***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 have closed three more positions, one for a nice gain, one for a very modest gain, and another for a loss.
Vical, Inc. (4/5/11). Closed position 5/13/11 at $4.95 for a 68% GAIN.
Banner Corp. (8/5/10). Closed position 5/13/11 at $2.81 for a 20% GAIN.
NIVS IntelliMedia (1/20/10). Closed position 5/13/11 at $1.00 for a 71% LOSS.
Ever since we picked Vical a few months ago, the stock has seen a steady rise on no real apparent block-buster news, which works for us. We are closing Banner Corp right now because the company is planning a 1 for 7 reverse stock split in June, which will put it out of our price range, but we will happily take the 20% gain. It appears that trading has halted in NIVS IntelliMedia and we have no clue as to when it will reopen, but if it does, we suspect it will be around a dollar; trading halts for this length of time are usually not good signs.
The markets have been stuck in neutral. We have seen three or four day stretches of nice gains, only to be crushed by two-day sell-offs. What gives? Despite all of the gibberish you hear from the gurus, it is simply that the markets are trying to figure out a lot of things, but the crux of the matter is are we really in a recovery, or are things about to go south, again?
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.
Energy Recovery (ERII)(5/5/11). Selected by Consolidated Water Co. for desalination plant expansion in the Bahamas. 1stQT numbers not great, but not bad; balance sheet still looks strong.
Biostar Pharmaceuticals (BSPM)(4/20/11). To release earnings on May 16, the day we post this Newsletter.
GSE Systems (GVP)(4/20/11). Comes out with pretty good 1stQT numbers; balance sheet still looks good.
Thermogenesis (KOOL)4/5/11). Recent numbers show improved revenue growth; balance sheet still looks good. Company cites major progress in China and India.
Jamba, Inc (JMBA)(3/20/11). Announces significant progress against CPG initiative. To present at the annual B. Riley & Co. Investor conference on May 24. To announce quarterly results on May 23. Expands presence into 24th state with CT store opening.
Pluristem Therapeutics (PSTI)(3/2011). To present at several biotech conferences between May 18 and May 25.
Oculus Innovative Sciences (OCLS)(3/5/11). Beats 4th QT guidance and provides commercialization update.
AdventRx Pharmaceuticals (ANX)(2/20/11). Recent balance sheet still looks healthy.
Biodel (BIOD)(2/20/11). To raise $30 million through registered direct offering. Balance sheet still looks good. Independent investigator initiates Phase 1 study of company’s ultra-rapid-acting insulin formulations in patients using insulin pumps.
Real Goods Solar (RSOL)(1/20/11). Reports good QT results with 7th consecutive QT of profits; balance sheet still looks good.
Great Basin Gold (GBG)(1/5/11). Provides operational update and expects wider 1st QT loss. This stock, like many mining stocks, has been going down or standing still as the price of gold keeps rising. Why the anomaly that few of us expected? In the past, mining stocks surged as gold surged, however, in recent months, ETFs and hedge funds have mostly ignored the miners and have just been buying the metal. The silver mining stocks have experienced the same thing. Maybe once the margin requirements tighten even more, miners could do better.
Sprint Nextel (S)(1/5/11). The usual several dozen news articles with one of the most noteworthy being that the company is ramping up its fight over the AT&T merger.
Trident Microsystems (TRID)(12/20/10). Recent numbers a disappointment; balance sheet still holding its own.
SuperGen (SUPG)(12/5/10). To present at the Noble Financial Capital Markets equity conference on May 17, the day after we post this Newsletter.
Pixelworks (PXLW)(11/20/10). Announces expiration and results of put option for 1.75% convertibles. Closes secondary offering priced at $2.24 a share, which put pressure on stock price.
Relm Wireless (RWC)(11/5/10). Will present at the Noble annual equity conference on May 17. Recent numbers not that great; balance sheet still looks okay.
Inovio Pharmaceuticals (INO)(10/20/10). Intellectual property recognized by MDB Capital Award. Balance sheet still looks pretty good. Reports long-term immune responses from therapeutic cervical dysplasia and cancer DNA vaccine.
