseases, including rheumatoid arthritis, asthma, psoriasis, and multiple sclerosis; EphA2, a cell surface membrane-associated receptor tyrosine kinase for treating cancer; CEA, which is indicated for treating tumors of epithelial origin, such as colorectal carcinoma, lung adenocarcinoma, mucinous ovarian carcinoma, and endometrial adenocarcinoma, MORAb28, a human IgM monoclonal antibody binding to an antigen present on human melanomas and tumors of neuroectodermal origin; and MT110, a molecule that combines binding specificities for EpCAM and for CD3 on T cells; and D93, a humanized, anti-metastatic, anti-angiogenic monoclonal antibody for treating solid tumors.
The company has strategic collaborations with MedImmune for MT103; Nycomed for developing anti-GM-CSF antibodies; and Merck for adecatumumab.
Unlike many small biotechs, Micromet has been garnering some decent revenues, mainly from milestone payments, which helps slow the bleeding from the balance sheet. For FY2007, ending 12/31/07, revenue was $18.38 million with $20.13 million in losses.
We like the number of analysts following the stock; two raised their signals in March. And, we like the names of the companies with whom Micromet has strategic partnerships.
Our 24-month target for the stock is $3.50 to $4.00.
For more information, contact MITI at 240-235-0250; info@micromet-inc.com
KOPIN CORPORATION (NASDAQ: KOPN) – $2.57. Twelve-month hi-low has been $4.50 – $1.90. Located in Taunton, MA, with about 290 employees, this electronics maker has 71 million shares outstanding, $127 million in total current assets, $161 million in total assets, little debt, and $23.56 million in total liabilities. Institutional ownership is about 47%. One analyst has the stock as a “moderate buy”. www.kopin.com
Sometimes we stumble upon one that has a great-looking balance sheet and pretty steady revenue growth and ask, “huh, why isn’t this stock higher”. Such is the case with Kopin Corporation.
Founded in 1984, and public for over seven years, Kopin makes and markets Gallium Arsenide-based heterojunction bipolar transistor wafers – better known as HBT transistor wafers – and other commercial semiconductor products. Protected by more than 200 global patents and patents pending, the company’s two product lines are: the HBT wafers and the CyberDisplay family of ultra-small liquid crystal displays (LCDs). Kopin claims to be the largest U.S. manufacturer of microdisplays, with more than 20 million shipped worldwide.
Kobin offers HBT wafers to telecommunication providers for use in cellular phones, wireless fidelity, VoIP, and high-speed Internet data transmission systems. It says it is the world’s dominant merchant supplier of HBT wafers for wireless power amplifier (PA) circuits, which have been integrated into more than one billion wireless handsets. The CyberDisplay products are used in various consumer electronics and defense systems, including camcorders, digital cameras, personal video eyewear, and thermal weapon sights.
Some of the company’s customers are Samsung, Skyworld, Konica Minolta, Kodak, Raytheon, L3 Communications, Aquila, and the U.S. Army.
Kopin expects 2008 revenues in the range of $105 million to $115 million. For FY2007, ending 12/29/07, revenue was $98.14 million with $6.55 million in losses (the 4thQT showed net income of $285,403) compared to 2006 revenue of $71.1 million with $2.15 million in losses.
The company spends about 10% of its revenue on R&D, which seems to be paying off.
Our 24-month target for the stock is $4.50 to $5.00.
For more information, contact KOPN’s Richard Sneider at 508-824-6696; Richard_Sneider@kopin.com
Look for the May 5, 2008 Newsletter to be posted on May 2 or May 5.
Have a happy Earth Day,
George