PRED a real "dog", but we still believe that it will be transformed into a Unicorn!
POLITICAL RANT SECTION!
Investment brief on CVU ~$3.30
PREDICTIVE TECH GROUP~ PRED~.42
We suggest that if you are new to the "letter" please visit our past 7 email alerts in order to get a handle on the past performance of PRED shares. It has not been a pretty picture and the share price has of course hurt ALL investors and institutional players as well.
The share price has been attacked endlessly by a coordinated effort by "short sellers" and the short selling publication HB! If that was not bad enough the SEC suspended its trading shares for 2 weeks while it reviewed a presser that the company released to the public concerning its new venture in the distribution of Covid-19 rapid result test kits ( Assurance AB Covid-19 IgM/IgG Rapid Antibody Test).
Assurance AB is a single use, self-contained test that provides results in 15 minute.
If you would like to view the whole story on their kit please review the following link.
After the 2 weeks FINRA delisted the shares from the OTC "pinks" and now shares trade on "Grey Market"!
The stock took at big hit in share price, but at least there is NO more shorting. The company intends to file a 15C211 in the near term once the company decides how it should proceed as a publicly trading security.
Like most companies during the past few months the normal course of business came to a stand still and PRED reduced operation dramatically because most health clinics that purchased varied Stem Cells from the company ceased operation. The continued commercialization of ARTguide and FertilityDX which are proprietary tests that assess a woman's endometriosis risk and other genetic causes of infertility also came to a sudden halt.
It should be noted that PRED has filed for an EUA for the Covid-19 test kit and an EUA for specific Stem Cells that have found to be helpful with Acute Respiratory Distress from Covid-19.
Note: Assurance AB has been tested some 1900X within Pred's lab as well as the NCI (National Cancer Institute). European Nations have approved this kit as well. In the EU the CE mark meets and complies with safety rules. We truly believe complete EUA approval is imminent for PRED's kit that meets and or exceeds 95% sensitivity to antibodies/Covid-19 virus.
In addition the company still has a collaborative agreement with Thermo Fisher TMO and Atrin Pharma. ( early stage cancer development company). PRED has a strong relationship with "Dablood Pharma" its manufacturing partner for the production of Assurance AB test kits in China. We believe that sales should start to ramp up in the near future. Many question the delay, but when you consider limited air traffic, customs on the China and also the US side and the log jam concerning cargo shipments, it all starts too make sense.
In the meantime EUA for test kits and Mesenchymal Stem Cells are anticipated during the early part of the 3rd Quarter. PRED also has a distribution agreement with Wellgistics for 1 million kits and to date a $5 million down payment has been made to "Dablood". We have limited information concerning the movement of product concerning this agreement. PRED is actively pursuing other avenues for test kit sales . Once the company receives EUA certification PRED intends to market these kits to large corporations. At present the kits are marketed to labs and healthcare workers at the Point-of-care.
In addition to the above product potentials PRED has all kinds of additional assets that should not be overlooked. The company has a Genetic Library of 300,000 DNA samples with serious maternal or neonatal disorder. Has over 42 patents and its lab is CLIA/CAP certified. As mentioned earlier the company's main focus is women's health including Endometriosis, Fertility and Preeclampsia . The management is equal to any Fortune 100 company in the United States. The company also has working relationship with CLSA Capital Markets Limited, a Citic Securities Company, to support product launches into China's Women's Health and Fertility market.
Regardless, the current share price does not indicate the potential that exists for share price expansion because of their tremendous playbook of opportunity. The last Q and the current Q ending June 30th are a financial horror story. The future is our only reason to be invested in this heavily discounted value play. If the company decided to sell to a suitor it is our understanding that PRED is worth at least 10X the current share price of .42. Investor's that own PRED at higher level should seriously consider averaging down at these rock bottom prices.
Investor's worry about needed cash in order to continue operations. If one looks to the past, PRED has always been self funding internally and we believe that that mechanism remains in place for further infusion of cash.
PRED has been a hard pill to swallow, but we continue to believe that with patience the "dog" that has haunted us for months is going to transform into a Unicorn that will reward the believers!
