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They say it’s darkest before dawn, and in my observation, I believe it - especially when it comes to stocks.
Last week was downright painful, but also strangely bearish. In fact, it may have been too bearish. I think that strong and rapid selloff may have been enough to really wash any problems away and let the market continue on its merry bullish path, at least for the time being. Today’s bullish action lends itself to the same idea.
However, discipline dictates that any kind of opinion like that be based on evidence rather than a gut feeling. So, here are a few things I personally consider bullish….
The Russell 3000 touched its 61.8% Fibonacci retracement line on Monday, and then started to rebound. That also happened to be right where the 200 day moving average line was - the grand-daddy of all moving averages.
The Dow Jones Industrial Average brushed its 38.8% Fibonacci retracement line and also started to move higher. This line near 13,275 was also (basically) the support level defined twice in June, so we don’t take it lightly.
Now, in the interest of fair play, neither the S&P 500’s nor the NASDAQ’s Fibonacci lines have meant much with this recent dip. So, we’re not taking these two charts to the bank just yet. We do, however, want to show you one more chart - the S&P 500 compared to its volatility index, the VIX.
In a nutshell, Friday’s new multi-year high for the VIX, coupled with Monday’s big move lower, may well indicate a peak in fear….which also means a bottom for stocks.
Like I said, these are just some musings at this point. On the other hand, I feel much better about taking a swing on some upside bounces than I do trying squeeze out any more downside momentum. I’ll keep close tabs on (and blog) what I see, so stay tuned.
If you missed the blog entry about Zupintra Corporation (OTCBB: ZUPC) from a few minutes ago, then this one might not make as much sense. Be sure to look immediately below, or just click here to get the background story. In any case….
Yes, the financing capabilities that allowed Zupintra to start terminating some calls in the Zupintra network were indeed part of the two-edged insurance/credit requirement.
As you might recall, we’ve been lamenting Zupintra’s technical ability to route international long-distance traffic not being backed by the ability to bill for it. Why? The big players don’t pay as you go - they want to be billed later. The company needed accounts receivable insurance (which they already had), but also letters of credit (which they were trying to get). We’ve now learned that at least some of the letters of credit they were seeking from Londesborough have indeed been approved. Initially, the Londesborough line of credit is worth $5 million. But, with the relationship now forged, it will be much easier to scale into bigger lines of credit.
This is basically what we were waiting for. Per my Zupintra ‘rant’ a few days ago, I’m still waiting to see just how they’ll be able to turn this financial capability into revenue….and how much. Overall though, this is encouraging. I’m also very surprised the company didn’t explicitly say the Londesborough deal was completed - that was the missing piece of the pie for a lot of people. All the same….
As promised in our last blog entry on Zupintra Corporation (OTCBB: ZUPC), I’m going to be following the company very closely as their revenue story unfolds. Today, they announced they’ve taken another step in the right direction.
In short, new clients (long-distance providers) are starting to use Zupintra’s network to terminate phone call (i.e. connect to the call’s recipient). No word on how many clients, calls, or dollars are associated with this initial small-scale launch. Zupintra has been fairly secretive when it comes to that kind of proprietary stuff - and rightfully so.
There was something else that really stuck out to me in the press release though….CEO Lex Van Arem said it was the company’s financing capabilities that allowed these new connections to be made. For those who’ve been following the company in detail, you’ll recall getting the proper accounts receivable insurance in addition to letters of credit was necessary for the operation to really get rolling in a big way. I don’t know if they have all they’re going to get, but it looks like they now at least have some degree of their needed capacity. I’ll see if I can find out more.
Until then, here’s the news release.
Don’t blink - you might miss something. Just a day and a half after announcing they were buying Appalachian Oil (AOGA.PK) and creating an energy division from it, Titan Global (OTCBB: TTGL) already issued their first energy-related news release.
NewGen Technologies (OTCBB: NWGN) has been named the exclusive biofuel manufacturer/provider for Appalachian Oil. The agreement is good for a ten year period.
It doesn’t take a rocket scientist to see this biofuel deal was intrinsically linked to the Appco acquisition. It looks like a proverbial win-win-win to me. In fact, NewGen’s Chairman is quoted in the press release as saying they were looking to partner with Appco anyway, in order to take advantage of their strong distribution capabilities and terminal network in the southeast United States.
