Reader’s Small Cap Stock Questions Answered (or at least addressed)
Sorry I haven’t had a chance to get to all your small cap questions lately. Between V2k (VTOK) and Bio-Matrix (BMSN), I haven’t had much time to get to them. That’s all going to change today though. Anybody who’s sent in a question to the Small Cap Network within the last couple of weeks is about to get an answer…or at least a response. I’ll put them all here in the blog so everyone else knows what other readers are thinking.
1) Hi, Can you provide a recent Balance Sheet for Bio-Matrix?
A. Sure, though I don’t think it means much for this particular stock pick. They have next to nothing. They’re staying afloat by issuing a little debt ($50K for the last round) until they can get licensed…which should be (hopefully) in less than a couple of months. Here’s the last balance sheet: http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001157523-08-001453&Type=HTML
2) Hi Can you recommend a small cap company like mos (Mosaic), pot (Potash) or mon (Monsanto)? Would like to find one to invest in.
A. I can’t, but if you have a brokerage account you may have a screener that could do the job. Yahoo’s stock screener is actually not bad, though I don’t know if you can get that detailed with the industry. MSN’s isn’t bad either. Agriculture has been a good one of late though…maybe worth a look. Here are the screener sites:
http://moneycentral.msn.com/investor/finder/customstocksdl.asp
http://screen.yahoo.com/stocks.html
3) On their (Heritage Capital - HCPC) website they show they close a $672,000,000 BCLOC loan. Their current listing price on the otc.bb is .0004. There has been a lot of talk on Allstocks and IHUB forums that it could explode into the pennies after the funding clears. Any thoughts?
A. I’m nowhere near as enthusiastic as anybody on the boards. Sounds like a pump and dump. I’d steer clear.
4) Delcath (DCTH) Believe this company (Delcath - DCTH) fits the profile of the type of companies your profile. 1. $40mill cap 2. about 18mill cash 3. pIII liver cancer study 4. multiple pII liver cancer studies 5. published data thus far has been outstanding (70%+ response rates) 5. NCI partnership 6. Huge upside on FDA approval (could see in the next 12-18 months)
A. Not bad. We’re including it here so our readers can make the decision for themselves. Thanks.
5) Is ZUPC completely worthless now. Is the company still here?
A. It’s still ‘alive’, though barely. We dumped them long ago. Yeah, basically worthless (in more ways than one).
6) i cant understand why you aren’t recommending shorting - this is a phenomenal bull market for shorting - one of the best in years - and i can’t understand why you aren’t recommending short positions - you just plain short every rally and will succeed a minimum of 3 out of five times - the shorts not working you just cover - no big deal at around 7 bucks a trade
A. Oh, we don’t disagree. We personally don’t mind shorting, but not everybody on our list can, or wants to. For those folks there’s always the option of a short ETF or put options. Point well made though…if you’re not playing the downside, you’re missing opportunities.
7) You wrote up a report on SWEB I believe and was wondering how you feel about that now with these big ups and downs. I have held onto it and actually have owned it for sometime. Also could you give any thoughts on ATML.
A. There’s been more down then up for StockGroup, but here’s what we see now…the stock is a nice value idea. I also think the company has been distracted by the new website, which cost more and took longer than they planned. It’s over now though, so maybe they can get something going. Personally, I love the concept of what they do. They just haven’t made enough money (or progress) to justify the share price….at least not yet. Maybe 2008 will be the breakout year (not out of the realm of possibility). At this point you have more upside than downside, I think. As for ATML, I’m torn.
8) Hello, I’m interested in investing in ADR’s but do not want a mutual fund type of investment. Can you recommend sources for independent investors to purchase them for their portfolio?
A. Not exactly sure what you mean here, but I think this will answer…..an ADR is just a single foreign stock traded on an American exchange. As long as you have a brokerage account, you can buy anything any U.S. exchange trades. Technically it’s not direct ownership of foreign stock, which is either difficult or impossible to do for most retail investors. To facilitate the American ownership of foreign stocks, a company will buy foreign stocks, and issue what are essentially vouchers for that stock to U.S. investors. It’s a basket concept (like an ETF or fund), but there’s only one stock in the basket. As for resources, find all the ADRs right here. http://www.adrs.com/. In terms of other resources, you’ll find most ADRs peppered in along with American stocks, so wherever you find those, you’ll find most ADRs.
9) Ran across this on spng from Beacon (traders notes) Link: http://www.beaconequity.com/index.php?option=com_content&task=view&id=885&Itemid=73 Does this mean it is now a good entry point on spng. Thanks for the input
A. It should mean it, but nothing has helped SPNG yet. So, no.
10) Can you tell us what has happened to or the latest info on Source Petroleum Inc. (SOPO). The stock seems to still be trading but the last news information they released was in 2007. I cannot find a quarterly report and the web site Source-Petroleum.com has been taken down.
A. I can’t find anything either, which is never a good sign. They also stopped reporting to the SEC, which is a particularly bad sign. I say take the non-presence at face value….they’re dead or near death.
11) Hello. Thank you so much for the stock picks over the last several months. You guys do a great job. I was wondering if you could find out the first couple locations of the kiosks that are going to open up selling the window treatments, etc. I like to see things first hand, and this will allow me to get an early read on the worthiness of this extension. Thank you.
A. I can’t, because they don’t want anybody to know (including me) for proprietary reasons. I can show you one though….it’s then image nearby.
That’s it for now, but keep ‘em coming.
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