We rate PRED with a strong speculative BUY at current levels
Note: Discounted value: Food for thought
In the long run,cheaper stocks will outperform more-expensive ones. History suggest that value should excel in the end, although the wait can be long! Patient investors can over-weigh value stocks in their portfolio on the assumption that their under performance can't last indefinitely. This is PRED!
Element Global (ELGL) current price .15
There has been limited news since Jan 2, 2020
Visit their website in order to get a flavor of things to come.
WE are 100% confident that ELGL is going too rocket sooner than later and if you are aboard the ship prior to lift-off that you will profit enormously. Since ELGL is non-reporting the management team is not obligated to release anything until they are ready. WE believe that the "ready" is almost ready!
Again, visit their website and read between the lines.
We still believe that ELGL has the potential to 10X your investment. YOU just need to be patient.
We must assume that because of the Covid-19 pandemic that ELGL's business plan had been seriously affected which in turn slowed down the press release wagon train.
Before you panic and run for the hills go back to the website and look and wonder at the theme of ELGL! "An Innovative Holding Company Building A Global Network"
We remain confident and extremely bullish towards this opportunity and still rate it with a strong BUY rating at current levels.
Conversion Labs (CVLB~ .30)
Conversion Labs, Inc. is a telemedicine company with a portfolio of online direct-to-consumer brands. The company's brands combine virtual medical treatment with prescription medications and unique over-the-counter products. Its network of licensed physicians offers telemedicine services and direct-to-consumer pharmacy to consumers across the U.S. .
According to a recent press release dated June 09, 2020 management has increased revenue for 2020 to an eye-popping $38 million from $12.5 million during 2019.
According to an analyst at Forrester Research, " the adoption of telemedicine across the healthcare industry has "shifted into hyper-drive" with virtual health care visits on pace to top 1 billion by year end. Another recent report projects the global telemedicine market will expand at a rapid 20% compounded annual growth rate to reach $175 billion by 2026.
Conversion Lab's new cloud-based, end-to-end telemedicine platform addresses this fast growing market, and supports the continued market expansion of the telehealth brands.
A few weeks ago, the company raised its revenue outlook from $30 million to more than $36 million. In light of the revenue growth in May, the company expects to raise its outlook again when it reports 2nd Q results.
Excellent presentation released June 19th 2020
As of June 30th there are roughly 100 million shares outstanding and fully diluted. This includes all options , restricted shares and warrants. The company recently raised $1 million dollars and issues restricted shares and a conversion price of .50 if debt is converted.
The company as of the end of the March 31, 2020 Q had a tiny negative net worth. The revenue for the Q was $4.3 million vs $2.7 for the same Q during 2019. The loss/sh for the Q was .05 based upon 54 million shares outstanding at the end of the Q.
During the Q the company received clearance to market and sell a Laser hair restoration device! This bodes well for future revenue "growth"! Another revenue accelerator is the introduction of RexMD~ a subscription-based medication for the treatment of erectile dysfunction, which represents a high-growth market expected to exceed $5 billion during the next few years.
Overview: There appears to be plenty of upside potential from various avenues of revenue growth that CVLB has latched onto! The rapid revenue growth has been eye-popping and we anticipate that this trend will continue because of the recent products that have been introduced during the past 6 months. The upside of the share price depends upon the execution of their business model and how quickly they can turn a profit! We see limited downside risk at these levels, but this stock could easily 4-5X its current price within a 12 month period based its apparent projection of gained market share and product and services acceptance.
We rate CVLB with a strong and speculative BUY at current levels with superb upside potential within a 12 month period.
You recall from our March 30th 2020 by email alert we recommended these opportunities that had gotten beaten to a pulp. At this point we have decided to sell some positions for a huge short term gain. We continue to hold our newly formed position of ARWR! We initially recommended ARWR @ $6.00 and ran to $14 only to collapse to $2 where we re-recommended it only to see it explode Dec 2019 to $73.00. The company did a stock offering in the mid 50's during 2019.
We suggest to interested investors should review the link below for additional and very valuable opinion on ARWR!
As June 25, 2020~ S-sell, H-hold & B-buy
The "Black lives Matter" movement!