As for how Titan got involved in the mix - as we said a couple of days ago - they just wanted to diversify by scooping up what we hope was an undervalued oil company. Cognizant of the potential NewGen/Appco relationship that was on the table before Titan got involved, Titan will be paying NewGen about $1.9 million to offset their expenses thus far.
What’s not in the press release is any data about NewGen, or what kind of financial impact a biofuel product could have on Titan’s total sales. I can’t imagine the market is very big yet, though it might be ten years from now. I also don’t know how much of a revenue increase NewGen might experience from using a new outlet. I assume it’s enough to entice a partnership among the three companies.
Just for perspective though, I was able to find out NewGen did $724K in sales during Q4 of last year, and $192K for Q3. There was nothing before that. In just Q1 of this year, they did $982K in revenue. So, this is a relatvely new operation I’d say could do about $4 million per year without Appco. Considering Appco did about $400 million last year, it seems to me this is a bigger deal for NewGen than anybody else. Even if biofuels are initially only 1% of Appco’s total sales, that could mean a revenue-doubler for NewGen. (And from a bigger picture view, I believe biofuels may be a big deal sooner than many of us think. So, maybe this will be a huge win for everybody.)
In the meantime, the stock has been on the move, somewhat making good on the breakout discussion we posted yesterday. I’m still not sure it’s ready to stay above those resistance lines - only the reaction to a pullback can say for sure. If TTGL loses a little ground and the market panics, then the stock is still on hold. If instead the selling is soft and the buyers quickly jump in again, then I don’t know where this thing could stop. I’m drawing that line in the sand at $1.25.
In just a few short trading hours after we learned Titan Global (OTCBB: TTGL) had entered the world of energy by acquiring much-bigger Appalachian Oil (AOGA.PK), TTGL shares have knocked down a couple of barriers on their chart.
As we mentioned in yesterday evening’s edition, TTGL was hitting resistance at its 200 day moving average line, as well as a long-term resistance line. The 50 day line was in the mix as well, though not shown here. Today, Titan’s buyers today have managed to get the stock above that resistance, hopefully breaking the slump.
Not huge deal - sometimes these things are nothing more than fakeouts, and end up fading just as quickly. However, it’s at least something to build on, so we’ll certainly be watching. The next ceiling is the 100 day line at $1.16, and last month’s peak at $1.19. If those also fall, then I’m really going to start liking our upside chances.
We already know the basics, but as usual, we suspect we’ll get a little more ‘feel’ and extra insight from Titan Global’s (OTCBB: TTGL) conference call later this week.
The call is on Friday, July 20, 2007, at 12 noon EST. Callers within the United States can access the conference call by calling (866) 269-9609; when prompted tell the operator you would like to connect to the ‘Titan Global Holdings conference call.’ International callers can dial (612) 234-9960.
An online audio web simulcast of the call will also be accessible at http://www.trilogy-capital.com/tcp/titan/.
For phone-callers, CEO Bryan Chance will be addressing investor questions. So if you’ve got one, don’t be shy - hopefully you agree by now the Q&A session is where you get some of the best information (and some information the rest of the market doesn’t hear).
Just as a reminder, Titan swung to a profit two quarters ago, and stayed profitable during their last reported quarter….even with a lower revenue figure. Despite last quarter’s sales dip, revenue has just been growing like crazy in the bigger-picture. I’d like to hear what these guys have to say, if only to figure out how they’ve done it, and how they plan on doing it some more.
As you’ve probably already heard, Orchestra Therapeutics (OTCBB: OCHT) has decided to discontinue the development of their HIV treatments, currently in trials. The bottom line was they just didn’t see enough of a benefit in the results achieved by the 52-week mark. If you want the full details, the link to the press release is below. I just want to focus on my opinion of how this impacts investors rather than the underlying science.
Honestly, I have mixed feelings here. In some ways, you have to admire a company willing to do what makes the most sense for everyone in the long run, even if it’s an unpopular decision. IR103 and REMUNE - the two developmental HIV drugs being dropped - don’t work well enough, and the company doesn’t want to burn money for no reason. Certainly at this point investors can appreciate that.
On the other hand, it was only a few months ago the company was touting their work (which really did have some promise) against HIV/AIDS. That was the exciting part to investors - including me - in addition to being the key driver for most of the company’s fund-raising. Now it’s just plain gone.
