In my ongoing quest for short-term trading opportunities, I have come across some services that specialize in "reverse merger" opportunities. A reverse merger stock is a stock that becomes public by buying a "shell" public company which is essentially going or already out of business. It is a quick and dirty way for a start-up to go public.
Not surprisingly, this back-door way around traditional IPO's attracts some "substance-challenged" companies. But sometimes it attracts a gem that is just in too big a hurry to get their story out and get funding to go the traditional IPO route. At least two newsletters I've seen recommend reverse merger stocks, as a way of getting in early on unknown, very small cap stocks with potentially great upside. Coincidentally, while looking for biotech stocks that could benefit from bird flu, I found a company NANOVIRICIDES INC (NNVC.pk) which looks like a great candidate for testing out the reverse merger theory. Additionally, if this company gets some publicity, it should trend up every time there's a bird flu media-scare. (The term "nano" has probably exhausted its hype-potential, so we're not counting on any additional value from the nano-name.)
One of my trading partners, Ilene, who has a degree in Pathology, has done some preliminary research on NNVC and has found the science to have some significant potential and has been very impressed with the background of the people joining the advisory board (see links below), as they not only seem highly qualified but in some cases are among the leading scientists in the field. This does not seem to be the typical penny stock, nor the typical reverse merger company.
We are buying a little bit of this stock for long-term holding, even though it is clear that an eleven-cent pink sheet stock is highly speculative and there's no guarantee that any biotech, much less this one, is ever going to appreciate in value or become profitable.
In the spirit of "do your own due diligence," I am providing the the following information on NNVC and highly recommend a visit to their web site before jumping into the ring with this one. The bet here is risking a total loss of your investment against a return of thousands of percent. Worth a roll of the dice? You decide.
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Vietnam Invites NanoViricides to Play Role in Battle against Bird Flu
Monday August 22, 11:01 am ET
NEW YORK--(BUSINESS WIRE)--Aug. 22, 2005--NanoViricides, Inc. (Pink Sheets:NNVC - News), announced today that the Government of Vietnam's National Institute of Hygiene and Epidemiology ("NIHE"), Vietnam's leading institute for the surveillance, control and prevention of infectious diseases, extended an invitation to the Company to help in the battle against bird flu.
The Company will meet with the key scientific persons in this governmental agency as part of the Country's effort to prepare adequately for potential outbreaks of this highly contagious and fatal disease. "NanoViricides has an approach that appears capable of making true viricides...you appear to have a unique technology...the potential for this approach is immense and important, as any outbreaks can be curtailed before they reach epidemic proportions," noted Dr. Nguyen Tran Hien, Director of NIHE. "We are interested in discussing further the potential of developing NanoViricides against the bird flu virus strains."
Dr. Anil Diwan, President of NanoViricides, added, "Our technology has elicited the notice of the senior science community in Vietnam, a country facing an uphill battle against this deadly epidemic. They are proactive in seeking out solutions, and have the support of the world to find ways to ensure that this does not become a pandemic issue. We are honored to join them in this fight."
"The Company is excited to field these commercial opportunities," noted Leo Ehrlich, CFO. "Joint venture work offers a potential for revenues and goal oriented research that advances the Company's core business and operational purpose against specific viral enemies. We will begin a relationship with Vietnam and the surrounding nations that will allow us to advance our technology and address specific issues facing the nations of the world."
About NanoViricides
NanoViricides, Inc. is a development stage company that is creating special purpose nanomaterials for viral therapy. NanoViricides, Inc. has exclusive license in perpetuity for technologies developed by Theracour Pharma for the five virus types: HIV, HCV, Herpes, Asian (bird) flu and Influenza. A NanoViricide(TM) is a nanoparticle that contains an encapsulated active pharmaceutical ingredient and targets it to a specific type of virus. When a NanoViricide(TM) drug particle enters the patient's blood stream, it attacks and immobilizes circulating virus particles. Once this is done, the active pharmaceutical ingredient is injected into the virus by the NanoViricide(TM) particle, destroying it. The company plans to develop novel NanoViricide(TM) drugs first against HIV, and anticipates that it will license the products to major pharmaceutical companies.
This press release contains forward-looking statements which reflect the Company's current expectation regarding future events. Forward-looking statements involve risks and uncertainties. Actual events could differ materially and substantially from those projected herein and depend on a number of factors including the success of the Company's research and development strategy, the availability of adequate financing, the successful and timely completion of clinical studies and the uncertainties related to the regulatory process.