Blue Phoenix (BPHX)(10/20/10). Will announce 1st QT results on May 24. Amends debt agreements.
ProPhase Labs (PRPH)(10/5/10). Releases pretty upbeat quarterly report; balance sheet still looks good.
Advanced Analogic Technologies (AATI)(9/20/10). Recent numbers not that great; balance sheet still looks strong.
CombiMatrix (CBMX)(8/20/10). Latest balance sheet still looks okay.
Rexahn Pharmaceuticals (RNN)(7/20/10). Reports enrollment progress in key clinical trial.
Alpha Pro Tech (APT)(7/20/10). 1st QT numbers not that great; balance sheet still seems to be okay.
Napco Security Technologies (NSSC)(7/5/10). Will present at the Noble equity confab on May 17. To release earnings on May 16, the day we post this Newsletter.
American CareSource (ANCI)(4/20/10). To present at the Noble equity confab on May 16, the day we post this Newsletter. Quarterly results could have been better; balance sheet still looks good.
NovaBay Pharmaceuticals (NBY)(4/20/10). Spotlights three new aganocide compounds with confirmed activity against ophthalmic pathogens.
China Direct Industries (CDII)(4/5/10). Sets earnings call for May 16, the day we post this Newsletter.
Novavax (NVAX)(4/5/10). To present at the Noble equity conference on May 16, the day we post this Newsletter. Balance sheet still looks strong.
Cytokinetics (CYTK)(2/5/10). Sets shareholders meeting for May 18.
CytRx (CYTR)(1/5/10). Balance sheet still looks pretty healthy.
Qualstar (QBAK)(10/20/09). Recent numbers okay; balance sheet still looks good.
BioSante Pharmaceuticals (BPAX)(9/20/09). Gives an upbeat quarterly report; balance sheet still looks good.
Anadys Pharmaceuticals (ANDS)(8/20/09). Balance sheet still looks healthy.
Performance Technologies (PTIX)(7/20/09). Earnings report shows good revenues but losses keep biting; balance sheet still looks good.
USA Technologies (USAT)(6/5/09). Posts decent-looking revenue numbers; balance sheet still looks good.
Bridgeline Digital (BLIN)(6/5/08). Says iAPPS continues its explosive growth in license sales. Sets earnings call for May 16, the day we post this Newsletter.
MicroVision (MVIS)(5/20/08). Revenue numbers up over a year ago; balance sheet still looks good. Secures $40 million committed equity financing facility.
GlobalScape (GSB)(5/20/08). Releases pretty upbeat QT report; balance sheet still looks pretty good.
Move, Inc (MOVE)(1/5/08). Releases decent-looking QT numbers; balance sheet still looks strong.
LRAD Corp (LRAD)(10/5/07). Posts pretty good quarterly numbers; balance sheet still looks good.
XATA, INC (XATA)(9/20/07). Named to Motorola Solutions Partner Pinnacle Club. Latest numbers only so-so; balance sheet still looks good.
YM Biosciences (YMI)(11/5/06). Balance sheet still looks pretty strong.
Our picks for this Newsletter are two more biotechs, one trades on the AMEX and the other on the NASDAQ.
NEOSTEM, INC. (AMEX: NBS) – $1.67. Twelve-month hi-low has been $3.50 – $1.10. Based in New York City, with about 600 employees worldwide, this biotech has $46.88 million in total current assets, $143 million in total assets, and $50 million in total liabilities, of which $10.9 million is long-term debt. Institutional ownership is around 4%. Four analysts rate the stock a “strong buy”, one a “moderate buy” and another as a “hold”. www.neostem.com
Usually, we don’t like any debt on the balance sheet, but we do like all of the analysts lining up behind Neostem, Inc. and the fact that the company began to garner significant revenues last year.