There’s an old investing adage….if one of your three top reasons for owning a stock has changed, then you probably don’t want to own the stock anymore. I know for a lot of us, the possibility of creating a cure for HIV was the compelling factor. I’ll let you interpret that however you want, but……
Though the IR103 and REMUNE vaccine programs are being dropped, don’t forget they’ve got a leg up in the development of drugs for other autoimmune diseases like multiple sclerosis (MS), rheumatoid arthritis (RA), Crohn’s disease, Psoriasis, Lupus, and type-1 diabetes. In fact, that was the whole reason for the name change from Immune Response to Orchestra Therapeutics - to better reflect the company’s new focus.
The autoimmune disease treatment market is much smaller, with a lot more competition, but the downside is countered with the notion that Orchestra has a much better shot at getting something to the market in the autoimmune arena.
The point being, though the old three reasons you may have had for being a shareholder are now changed, maybe there are three new reasons just as valid.
On a side note, though the release didn’t really detail this, the books could be getting ready for a jolt of cash. All of their HIV technology, research, and collective work may be up for sale to someone with the means to carry it through to the next level. And the biotechnology facility that’s going up for sale now that Orchestra doesn’t need it anymore? It’s worth an estimated $75 million.
Now, according to the company’s most recent SEC filing, Orchestra’s current market cap is somewhere less than $10 million. See the math there? The break-up value may end up being a hack of a lot bigger than the share’s price, even if they can only divest their properties at half their value. Just something interesting to think about.
My only advice is this - don’t dwell in the past. OCHT was a poor-performing stock, when the focus was on an ultimately-doomed HIV treatment. The autoimmune disease focus is mostly new, and may also mean brighter days for the stock. If it were anybody besides Orchestra with the same news, opportunity, and knowledge, would you be interested then? That’s the litmus test.
Just for the record though, I’m not counting on brighter days real soon in terms of scientific progress…or even for investors. I see some of the same patterns popping up with the NeuroVax (their lead autoimmune drug) trials that we saw with their HIV work; we’re hearing about how great it could be, but phase II testing isn’t anywhere near done. I’m thinking they need to really ’show me’….something I seem to be saying a lot lately.
I think the company also has a ton of ill-will to overcome. They burned a lot of people…..a failed HIV drug, unfair financings, poor communication - the reasons are numerous. It could be a while until enough faith is restored to get the chart moving upward again. Needless to say, I don’t expect much at this point.
For more details on the HIV trial results and Wednesday’s decision, click here.
Like many of you, I’ve been watching Zupintra Corporation (OTCBB: ZUPC) pretty closely of late. The stock’s performance has been abysmal, even though the company was ’supposed to be’ on the verge of some huge numbers.
As I look back on our coverage, I’m really starting to wonder if this is going to be another Web2 Corporation (OTCBB: WBTO). You may recall Web2 had become proficient at launching new websites, diving into opportunistic markets, and implementing an impressive revenue-bearing business model. Unfortunately, they spent all their time talking about how much money they were going to make, and never actually made any of it. (To my knowledge, Web2 is still not drawing any real revenue from the sites they launched late last year.)
We’ve been hearing something similar from Zupintra, which is why I have to wonder when it’s actually going to happen for them, or if the revenue chatter is going to persist. According to the stock, the market doesn’t think it’s going to be soon enough.
The latest insight/debacle is this business with the accounts receivable insurance. You may recall that in order for Zupintra to play ball with the major carriers (and do business on the scale they needed), they went out and got $10 million worth of accounts receivable insurance. With credit terms of 30 days for their customers, this would roughly allow the company to issue up to $120 million worth of invoices each year….or at least that’s what the company implied, right?
As it turns out, accounts receivable insurance isn’t enough to start billing on a mass scale. Now they also need letters of credit, presumably for the same dollar amount of AR insurance they have (though I’m not really sure how much credit is needed).
Now, you might remember they received a term sheet for a $40 million line of credit through Londesborough Finance back in May. However, that deal still isn’t signed, sealed, and delivered - it was just receipt of a term sheet. As far as I can tell, they may have just as well sent out a press release telling us they received a daily newspaper.
So yes, the Londesborough deal should allow the company to turn on the revenue spigot in a big way, barring yet another task that has to be taken care of after that’s done (something I really am worried about). The question is, when will it happen? It just seems like everything keeps getting pushed back. I really hope the line of credit is finalized soon. Guess we’ll see.
