Tuesday, November 28, 2006

Two New Ideas

APNS

Applied NeuroSolutions - A very small cap biotechnology company which today announced a deal with Lilly to develop therapeutics to treat Alzheimer's. This $38MM company is trading on the Bulletin Board for about 40 cents. This is a pretty nice deal for such a small company and may provide a speculative opportunity not unlike NNVC at 10 cents a share.

ROY

International Royalty Corporation is a diversified mine royalty company with royalty interests in nickel, copper, zinc, gold, diamonds, coal and uranium. Royalty companies are generally less risky then operating companies, so you get exposure to the sector without a lot of the risk. IRC's profit margins are among the highest in the industry, but that is not yet reflected in the multiples of future earnings inherent in the stock's price. According to J. Taylor who follows ROY, the company's stock price, if comparable to other royalty companies, should be 2X to 3X it's current price. This is both an inflation play, a precious and industrial metals play, an uranium play and a value play.

I have positions in both these ideas.

A

7 comments:

Anonymous said...

Hi Allan,

Thanks for the tips. Why do you think the big downturn on APNS after today's announcement?

Best,

Jon

Allan said...

Why do you think the big downturn on APNS after today's announcement?

Haven't a clue, but it seems to be firming here...if APNS can take out today's highs, that's about a 30% gain from current levels. Seems like one of those times to roll the dice.

A

Anonymous said...

ALLAN, I WILL ROLL THEM....
THANKS FOR ALL YOUR IDEAS
AA

David M Gordon / The Deipnosophist said...

Hmm, interesting ideas, each. Thank you, Allan. Say, btw, do you follow Consulier Engineering/CSLR? Any comments, if so?

Allan said...

David--CSLR is a new name to me, I'll take a look though.

A

Anonymous said...

Allan, anyone
How/where do you get the 1 YR or 3 MTH chart for APNS.OB??

Anonymous said...

scottrade