There is no question that GF was murdered by this out of control police officer, Chauvin, on May 25th 2020! Chauvin had at least 18 previous misconduct charges against him.
Amy Klobuchar (liberal dem, past prosecutor in Minnesota) was in office when Chauvin was charged with other potential crimes against civilians. Klobuchar did not criminally charge other police involved in more than two dozen officer- involved fatalities that occurred during her time as prosecutor.
Kamala Harris another potential VP pick for Biden has incarcerated countless black men. She was extremely successful in fighting crime and some of her early years 2004-2006 she had a 87% conviction for homicides and 90% conviction rate for all felony gun violation. A strong contender for VP pick, but BLM is going to have a hard time with her because her strong stand on "3 strikes and you're out"!
I know that black lives matter and i also know that all lives matter, but concerning BLM how do they justify 30,000,000 black babies aborted since "Roe vs Wade" (1973)!
In Chicago as of June 10, 2020 there were 239 homicides and the majority were young black men. Don't forget Baltimore, St Louis , Detroit and other major cities that are run by Liberal leadership resulting in an epidemic of needless death of black males that are devastating for the family unit and the community as a whole. BLM what is your opinion of that? We don't need less police, but more police in order to protect and serve. We are 100% behind regulation in order to weed out the bad cops and make them more accountable.
The looting, assaults and burning of local businesses during the recent riots is shameful and the culprits either are part of the BLM or hide behind it.
PS: BLM~ have you seen the slaughter over the weekend in Chicago (6/20-21/20
Don't you find it unusual that the top 25 Democrat-Led Cities are the worst in numerous categories. The top 10 homeless cities are sanctuary cities and the most dangerous. The top 25 that are the most dangerous are also among the poorest and least employed. Many of our fellow minority Americans struggle in these environments and many have their lives destroyed by the violence that surrounds them. Why does BLM rally around this kind of injustice?
INVESTMENT BRIEF :
CPI AEROSTRUCTURES,INC. (CVU-$3.30)
The company engages in the contract production of structural aircraft parts for fixed wing aircraft and helicopters in the commercial and defense markets. At present the current backlog is over $500 million (5% commercial) and was recently awarded a $43 million dollar contract from Northrop. At present there are roughly 12 million shares fully diluted & outstanding. The company has been in business for 40 years and all of their operations are located in New York. The institutional holdings are over 55% and management owns 13%.
The 52 week trading range $1.29- $8.64
THIS PRESENTATION IS MUST READ!
The problem with the company is that their 2018 financials must be corrected because of accounting errors. That includes 2019 numbers as well.
THERE IS NO FRAUD! The company went too a new accounting procedure that was miss understood so these 2 years must be re-worked. For the 9 months ending Sept 30th 2019 revenue was around $75 million and net income/share was .51. The run rate for 2019 was around $100 million and .65 net income/sh. The stated book at the end of the 3rd Q of 2019 was around $9/sh.
At present the company needs to refile 2018 and 2019 numbers and release 1st Q of 2020. "You could say that we are flying blind"!
Once everything is straightened out and the street sees the reality of the re-worked financials the stock should easily double or even triple from current levels!
LOOKS LIKE A JUICY TAKEOVER CANDIDATE!
Regardless of the financial errors there has not been one major military defense contractor that has terminated contracts with CVU! Actually the contracts are increasing. During the past few days CVU was awarded a total of $51 million of new and add-on contracts!
We like this opportunity and see huge returns for the patient investor that sees discounted value. We rate CVU with a speculative buy rating with 100-200% appreciation potential within 3-12 months.
The Pandemic Bull Market of 2020
Why we climb!
1.weakening Dollar-better for International trade
2.low interest rates- never a bad market with easy money
3.No inflation -zero chance of interest rate rise
4.Low corporate tax rate-- extremely bullish-many companies want to do business and open up shop in America
5. Super cheap cost of energy-thank you drillers in the USA!
6. Reduce regulation that usually Dems like too stick it to "American Corporations".
7.Bull markets climb a wall of worry
**** The only negative that would cause the market to stall and collapse is if "BIDEN" appeared to be winning the election. If BIDEN became President as mentioned earlier this market would become BIDEN-20 pandemic!