I’m reminded of one of the early scenes from Adam Sandler’s movie ‘The Wedding Singer’. His bride-to-be doesn’t show at the wedding and leaves him at the alter. When she comes to his house later that same day to let him know she doesn’t love him, he responds “That information could have been useful to me yesterday.”
I love the concept and the opportunity with this company, but this business with AR insurance and credit lines is something they could have explained to us yesterday….or a few weeks ago. There’s nothing wrong with doing things right - I just think they jumped the gun on spreading the news.
Aside from being frustrating, it leaves an aftertaste of skepticism in my mouth. This one’s been a big disappointment to say the least. The company had a good track record of doing what they said they were going to do, but taking this particular step seems to be dragging on forever. I’m willing to give any company time to do anything they need to do to get ready to do business - just tell me when you’re done, rather than imply it’s near done when it’s really not. They pretty much used up all of my goodwill with them.
So, there’s really only one relevant question……will Zupintra every actually be able to produce that $2.5 million per month they said they would?
In all fairness to the company (and despite my rant), yeah, I really do think they’ll be able to put up those kinds of numbers. And, I think it may happen relatively soon….within several weeks to a few months. The line of credit from Londesborough seems to be the key.
At this juncture though, my point of view and message to Zupintra is ’show me’. Giving the company the benefit of the doubt hasn’t been helpful. I can’t invest in hopes and potential forever. Show me you can turn that AR insurance, those lines of credit, and all of that infrastructure into a revenue machine. You do that, and you’ll win back your biggest fan.
In the meantime, the stock is trading exactly like you’d expect from a company that didn’t live up to the hype quickly enough. Pure traders may see something on the current chart they like, if not now, perhaps later. I don’t think true investors quite see enough value yet…..and may not until we start seeing dollars flow in.
As always, I’ll be following the fundamentals and technicals, and will let you know as soon as I see anything worth sharing. I’m certainly not giving up on Zupintra, because the opportunity really is there. I think at this point though, we have no choice but to scrutinize instead of assume, picking and choosing our battles.
By the way, I know many of you may still be holding ZUPC shares based on our initial comments, which could make today’s op-ed a little confusing. The only thing I can say is, this is why we use stop levels. We suggested an exit at 14 cents, just because nobody ever really knows for sure what a stock’s going to do. It’s not that we’re always right, but we are always disciplined.
If you held onto your shares under 14 cents, you basically made the decision to become a long-term investor. There’s nothing wrong with it as long as you understand the upside and downside possibilities. However, it doesn’t exactly reflect what we think makes for the best trading practices - even a long-term investor can benefit from playing smart short-term defense. Just something to think about.
Any additional thoughts or insights are welcome - just click the link below. Just keep it constructive, helpful, or meaningful.
Do I really even need to say it? For those who’ve been around for more than a few weeks, Titan Global’s (OTCBB: TTGL) results should come as no surprise. For the benefit of any new-comers though, I’ll go ahead and share my two cents along with Titan’s news.
Revenues for their quarter ending on May 31st totaled up to be $30.8 million. That was actually less than the previous quarter’s $36 million figure. Check this out though - for the prior quarter, net earnings came in at $1.5 million…..the company’s first profit ever. This quarter, earnings totaled up to $5.7 million. Of course, a little over $4 million of that was only an accounting gain rather than an earned gain, but still, it’s cash.
Dividing that grand total by the company’s 49 million outstanding shares, what you get is a net income of 11 cents per share - which isn’t bad for a stock priced at 95 cents. Though the company still plans on buying back up to 4 million of those shares though, right now (annualizing that 11 cents worth of per share profit) TTGL’s P/E ratio is 2.16. Removing the one-time gain, per share earnings are more like 4 cents. At that rate, the P/E is more like 6.0…..still impressive.
A ridiculously low P/E ratio in itself would be enough to get me excited, but there’s a bigger picture idea here as well….this is the second straight quarter of positive earnings (and I think at least the 6th straight quarter of bottom line improvement). I don’t think this is a fluke. I believe Titan is the real deal, and they’ve got the numbers to prove it - something I predicted they’d do a while back.
You could counter with the lower revenues argument, but the much bigger earnings total is made even relatively bigger by a diminished top line (you know - ‘more with less’). And even without the one-time bottom line boost, as a percentage of sales, profits were still up. Besides, we knew the top line was going to contract when they renegotiated their deal with Sprint, which was what ultimately allowed the bottom line to increase so much.