Dr. John Rossi, Holder of 14 Key Patents, and Author of over 275 Scientific Articles, Joins NanoViricides, Inc. Scientific Advisory Board
Thursday July 14, 9:33 am ET
"Widely Regarded as a World Leader in Clinical Research for the Treatment of HIV/AIDS and in the Development of Therapeutic Applications of RNA Interference"
NEW YORK--(BUSINESS WIRE)--July 14, 2005-- NanoViricides, Inc. (Pink Sheets:NNVC - News), announced today that Dr. John Rossi, Chairman and Professor, Division of Molecular Biology, Beckman Research Institute and Dean, Graduate School of Biological Sciences, City of Hope National Medical Center, Duarte, CA - http://www.cityofhope.org/gradschool/faculty/jrossi.asp - has joined the NanoViricides, Inc. Scientific Advisory Board.
City of Hope is a Comprehensive Cancer Center dedicated to the prevention and cure of cancer, HIV/AIDS, diabetes, and other life-threatening diseases.
"Dr. Rossi is a wonderful addition to our Scientific Advisory Board. He brings almost twenty five years of basic HIV research experience to our company. He is on the editorial boards of numerous science journals including Antisense Research and Development, Gene Therapy and Molecular Biology and Molecular Therapy, and has extensive experience in many critical areas that will help us develop true HIV killing nanomachines," said Eugene Seymour, MD, Chief Executive Officer of NanoViricides, Inc.
"Dr. Rossi has great expertise in the clinical aspects as well as in the HIV genome silencing aspects which are areas of special interest to NanoViricides. His active involvement as our scientific advisor will accelerate our development programs particularly for our second generation anti-HIV drugs and other nanoviricides," said Dr. Diwan, President of NanoViricides, Inc. and inventor of the underlying technology.
In addition to his responsibilities at the City of Hope, he is also Adjunct Professor, Division of Biomedical Sciences, University of California, Riverside, CA, as well as Adjunct Professor, Department of Biochemistry and Microbiology, Loma Linda University, CA.
Dr. Rossi received his PhD in microbial genetics from the University of Connecticut. His post-doctoral fellowship was at Brown University in Providence, RI.
THE NANOTECHNOLOGY REVOLUTION IN BIOPHARMACEUTICS
A New Era in Targeted Anti-Viral Therapeutics
Imagine having a nano-scale molecularly engineered "guided missile", about the size of a few billionth of a meter, that courses through the blood-stream, seeks its target e.g. a virus particle, attaches itself to the target, and then destroys the target completely.
We believe that nanoviricides are the next great advance in medicine. It is possible that some HIV patients may be "cured" by the drugs developed at NanoViricides Inc. We hope that with further knowledge and new advancements in medicine, many viral diseases will be curable. We hope to spearhead these efforts.
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Our President, Dr. Anil Diwan, is a 'Business of Technology' editor to Pi-Tech, the magazine launched at the Global Indian Institute of Technology Alumni Conference in 2005 (Pan - IIT 2005).
Featured articles written and edited by Dr. Diwan
Indian Institute of Technology is one of the premier schools in the world and has been featured on CBS.
NanoViricides Retains Auditor in Preparation of Filing Form 10-SB
Thursday August 4, 11:14 am ET
NEW YORK--(BUSINESS WIRE)--Aug. 4, 2005--NanoViricides, Inc. (Pink Sheets:NNVC - News; the "Company"), announced today that it had retained Bloom & Co., LLP of Hempstead, New York as its independent auditors, in anticipation of filing Form 10-SB and being quoted on the OTC bulletin board quotation system.
Commenting upon the retention, Leo Ehrlich, NanoViricides' Chief Financial Officer stated, "this is a very exciting time for NanoViricides. Retaining PCAOB registered auditors such as Bloom & Company will enable the Company to complete its first ever audit, an important step in our goal of becoming a reporting company. Upon completion of the Company's audited financial statements, we anticipate immediately filing a Form 10-SB to commence reporting obligations with the Securities and Exchange Commission. Becoming a reporting company with the objective of having our stock quoted on the OTC Bulletin Board is a positive step for the company and for our shareholders."
Dr. Cy Stein, Renowned Inventor, Holder of key Patents, Expert in Antisense and RNA, Joins Nanoviricides, Inc.
Monday July 11, 12:11 pm ET
NEW YORK--(BUSINESS WIRE)--July 11, 2005--Nanoviricides, Inc. (Pink Sheets:NNVC - News), announced today that Professor Cy Stein, MD, Head of Medical Genitourinary Oncology and Professor of Medicine, Urology and Molecular Pharmacology at the Albert Einstein College of Medicine, New York and a recognized innovator in the development of drugs based on antisense and RNA interference, has joined NanoViricides' Scientific Advisory Board.