The current state of affairs in the USA!
America in 5 months or so will decide if it wants to continue the road towards greater economic growth and military dominance or just become part of the world order that the prior administration strive to be part of. (Obama/Biden)!
Trump is not politically correct and antagonizes many in various voting groups. The main stream media has lost what little minds that they have left. Of course the left favor senile Joe Biden as their pick for President of the US in upcoming election. (GOD help us!)
I know that Biden is the "new" black President. He, of course, is the tail of Obama because every chance he gets he makes sure to mention that he was part of the "tag" team!
Is the black caucus and other groups of color really falling for the Biden spin?
Please consider some facts that you may not want to believe or may even consider "fake" news.
1.The Crime Bill 0f 1994 which was extremely harmful to the black community and some believed it led to mass incarceration of black men! The bill was written by JOE BIDEN!
2. During the 1991 confirmation of Clarence Thomas for the Supreme Court, Biden questioned Anita Hill and many believed that his tone of questioning was harassment! He has never made a formal apology!
3.The latest BIDEN harassment inquiry has to do with a staffer of his 27 years ago when she alleged BIDEN sexually assaulted her (Tara Reid)!
The #metoomovement a Hollywood movement that was formed to empower women who claimed to have been sexually abused or harassed. Their mantra, " you must believe women"!
4. During 8/15/12 Biden was talking to black voters concerning voting for Romney and said, "Put y' all back in chains"!
5. August 26th 2015~ Biden referred to Obama, "as articulate, bright and CLEAN!" Can you imagine if Trump said that ??
6. Back in July 07,2006 Senator Biden said, " you cannot go to the 7-eleven or Dunkin Donuts unless you have an Indian accent! He was running for President for a change!
7. May 22, 2020 Biden talking to black voters and claims, " voters 'ain't Black' if they support Trump!
8. Best for last! June 5th 2020~ Biden says, " 10-15% OF AMERICANS ARE NOT VERY GOOD PEOPLE"!
I know according to the left leaning trash media, whether cable news networks, dying print media or the alphabet TV news shows that Trump is a (racist, homophobe ,misogynist, narcissist and xenophobe). If that is the case then what does that make Joe Biden?
Biden has been a government servant since 1973-2017 and this will be his 3rd time to run for President of this most "evil empire of the modern world".
He has yet to string 2 sentences together so it has been very difficult to figure out his vision for the USA for the next 4 years. All he ever does is say how horrible Trump has been for America.
If people really want Biden look out below! If you think the stock market was rough lately watch what happens if the Left take over! You can mark this on your calendar !
1. Dow will drop 10,000 points in short order!
2. Corporate tax rate will be increased back to 35% and jobs will be lost!
3. Capital gains on investments treated as ordinary income. There will be zero advantage to invest in America
4. Ban fracking so we become dependent on foreign oil.
5. Taxes will be raised because the Dems always believe in the nanny state and huge amounts of dough will be needed for the endless social programs, Free College, free healthcare, living wage and of course open borders.
We at www.saadvisory surely look forward to the actual debates that Biden vs Trump will participate in during the coming months.
Many American's have little clue about the many accomplishments that President Trump has completed during the past 3 1/2 years. The media has wanted him to fail since he first got elected. This does not even include all the false accusations that the liberal Dems have accused Trump of doing. The Russian hoax that cost the American tax payer $30 million represented by senile Mueller or of course the Impeachment trial that again wasted endless amounts of time and money.
Biden has been a public servant for 40 years and has really done nothing but enriched himself and his family. We have sympathy for his devastating family losses, but that does not qualify him to be President of the USA!
He appears frail and awkward. He has little ability to communicate 1-2 sentences together in order for a coherent thought or idea. JOE BIDEN IS A HOLOGRAM and will be eaten alive on the world stage by all of our adversaries!
Do yourself a favor and watch Michael Moore's latest Documentary on alternative energy sources. Of course twitter banned it for awhile because it did not suit the narrative
WE MAY BUY, SELL AND OR HOLD AT OUR OWN DISCRETION .We currently own shares in all stocks mentioned..
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