I think this is the prime example of why anyone would want to speculate in small caps - the rewards can indeed be reaped. I think Titan’s time has come. Personally, if I was thinking about becoming a TTGL owner I don’t think I’d want to wait for a third straight quarter of bigger, positive net earnings before taking the plunge - particularly when the stock’s P/E is where it is.
For more, click here.
In the meantime, take a look at the chart. The market seems to have liked the news, pushing TTGL above its 20, 50, and 200 day moving average lines all in one fell swoop. There’s one last lingering resistance line (blue), and if it falls, I expect to see a breakout move. Just for some perspective on how much this stock can move once it gets going, it quadrupled in price in just the latter half of last year.
If you were waiting to see if Stockgroup Information Systems’ (OTCBB: SWEB) Q2 results were going to justify the strength of the current chart, you’ll have to wait about another month. (I for one think they will…..the company has turned in 17 straight quarterly revenue increases. Why would the 18th be any different?)
Their earnings call - as well as a simultaneous webcast - is scheduled for August 15th at 4:05 P.M. EST. However, they plan on releasing their actual results at 3:00 P.M. EST that same same. I’m assuming we’ll get the basic financial results first, and the details will come later in the afternoon (along with an outlook). And yes, we’ll be publishing sometime shortly after the earnings are announced.
One of the things I’ll be curious about is the successful monetization of Stockstream Platinum. It wasn’t technically launched in Q2, but a few more brokers and banks started using the service last quarter. Also, it was the second ‘live’ quarter for their mobile product brought into the mix with January’s purchase of Telecommunication Systems’ Mobile Finance Division (not the Reuters version announced a couple of weeks ago….that’s something different.) Additionally, Stockgroup should fiscally benefit from Q2’s acquisition of Semotus Solutions’ platform - a lower-cost mobile data delivery service that targets retail investors as opposed to institutional players.
Point being, Stockgroup now seems to have a little more revenue ammunition.
If you’re a phone-type of person, dial 1-866-400-2280 a few minutes before the call. If you’d rather use the web to listen in, just go to www.stockgroup.com a few minutes beforehand.
For more on the announcement, click here.
If you missed Stockgroup Information Systems’ (OTCBB: SWEB) big surge from $1.09 to $1.29 on June 28th, don’t worry too much - today may be a nice second chance. (Just for the record though, we mentioned a big move was probably brewing several times beforehand…well ahead of the rally.)
Drawing Fibonacci lines from June’s floor at 93 cents all the way up to the peak at $1.32, the 38.2% retracement lines falls in at $1.16, while the 61.8% retracement is lying at $1.07. I think the latter is out of the picture right now, but the 38.2% level is clearly in play - today’s low for the stock is $1.16.
However, the Fib line isn’t alone. The 20 day moving average line has finally caught up with the stock after its big move, and it too is resting at $1.16.
Between those two important support lines, I believe the odds are good that SWEB can pull out of today’s funk rather well, after all of these sellers are washed out.
You probably already heard it, but in case you didn’t, General Electric (NYSE: GE) has decided not to acquire the diagnostic division of Abbott Laboratories (NYSE: ABT). The $8.1 billion deal was first announced in January, and both companies seemed to imply it was a ‘done’ deal. Looks like it wasn’t though. There are plenty or rumored reasons why the deal fell through, but I doubt we’ll ever really know the true reason.
We wanted to note it here though, as some of you may have questions about where BioCurex (OTCBB: BOCX) will end up landing as a result the news.
You may recall Abbott was going to be a licensee for BioCurex’s RECAF technology, and was even helping them move its development along. With the possible sale of the diagnostics division, any rights and responsibilities Abbott had would be transferred as well. In fact (and incredibly ironically), just a few days ago GE had inked an affirmation of the agreement with BioCurex.
It’s my understanding the GE/BioCurex agreement hinged on the completed sale of Abbott’s diagnostics division. Now with no sale taking place, things should basically be restored to the way they were….meaning Abbott now controls their license again.
Ultimately, I think it’s a non-issue for BioCurex. Both GE and Abbott were supportive of BioCurex’s work, so I don’t know if it even really matters from BioCurex’s perspective. Personally, I’d say it doesn’t.