"We are delighted to have Dr. Stein join as a member of NanoViricides' Scientific Advisory Board. We look forward to working closely with him to fully develop the potential of our nanoviricide technology," said Dr. Diwan, President of NanoViricides.
Professor Stein is a pioneer in the anti-sense DNA field and holds a number of key patents. He was a co-developer of Genta Inc.'s Genasense antisense drug that showed efficacy but needs further work. Prof. Stein is co-editor of the journal Oligonucleotides (formerly Antisense and Nucleic Acid Drug Development) and has published over 150 papers in the field.
Prof. Stein is a medical doctor and has a PhD in chemistry. He is an oncologist and was trained at the New York Hospital/Cornell Medical Center and the National Institutes of Health. He was a professor at the College of Physicians and Surgeons at Columbia University for 13 years prior to taking up the chair at the Albert Einstein College.
Prof. Stein explained, "The possibility exists that Dr. Diwan has developed the 'elusive chemical virus' that scientists have been talking about, that is, a chemical nanomaterial, that attacks a virus specifically just like a virus attacks a cell. A virus attacks cells specifically. A nanoviricide, built strictly at the chemical level, does the same, but attacks a virus. It is inspired by how viruses work, and therefore shows a great promise."
"Dr. Stein has strong expertise in the anti-sense approach against the HIV genome. This is of great interest to NanoViricides. His active involvement as our scientific advisor will accelerate our development programs especially for our second generation anti-HIV drugs and other nanoviricides," said Dr. Diwan, President of NanoViricides, Inc. and inventor of the underlying technology.
Tuesday, August 30, 2005
Friday, August 26, 2005
IMNY
Very late on Friday afternoon it was disclosed the the CEO of I-Many Inc (IMNY) purchased $112K worth of IMNY shares on the open market on Thursday. He paid $1.55/share. This was the 9th purchase of IMNY shares by insiders since August 17th. These insider purchases were made between a low of $1.38 and as high as $1.55.
I bought a decent size chunk of IMNY just before the close, paying $1.49 and $1.50. The stock is trading in the after-market now at bid $1.52, ask $1.57. Last trade was $1.54 and 145K shares have traded on Friday.
I could have banked an easy 3%, but instead am holding over the weekend. The stock traded as high as $1.87 earlier this summer.
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I bought a decent size chunk of IMNY just before the close, paying $1.49 and $1.50. The stock is trading in the after-market now at bid $1.52, ask $1.57. Last trade was $1.54 and 145K shares have traded on Friday.
I could have banked an easy 3%, but instead am holding over the weekend. The stock traded as high as $1.87 earlier this summer.
A
Thursday, August 25, 2005
NVAX pops 45%
August 24th: Director buys 50K shares at $0.97, Some of us follow, buying in at his price $0.97.
August 25th: NVAX announces positive preclincal on its novel vaccine for pandemic influenzia; study shows avian flu vaccine effective.
Stock pops 45%.
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August 25th: NVAX announces positive preclincal on its novel vaccine for pandemic influenzia; study shows avian flu vaccine effective.
Stock pops 45%.
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Saturday, August 20, 2005
A Bully with a Gun
This morning I set out at 8:30AM for a hair appointment on the other side of town. Traffic was light and I found myself behind two motorcycles at a stop sign, awaiting traffic to clear to enter a divided highway. Although the speed limit is 55 on this divided highway, vehicles typically travel between 60-70MPH.
The first motorcycle found a hole in the traffic and took off, leaving me waiting now behind one motorcycle. Traffic was heavy for 8:30AM on a Saturday and it took awhile for traffic to clear. Finally, the motorcycle in front of me took off and I followed into the opening in the traffic flow. The motorcycle went right through the medium intersection and into the left lane. I tried to follow, but the motorcycle was not picking up speed. Conscious of fast moving traffic coming up behind me, I checked the right lane, saw it was open and crossed over into it and picked up speed, quickly reaching 60MPH while passing the motorcycle on the right while he was still struggling to pick up speed in the left lane.
Two seconds later, a police vehicle was on my tail, signaling me to pull over. The officer slowly and deliberately got out of his vehicle and strolled over to the passenger side of my car. I rolled down the passenger side window. His first words were, "You think BMW's don't have to follow the traffic rules like everyone else?" Then noting that I had South Carolina plates on my car, he also said, "What are you doing in Washington, we don't drive like that in here."
