This public company within 1 month will raise the curtain and will you be surprised!
Bioresearch is an industry that offers a huge blue sky!
"Black Stocks Matter!"
We are not talking about that other misguided movement! We are talking about companies that de-list from filing with the SEC. This is usually done because the specific company cannot afford or justify the huge expense ( we call this over-regulation that has seriously curbed incubation of Capitalism in the USA). Other situations stem from a company that is just going out of business, Management resembles a team of worthless "dogs" or that management is changing & refocusing it's business operations and emerging as a "new" and healthy entity.
It is obvious that HemaCare's (hema) has this route in mind. This "new" story that we are presenting is very exciting and investor's should take note!
HemaCare is a leader in Cell and Tissue Collection, Processing and Cell Therapy, providing high-quality, controlled, consistent , customized primary cells and blood components derived from both healthy and disease state peripheral blood, bone marrow, and cord blood to research in cellular therapy and other health and biotech related organizations needed to ensure quality research outcomes that meet the unique needs of the scientific community for pre-clinical and clinical applications in biologics, immunotherapy, cell therapy assay development and medical devices.
phone number: 877 389 7115
We would take some time and visit their website- Very good with a stream of articles that relate to products that HEMA offers.
Some current news:
On or about March 4, 2015 HEMA sold their final "old" operations, namely, "Apheresis" for $3-$5 million and the closing date was early June 2015!
Note: Management has assured me that during Oct 2015 that year-end results for 2014 will be released and also the first 2 quarter's of 2015 will also be released. This will make them current and in the future Quarterly information will be released on a timely manner. There will be a time that they will also become fully reporting again. Management also assured me that timely press will also continue.
On or About July 30, 2015 CYRX (nasdaq) signed an agreement with HEMA for cryogenic logistic solutions. CYRX will provide cold chain logistics for a broad range of cell and tissue samples for use in advanced biomedical, cell therapy clinical trials and product commercialization .
Recently, HEMA announced that they will exhibit @SITC ( www.sitcancer.org) Nov 4-8 2015 in Maryland.
Interested investor could visit their site and review their informative "blog" as they discuss medical issues and how they are supplying needed products to research and development arms of noted companies in various medical research fields. One could assume that company's like GILD, NVS,RHHBY, SHPG, GSK & zillions of other research labs needing specifics that are available from HEMA's huge Donor list.
10.7 million shares fully diluted & outstanding
33% held by management- very bullish
30% held by owner's of over 5%
NO LONG TERM DEBT
NOL $7 million fed and $7 million state- very valuable as tax shelter and bonus for a suitor that might want to pick up this "cherry" at fire-sale prices.
Since they have not reported in 1 1/2 years we are unable to really see or assume their balance sheet. We do know that management informed us that they have no debt! They have cash and do not need any kind of cash infusion. We assume that HEMA could easily have in excess of $5 million, which would include the recent transaction and prior divestitures
From prior business model HEMA still has valuable clearance documental from the FDA.
We believe that the NAV comes in between .50-$1.00 and much of that could be cash. We only have around 1 month until the show starts.
From their only on going division from 2013 that revenues for only 8 moths reached $1.6 million and added 100 customers.
According to management upon the visit to their Annual meeting during late May 2015- that revenue for 2014 was around $4.5 million from this division & they added another 99 customers.
We believe that during the current year that revenue could surpass $9 million & they have ( May 2015) added another 34 customers.
Management informed us that much of their business has extremely high gross profit margins of 55% & since they have no debt payments--we could assume that they might show a profit during 2015.
As mentioned prior, management intends to become more pro-active with respect to timely press and angle for greater shareholder awareness once the Oct numbers are released for 2014 and 6 months for 2015!
HEMA is like the ultimate pilot fish feeding off herds of "whales" that need and pay top dollar for their proven products and professional delivery.
When you consider that HEMA's rev growth exploded for 2013 to 2014 by over 200% and from 2014 to estimated rev for 2015 grows by 100% -that regardless of profits that this company would sport a huge price premium from current levels. Based upon our estimates and a discussion with management that if they are successful in achieving projection for 2015 that HEMA should easily trade at 2X sales because of their huge growth rate and no debt and ample cash and attractive cash flow. At this time we only have a market cap of under $3 million-- tiny when you consider that most likely their cash on hand is much larger than their market cap!
If you like this investment idea it is in our opinion, waiting for the curtain to rise during Oct 2015 will cost you dearly. The true picture has already been painted for 2014 and the first 6 months of 2015 and if wait for the showing you may pay 200% above the current level. At 2X estimated sales for 2015 HEMA would sport a share price of at least $1.50/sh a far cry from current levels.
We will have 2014 year end numbers & interim 2015 numbers, we have a 4 day promotional show in early Nov 2015 , a more transparent desire by management towards investors and an industry that is void of recession and has huge almost endless pockets.
If you had the choice to be a pilot fish for an industry this is a money machine. HEMA could turn out to be a true ATM for the astute and risk oriented investor.
We rate HEMA with a strong speculative buy recommendation for short and long term appreciation potential. An additional bonus of course is that HEMA in my opinion looks like a very attractive buyout candidate- So pick you pot of gold!