That being said, there are already whispers of Abbott out there shopping for other potential buyers. As with the GE’s now-undone purchase, I feel any buyer will once again take on any of Abbott’s obligations.
I’ll let you know more when I hear more.
The broad profit picture looks a little better with Thursday’s announcements. Here are the latest numbers from the major names……..
Last month’s retail sales, however, seem to be more of a mixed bag. J.C. Penney’s June sales (same store) were off by 1.5%, while Wal-Mart’s (NYSE: WMT) were up 2.4%. Chico’s (NYSE: CHS) sales dropped 7.3% last month, and Costco (NASDAQ: COST) saw a 6% gain in June’s top line.
….and I for one am more than a little excited. After learning in early June that an MIV Therapeutics (OTCBB: MIVT) biocompatible heart stent had been implanted in a human for the first time, I really felt like the company had passed a milestone. It looks like some other (big) investors agreed, as MIV raised $11.7 million a few days ago with a private placement deal. Other than those two tidbits though, we haven’t heard a lot from the company lately.
So why am I excited? Because the company had a bunch of things going in before that….things I’d like to hear more about. Specifically, in April, we learned MIV’s acquisition of Biosync Scientific (and its heart stent technology) was finally reaping rewards, as the company began selling those Biosync stents and related devices in India, parts of Asia, and parts of Europe. It was MIV’s first-ever revenue, and though those stents being sold weren’t the highly-promising biocompatible stents MIV has been developing for a while now, revenue is still revenue.
Plus, I’d also like to hear the company’s initial thoughts on getting their first hydroxyapatite-coated stent into a patient.
Fortunately, we won’t have to wait much longer for an update - MIV Therapeutics will be hosting a conference call to get all of us up to speed.
The call is scheduled for Friday, July 13th, at 11 a.m. EST. Callers within the United States can access the conference call by calling (800) 398-9402. International callers can dial (612) 234-9960. When prompted, just tell the operator you would like to connect to the MIV Therapeutics conference call.
You can also listen to the online audio web simulcast of the call, accessible by clicking here.
Is this the shape of things to come? We’re now getting into the thick of earnings season, and right off the bat we’ve seen some big names stumble…..
And the deeper you dig, the bigger the list gets.
Maybe Bernanke will be able to help later this afternoon when he speaks, although he’d have to be Superman to offer some relief here. I can’t help but think this sets the tone for the rest of the season though.
What am I doing about it? Honestly, not a lot. If there’s a large cap I own that’s vulnerable, I may bail on it, or buy some put options if I don’t want to sell it. I know a day (ok, a month) of reckoning is coming sooner or later….maybe this is it. Maybe not. If it is now though, I’m mentally prepared.
And what about small caps? Well, that’s where it gets even more interesting. My rotational sensibilities (as many of you may recall) tell me we may actually see this cash outflow from large caps get put back into the small cap market….finally. If not, then at least there’s some comfort knowing the small cap market trades fairly independently of the large cap market.
Anyway, I’ll try and keep a running tally of whether the earnings news was good, bad, or indifferent.
To tell the truth, it wasn’t the news from Clearly Canadian (OTCBB: CCBEF) today that prompted this blog entry…..that was just a coincidence. But, if the news comes up at the same time the chart hints at a move, so much the better.
The ‘news’ - It kind of struck me the other day how 15 years ago, Clearly Canadian’s novel water drinks were considered alternative beverages…..a term still used to describe them today. I think, however, it’s time for consumers to accept something - they aren’t really alternatives anymore. Healthy-choice drinks are now mainstream. While Coke and Pepsi haven’t been shoved into the corners of convenience and grocery stores just yet, today’s announcement tells me good ol’ H2O may be a bigger piece of the market than really anyone realizes.
The evidence? Canada’s largest grocer - Loblaw’s - now carries Clearly’s Natural Enhanced Water lines. The coup follows this product line’s introduction to 100 other supermarkets who have already added Natural Enhanced Water since April. This new water line is also starting to roll out in the United States - an even bigger consumer market.
Alternative? Not anymore it isn’t. For more on the news, click here.
In the meantime, here’s what I really wanted to show you……
We’ve all probably used the term ‘roller coaster’ to describe an up-and-down chart. However, I don’t think the description could be any more fitting than when applied to CCBEF’s current chart. We’ve seen nine ‘ups’ and eight ‘downs’ since hitting the November bottom…..not an easy thing to ride out.