I asked him what I had done wrong. He asked for my drivers license and registration. He then went on a tirade, telling me how I had committed multiple infractions and wanting again to know what I was doing in this state and how long I would be here. I again asked about what I had done wrong. He finally says I followed the motorcycle into the intersection without stopping then cut over to the right lane to pass him. Before I had a time to respond, he took my documents back to his car.
He comes back a few minutes later with a $510 infraction for, "Negligent Driving." Again, he comments on my being from out of state and wants to know how long I will be here. I am evasive at this point, not knowing what else he is up to. In retrospect, it seems that he expects me to not show up to contest this ticket. I am sure "Negligent Driving" is worth a lot of brownie points back at the station. I am also certain that he will never afford to drive a BMW and I am being penalized for his own failures and station in life. This was personal.
I will lose more money in not trading on the court date then the ticket and an even doubling of my insurance premium would have cost me. I don't mind paying for traffic infractions, I've never contested one before, just sent in a check, guilty. But this one is different. I was singled out because I was from out of state and because I am driving an expensive vehicle.
I suspect the judge will be driving one too.
A
The first motorcycle found a hole in the traffic and took off, leaving me waiting now behind one motorcycle. Traffic was heavy for 8:30AM on a Saturday and it took awhile for traffic to clear. Finally, the motorcycle in front of me took off and I followed into the opening in the traffic flow. The motorcycle went right through the medium intersection and into the left lane. I tried to follow, but the motorcycle was not picking up speed. Conscious of fast moving traffic coming up behind me, I checked the right lane, saw it was open and crossed over into it and picked up speed, quickly reaching 60MPH while passing the motorcycle on the right while he was still struggling to pick up speed in the left lane.
Two seconds later, a police vehicle was on my tail, signaling me to pull over. The officer slowly and deliberately got out of his vehicle and strolled over to the passenger side of my car. I rolled down the passenger side window. His first words were, "You think BMW's don't have to follow the traffic rules like everyone else?" Then noting that I had South Carolina plates on my car, he also said, "What are you doing in Washington, we don't drive like that in here."
I asked him what I had done wrong. He asked for my drivers license and registration. He then went on a tirade, telling me how I had committed multiple infractions and wanting again to know what I was doing in this state and how long I would be here. I again asked about what I had done wrong. He finally says I followed the motorcycle into the intersection without stopping then cut over to the right lane to pass him. Before I had a time to respond, he took my documents back to his car.
He comes back a few minutes later with a $510 infraction for, "Negligent Driving." Again, he comments on my being from out of state and wants to know how long I will be here. I am evasive at this point, not knowing what else he is up to. In retrospect, it seems that he expects me to not show up to contest this ticket. I am sure "Negligent Driving" is worth a lot of brownie points back at the station. I am also certain that he will never afford to drive a BMW and I am being penalized for his own failures and station in life. This was personal.
I will lose more money in not trading on the court date then the ticket and an even doubling of my insurance premium would have cost me. I don't mind paying for traffic infractions, I've never contested one before, just sent in a check, guilty. But this one is different. I was singled out because I was from out of state and because I am driving an expensive vehicle.
I suspect the judge will be driving one too.
A
Thursday, August 18, 2005
And They Keep On Coming
More I-Buys today:
SFE --> CEO Buys $212K @ $1.28;
ADSX --> CEO Buys $57K @ $2.85;
Bought a bunch of both, out of half already, letting the other half run, will probably be out of both by the close unless there are follow-on I-buys by other officers and/or directors.
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SFE --> CEO Buys $212K @ $1.28;
ADSX --> CEO Buys $57K @ $2.85;
Bought a bunch of both, out of half already, letting the other half run, will probably be out of both by the close unless there are follow-on I-buys by other officers and/or directors.
A
Monday, August 15, 2005
DSCO
Just in case she knows what she is talking about, I'm raising Ilene's commenton DSCO to my previous blog to a Blog of her very own:
At 8:33 AM, ilene said...
Allan, although you think DSCO doesn't go with anything you do (since you have forgotten all the insider buying from months ago), I think it's a great buy here on what looks to me like an overreaction to fda delays. - Ilene
At 8:33 AM, ilene said...
Allan, although you think DSCO doesn't go with anything you do (since you have forgotten all the insider buying from months ago), I think it's a great buy here on what looks to me like an overreaction to fda delays. - Ilene
Friday, August 12, 2005
OSTK
August 11: President/Director buys 20K shares, $1.3M worth @ $41.96 avg price. Stock closes at $43.75 for the day.
August 12: OSTK trading at $47.85, up 10% from previous close.
THEEEEEEEEEEY'RE BACK!