Founded in 1980, and public for nearly fifteen years, Neostem is developing stem cell-based therapies for anti-aging initiatives and is building a network of adult stem cell collection centers in the U.S. and China. It provides adult stem cell collection, processing, and storage services enabling healthy people to donate and store their stem cells for personal therapeutic use. The company is also developing a pipeline of regenerative medicine therapies focused on orthopedic conditions; developing wellness, cosmetic, and anti-aging applications; and participating in the medical tourism market for regenerative medical treatments. In addition, it offers anti-infective drugs that include active pharmaceutical ingredients (API) under Acetylspiramycin and Oxacillin Sodium names; and injectable finished products under Mezlocillin Sodium, Amoxicillin/Sulbactum Sodium, and Cefoperazone/Sulbactum Sodium names.
Neostem sells its prescriptive drugs and APIs through hospitals in China. The company has a collaborative agreement with ImmuneRegen BioSciences that focuses on developing an advanced adult human stem cell project; and with Enhance Biomedical Holding for developing an adult stem cell collection and treatment network. Earlier this year, Neostem acquired, via merger, Progenitor Cell Therapy, whose core strategy is to provide an international network of cell therapy manufacturing and storage facilities.
For FY2010, ending 12/31/10, revenue was $69.82 million with $23.31 million in losses compared to FY2009 revenue of $11.56 million and $26.2 million in losses.
Half-dozen analysts have taken notice of Neostem and the company appears to be showing a nice top line, so, with the stock at around $2, it may be worth a shot.
Our 24-month target for the stock is $3.25 to $3.50.
For more information, contact NBS’ Robin Smith at 212-584-4174; rsmith@neostem.com
MEDICINOVA, INC. (NASDAQ: MNOV) – $2.47. Twelve-month hi-low has been $6.59 – $2.12. Based in San Diego, CA, with about 25 employees, this biotech has 15.25 million shares outstanding, $58.34 million in total current assets, $72.93 million in total assets, and $48.23 million in total liabilities, of which $9.48 million is long-term debt. Institutional ownership is around 2%. Three analysts rate the stock a “strong buy”. www.medicinova.com
Yes, MediciNova, Inc. has more long-term debt than we usually care to see, but the company has a nice stack of cash and, more importantly, has a pipeline that includes six clinical-stage compounds.
Founded in 2000, and public for just over four years, MediciNova, through strategic alliances primarily with Japanese pharmaceutical companies, is developing products for treating asthma, acute exacerbations of asthma, multiple sclerosis, central nervous system disorders, interstitial cystitis, solid tumor cancers, generalized anxiety disorder/insomnia, preterm labor, and urinary incontinence. Its principal product development programs consist of MN-221, which completed a Phase II clinical trial for treating acute exacerbations of asthma, and completed Phase Ib clinical trial for treating chronic obstructive pulmonary disease; MN-166 that has completed Phase II clinical trial for treating multiple sclerosis; and AV411, which has advanced through multiple Phase I and Phase IIa clinical trials for treating central nervous system disorders.
MediciNova’s other product development programs include MN-001, which completed Phase II/III clinical trials for treating interstitial cystitis and an oral dosing formulation prototype for treating bronchial asthma; MN-029 that completed Phase I clinical trial for treating solid tumors; MN-305, which completed Phase II/III clinical trial for treating generalized anxiety disorder and Phase II clinical trial for treating insomnia; MN-221 that completed a Phase I clinical trial for treating preterm labor; and MN-246, a Phase I clinical trial completed product for treating urinary incontinence. It has also has a few preclinical products for treating thrombotic disorders.
This is another small biotech that earns zilch and piles up some major losses. During FY2010, ending 12/31/10, losses were $20.2 million.
So, why the attraction here? First, the three “strong buys” on the stock. And,the company has a lot of products in the biotech pipeline that appear promising.
Our 24-month target for the stock is $4.25 to $4.75.
For more information, contact MNOV’s Mark Johnson at 858-373-1500; info@medicinova.com
Look for the June 5, 2011 Newsletter to be posted on 6/1 or 6/2.
Thank you,
George