However (eventually), this chop is going to cease, and we’re going to see a sustained trend. Could now be the time? Maybe.
The last three days have pushed CCBEF back above all of its moving average lines, after a not-so-bad pullback led to a low of $2.62. This is the second quick recovery we’ve seen in less than a month, and the volume behind the bounces has been better than the selling volume. And if you take a step back, you can generally see the ups have been better than the downs.
The counter-argument (and a decent one at that) is just that this stock, despite the slightly bullish bias, is still in a choppy mode. I can’t disagree.
Based on the short-term momentum, maybe now is a chance to take a swing on that long-term move. I guess it just depends on your trading tastes. Whether you jump in now or later though, I think the $3.00 level is a big one to watch….for better or worse.
It seems like every few months, RECAF finds yet another use. The latest possibility was announced today. BioCurex (OTCBB: BOCX) believes their RECAF technology may also be used in conjunction with genetic testing for high-cancer-risk individuals, thus expanding the potential size of the market.
Just as a quick recap, BioCurex’s patented RECAF technology was originally put into development as a cancer-detection tool. In fact, early research shows it can be quite successful at doing just that. More recently, the idea of attaching a drug to the RECAF-based marker has been discussed. It would be a powerful possibility, as the marker ‘highlights’ where cancer is, and leaves non-cancerous cells alone. Thus, it may be perfectly-suited to be a drug delivery system. And within the last few weeks, the company announced an effort to develop a ‘point of care’ cancer screening test. Instead of requiring lab work to complete, this test could be performed and fully analyzed with just one doctor’s visit.
Today’s news may have opened yet another door. Whereas a high-cancer-risk individual can be spotted by genetic testing, that same testing doesn’t indicate when cancer has actually been developed. BioCurex’s RECAF test, on the other hand, can do exactly that. By regularly screening these high-risk individuals, the RECAF test may be even more frequently used than first imagined.
Like the press release says, it’s just an idea so far. But, it’s a good one….one that could potentially mean a substantial amount of additional revenue for the company.
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Still hearing the echoes of their next-generation biocompatible stent finally being implanted into a human, late last week we heard of yet another big victory for MIV Therapeutics (OTCBB: MIVT)….and probably its shareholders.
What do you think it means when a company can attract $11.7 million worth of capital investment from institutional-level owners? Considering the current market cap is $51.5 million, I’d say it’s a big statement about what these people see in store for these new heart stents.
The deal was a private placement deal, garnering 50 cents worth of funding for each of the 25.1 million shares sold. For each share purchased, the buyer also received a half-share warrant to buy the stock at 55 cents, exercisable over the next five years. The gross size of the transaction was $12.5 million, while MIV netted $11.7 million.
The company spent $6 million in 2005, and a little over $9 million in 2006. Though the onset of the next stage of testing for their next-generation hydroxyapatite-coated stents may up their expenses somewhat, also keep in mind they recently purchased a handful of revenue-producing properties. So, it seems some of that added cash outflow is going to be offset by something besides this fund-raising.
While it’s still not clear at what point in time the new stents will win widespread approval, perhaps this cash infusion will go far in seeing them through to that point (maybe all the way?). Whatever the case, this is a big win for MIV Therapeutics….a lot of smart money just jumped on the opportunity with big bucks. That goes a long way with me.
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No major surprises with BioCurex (OTCBB: BOCX) today….the stock opened up pretty firmly at $0.60, and has proceeded up to the current level of $0.65. That’s an 8.3% gain so far. Volume has been strong too - 150,000+ shares, and we may see the best volume since early March at the current pace. So, things are going pretty well immediately after we learned General Electric (NYSE: GE) would indeed honor Abbott’s (NYSE: ABT) licensing commitments.
From here, there is one last thing I’d like to see to really get excited. See the dashed line below? It’s the 200 day moving average line - the grand-daddy of long-term momentum indicators. The reason I’m particularly interested in it right now is BOCX’s recent inability to actually get above it. Even today, touching it seems to have encouraged some profit-taking.
It’s currently at $0.657. Ideally, any current or prospective owners will see a couple of closes above that mark. Being the first close above it since October, that could really carry some weight with any doubters.
Still, the move has already carried the stock past a long-term resistance line red. That’s a good start - I just hope we get some traction this time.