Arrowhead Research ( ARWR-$6.95)
We first recommended ARWR in our April 1, 2015 email alert. (Please review if interested). Our recommended price was $7.34- the stock did move up into the $9+ area only to fall with the rest of the market of stocks over the past number of months.
The day of reckoning is upon us concerning a major change in the direction of ARWR share price in our opinion.
Arrow has a very important Analyst Day coming up in NYC(9-24-15) They intend to present their current results on their Hepatitis B candidate ARC-520.
Management will discuss the results of the Hep-ARC 2001 Phase 2A study conducted in 9 chimpanzees chronically infected with Hepatitis B virus.
Bottom-line: ARWR needs BIG money & they need a game changer so a deep pocket comes along & gives them 1 to 2 Billion for future royalties on developed products using their RNAi delivery system.
FOOD FOR THOUGHT: 1. Why have a dog and pony show and you are the only dog and pony that will be on stage? Are you going to announce terrible news?
2. Around 1 month ago ARWR filed a CT form with the SEC. This document states something that is not for the public to see until management decides to present. We have seen this before in the Biotech space where suitors propose an infusion of cash dependent upon certain results. More food for thought!
3. Novartis (NVS) and Gilead (GILD) have very close ties with ARWR (very close-- just look at the past deal NVS made with ARWR a few months ago.)
4. Gilead (GILD) last week just raised $10 billion via bond offering and the street believes that they will use it as a war chest for an acquisition or joint venture.
5. There are around 60 million shares outstanding & the short position is a Godzilla amount of 15 million shares.
6. If the perfect storm develops as a Monster then the stock jumps huge because of the results and some major either buys the company outright or injects a few billion - the COW jumps over to MOON and most likely will over shoot because the shorts cannot cover.
We either have a $2.50 or a $25-$50 dollar stock within days of this meeting. Choose you poison!
I think something big is going to happen here. This RNAi Delivery system has legs and these legs are going to take us to the bank!
You just have to hang on to the quality and average down gingerly. The one's with heavy debt are most likely toast. HK, SD & MHR have issues that are not going to be fixed in this environment very easily. OAS, WLL, SN and CLR will survive. Some penny issues cazff and mauxf can make if a catalyst comes along. I think WRES can survive as well.
MHR- could pull a rabbit out of someone's hat and prosper- current .50 and NASDAQ is crowing about de-listing- so that mean reverse split! danger
Favorite 3 oils- AXAS, SDCJF (1 fav) and mqlxf (2 fav) I think NOG and CPE are survival candidates.
Go and read the presentations on both sdcjf and mqlxf- both management teams are stellar and will prosper and grow even in this terrible oil glut created by our worthless friends the Saudi's
I think cazff is going to get a refinancing because their acreage is "cherry- cherry" and I think mauxf will most likely be sold-- they have great acreage, but Nigeria is a sleazy country and everyone there is a bigger sleaze than the next guy!
SDCJF is the buy for patient investors- We first recommended sdcjf @ .15 around 5 years ago or so when they produced only 800 boepd now the stock is .20 and they produce 8000 boepd. Patience will pay off . Management is an A-Team.
Are you bored yet?
vsym--.0049 read the most recent press release- I think we will have a merger & acquisition very soon. This stock can make a huge move on the new catalyst.
MIFI-- WOW- recommended it in the high $4's and now floating around the mid $2's --still like it and have averaged down a bit , but still slaughtered-- It has killed me like the oils.. I think once we get past this 3rd Q and their recent acquisition closes that we will see some legs. The management team here is very seasoned and very capable to make this into a multi-bagger.
How we feel about things!
The Fed- Will they raise or continue to sit on there hands?
In our opinion, We believe that the FED will not raise! There are may reasons why they will wait until Dec 2015 for this monumental .25% increase.
1. There is no inflation. There is nowhere in sight this 2% target that is a liftoff element.
2. Even though some are crowing about this 5.1% unemployment rate-- the real number is much larger because it does take into account part time and does not take into account people that have given up. How do you have full employment when there are 95 million out of work and 45 million on welfare and or food stamps.
3. The strong dollar is not a very helpful ingredient for our exporters. The strong dollar hurts a lot of industries that are already depressed.
4. China's recent devalue and interest rate drop just indicates how soft the overall world economy really is at present and an interest rate hike of only 1/4% can and possibly cause some unforeseen consequences especially in South Korea, Vietnam, Japan and Indonesia.
5. With Canada in recession and Australia getting ready to lower rates even more and South America and Europe just float above water- one just cannot believe that Yellen will flip the switch.
6. Another most troubling situation is the migration of maybe millions of Syrians and Iraqi citizens fleeing from failed US and Allies policy's into European Nations causing severe financial stress.
7. Consumer optimism fell sharply in August, the University of Michigan preliminary sentiment index.
8.Overall, with a rising dollar, slumping commodity prices and a slowing Chinese economy have sent stock prices down and darkened prospects for emerging-market economies. Clearly, both growth and inflation could turn out lower than the Fed expects and for that reason the rate hike is on HOLD!
9. Both the World Bank and International Monetary Fund have said the FED should delay raising rates until the global economy is more stable!(you think!)