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August 12: OSTK trading at $47.85, up 10% from previous close.
THEEEEEEEEEEY'RE BACK!
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One That Got Away
Here's an I-Buy that I didn't take, it was a private placement by Conceptus (CPTS) a few days ago. A group of insiders including the CEO and CFO bought over $500,000 worth of stock at $8.00/share. Three days later the stock is trading at $10.00 for a nice 25% pop. As set out in my previous blog, the opportunities are starting to "pop-up" on my screens.
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Thursday, August 11, 2005
Theeeeeey're Back
With July earnings reporting over, the insiders are back and back with a vengence. That's where I've been the past couple of weeks. If you're willing to try this trading methodolog on for size, August might be the month to get your feet wet.
Real time example: Last night after the close an SEC filing revealed that a Senior VP of Synaptics (SYNA) purchased $260K worth of SYNA at $15.29 per share. Synaptics has fallen 33% in the past few weeks, mostly due to reports of losing their best customer, Apple Computer, representing a signficant portion of their business. This Insider wasn't as gloomy on the stock as the selling shareholders and stepped up to the plate with a quarter million dollars of his own money. This morning, Thursday, SYNA opened at $15.15 a share, up only 10 cents from Wednesday's close. Not a bad bet. SYNA has run to a high this morning of $15.85, a "pop" of 5%.
This is what we're looking for and the time seems right for paying attention to insider opportunities, right here, right now.
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Real time example: Last night after the close an SEC filing revealed that a Senior VP of Synaptics (SYNA) purchased $260K worth of SYNA at $15.29 per share. Synaptics has fallen 33% in the past few weeks, mostly due to reports of losing their best customer, Apple Computer, representing a signficant portion of their business. This Insider wasn't as gloomy on the stock as the selling shareholders and stepped up to the plate with a quarter million dollars of his own money. This morning, Thursday, SYNA opened at $15.15 a share, up only 10 cents from Wednesday's close. Not a bad bet. SYNA has run to a high this morning of $15.85, a "pop" of 5%.
This is what we're looking for and the time seems right for paying attention to insider opportunities, right here, right now.
A
Tuesday, August 02, 2005
The Speed of Change, Squared.
In the comments section of my "Just Say No" blog, Greg asks and suggests in part as follows:
"Unless you are traveling frequently, why not use desk top PC's? They seem to be more reliable as well as a bit cheaper...........Maybe you just need to take a vacation."
Today I leave with Ilene for five days in Southern California. We will be taking our business with us, in the form of two notebooks and reservations at a hotel with a very reliable broadband connection. Yes, it is a vacation, of sorts, but if we just have average trading days on Thursday and Friday, the trip will be paid for and we should return home with still larger account balances then we left. That's why we run our business on notebooks and that's why vacations are so much damn fun these past few years. At 1:00 PT we are finished "working" and ready to engage ourselves with local hospitality.
Mobility, redundant systems and technology. Big, beautiful everchanging, technology, challenging our thinking and approaches to trading. New ideas fall with the gentle rain on a Denver walk after dinner, or sail in on the cool ocean breeze on a midnight stroll outside our hotel in Santa Monica. New friends serving dessert in their home atop Malibu as the day fades effortlessly across the quiet beach below. Who knows how ideas take hold, where they come from, why they appear at all?
Trading gets stale if you let it. Sometimes all it takes is a new place, an open mind and the will to succeed; where energy equals the speed of change, squared.
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"Unless you are traveling frequently, why not use desk top PC's? They seem to be more reliable as well as a bit cheaper...........Maybe you just need to take a vacation."
Today I leave with Ilene for five days in Southern California. We will be taking our business with us, in the form of two notebooks and reservations at a hotel with a very reliable broadband connection. Yes, it is a vacation, of sorts, but if we just have average trading days on Thursday and Friday, the trip will be paid for and we should return home with still larger account balances then we left. That's why we run our business on notebooks and that's why vacations are so much damn fun these past few years. At 1:00 PT we are finished "working" and ready to engage ourselves with local hospitality.
Mobility, redundant systems and technology. Big, beautiful everchanging, technology, challenging our thinking and approaches to trading. New ideas fall with the gentle rain on a Denver walk after dinner, or sail in on the cool ocean breeze on a midnight stroll outside our hotel in Santa Monica. New friends serving dessert in their home atop Malibu as the day fades effortlessly across the quiet beach below. Who knows how ideas take hold, where they come from, why they appear at all?
Trading gets stale if you let it. Sometimes all it takes is a new place, an open mind and the will to succeed; where energy equals the speed of change, squared.
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