The Nuke Deal with Iran: May very well go down in History as the worse deal in 100 years. We had them by the throat and now they have us by the throat. Does it sound familiar ? You can keep your doctor and your medical insurance premiums will not rise. We all know the results. Remember that witch Pelosi, " you have to pass the Bill - so we can read it!"
We are not that lucky because we cannot read the side deals . The best is that the Iranian's get too police themselves!! Obama sold Israel out and the world. Can you imagine that they get $150 Billion dollars-- one can only imagine how much Hezbollah, Hamas, Houthis in Yemen, President Assad in Syria and countless other terrorist groups will receive?
The massive military build up that Iran will be entitled too because of this nightmare agreement that was made with John Kerry as lead negotiator . We got nothing- forget the 4 held in Iran. Forget the $42 billion that Iran owes America for other terrorist acts during the past 30 years. Forget all the soldier's that died because of Iran producing IED's in Iraq. This administration is the horror of horrors!
Lastly, North korea was giving fuel, money , food and removal of sanctions during the Clinton and Bush years in order to stop them from getting the bomb!! It sure worked.. Iran will cheat and we will have gained nothing except more death and destruction from this regime. The Dems that have signed off on this deal must not have soul's because their children will pay the heavy price of Obama's appeasement .
Our Supreme leader visited Alaska because of the "baked Alaska" garbage that is being stamped into the weak minds of mush! Mr. Moore, co- founder and former leader of Greenpeace calls "Global Warming " hocus pocus"! Our leader visited a great Glacier during the summer and crowed that the "damn" thing was melting. This great glacier in Glacier Bay has been retreating since 1750 according to records.
According to the National Park Service, Glacier Bay was mostly ice-free by 1900! All this happened long before "AL Gore" blamed human and animal emissions of greenhouse gases, including carbon dioxide, could have had any impact.
This powerful convergence of interests ignores the fact that carbon dioxide is essential for all life on Earth, that plants could use a lot more of it, and that the real threat is a cooling of the climate, not the slight warming that has occurred over the past 300 years.
AS a snow skier addict I would greatly appreciate global cooling~ bring it on!
PS: OBAMA IS WORRIED ABOUT GLOBAL WARMING YOU WILL NOT HAVE TO WAIT VERY LONG WHEN IRAN CREATES THE REAL THING! THANK YOU
PS-2: Here is more Global warming "crap" coming from the State of California--You have to read this - "The most morally destructive product in California these days is green government. Take the 33% renewable electricity mandate. Since 2011 solar energy has increased more than 10-fold while wind has nearly doubled. But during this period electricity rates have jumped 2.18 cent per kilowatt hour- four times the National average. The cap-and-trade program has also hurt manufacturing, power plants and oil refiners, which are required to purchase permits to emit carbon!
One more "rant!"
It is really sad that there is this specific religion that continues to drain the blood out of this world not only in human cost, but now because of "total" greed has decided to flood the world with cheap oil so they can kill this viable industry worldwide! They kill the innocent with weapons- the women and children- they have forced an out-of-control migration into Europe that promises to change the very fabric of these helpless nations. Europe always seems to let the tail wag the head. Obama has similar traits. ( only 500 days left of this horror)
The floodgates are fully opened & the world has this huge glut of Oil ( not too mention that Iran will be increasing their production by 1 million barrels within 6 months of the sanction being lifted).
The herd ( Joe Blow & Mary Jane) of course think that having low gasoline prices is manna from heaven, but in reality it is a gift from "hell!"
The Saudi's, our friends, are really know better than the one's carrying weapons that have triggers. Just look around the world today and see how so many countries that depend upon fossil fuels for a huge part of their annual revenue have been devastated by this severe price decline from $100/ barrel to $45/barrel.
We have Algeria, Nigeria and Venezuela ( members of OPEC) nearing financial collapse. We have the rest of OPEC needing Oil near $100 for a sound budget - yet Saudi Arabia does not give a "damn" about anything except themselves.
These people are just plain evil!! Most of the migration from Syria and Iraq are Muslim and not one Middle East country except for Jordan has taken any of these people. Sure they have thrown money at the problem, but in reality they want nothing to do with anything or anybody except to cause financial and human misery worldwide.
Author- Brad Thor-- His spy series are a total thrill ride.
Author-Hampton Sides- Real life drama of adventure and hardship and the spirit of man to live. His 2 books- "In the Kingdom of Ice" & Ghost Soldiers"
Another favorite topic of mine- "The Clintons"
Author-Peter Schweizer- Clinton Cash- A true sleaze machine at work.
Author- Roger Stone- The Clinton's War on Women- release date Oct 13, 2015-- this book is going to raise the roof on the sleazy tag team- "The Clinton's"
Finally, I actual like Joe Biden-- I think he is honest and surely deserves the Dem nomination instead of the Clinton person.
This letter was just too long and by now most will either hate me or love me! Have a great day!
We have not been paid by any of the listed investments within this newsletter. We may buy, sell and or hold @ our own discretion. If you don't understand 'risk" -look it up on-line.
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Happy Investing and have a Happy Halloween