NNVC, an old favorite of this blog, traded as low as $0.60 at the end of December. We bought this stock at 10 cents, rode it up to $3.75 last March, and have watched it slowly consolidate, retrace, crash, burn, and endure the ultimate indignity, tax loss selling, all while sitting patiently on our remaining shares (yes, I sold some above $3, damn, windfalls happen).
That said, I've been buying again, from $0.80 about a week ago. Why? Price and Volume. A month of firming prices on increasing volume after such a horrendous six month decline suggests at least a counter-trend rally, and at most, a revisit to old highs. Although not the same no-brainer as buying at 10 cents, I like the risk:reward here, looking for a move above $1.00 (10% higher) in the days ahead.
A
9 comments:
Can anyone tell me the stock being hyped in this letter related to "molecular super-conversion technology" or either of the other three Phase 1 stocks referred to near the bottom of the letter.? Anyone subscribe to this newsletter?
Thanks
Greg Reiman
(see long letter below)
First Phase 1 Opportunity:
Why Big Oil, China and India are Scrambling to Use
“Molecular Super-Conversion Technology” (MSCTEK)
For months, Rob Fannon’s been tracking a small company with a fascinating new technology...
The Federal Institute of Technology in Zurich recently named it “one of the key technologies of the 21st century.”
We call it “molecular super-conversion,” or MSCTEK.
The technical name, unless you’re a molecular physicist – doesn’t make much sense.
This technology is, truly – no exaggeration – one-of-a-kind.
(The company has 146 patents, with 94 pending. Plus, 13 foreign patents with 51 pending.)
What is “molecular super-conversion technology?”
It's the brainchild of molecular physicist Jon Gerhard, who realized more than a decade ago that...
...if you could isolate and understand molecular reactions on the atomic level... then you could, theoretically, harness that energy with such control and precision, that you create whatever you want...
That’s a God-like power... and it is – in essence – what “super-conversion” technology makes possible.
So, in 2003, Gerhard finally wrote the seminal paper on “molecular super-conversion technology” that created the field – and was formally recognized by the American Chemical Society.
According to Cambridge University, "it's one of the most important technologies we have, yet most people are unaware of its wide-ranging significance."
Today, one small US company has rights to Gerhard’s “super-conversion technology.” (Of course, Gerhard is now a key member of this company's R&D team.)
And they’re taking full advantage it... doing things no one thought possible.
For example:
Gerhard’s “molecular super-conversion technology” can turn low-grade gasoline (Octane 87) into premium (Octane 93). With 50 million gallons of premium gasoline sold a day, this represents a $3.5 billion market.
Gerhard’s technology can convert heavy, bottom-of-the-barrel oil into light, sweet crude (a $20-$25 price differential). That’s why Gerhard recently met with executives from one of the largest oil companies in the world (a $150 billion+ Big Oil giant) at a large refinery. They were testing the technology. And it was a success. Look for upcoming deals with Big Oil.
Gerhard’s company inked a deal with a large Chinese coal company. Why? Because molecular super-conversion technology can turn coal – which is highly polluting and inefficient – into oil.
The Assam Region of northeastern India is rich in coal and the Government of India wants to turn it into oil. That’s why one of the largest state-owned Indian energy companies has begun to work out a deal with Gerhard’s company to use its molecular super-conversion technology.
Again, I can’t go into too much detail about this company here. But you can probably see how it’s disrupting the oil industry – in everything from gasoline refining to purifying the untapped oil left in the world.
Believe it or not, the energy industry represents the beginning of the disruption...
Big Pharma... even cosmetics...
It has the potential to influence the creation of 10 trillion dollars worth of industrial products... cars, chemicals... even glue.
That's why MIT says it "has the potential to capsize the established order"...
...and should expand exponentially in the next several years. Take a look at the projection to your right, courtesy of BCC research, a tech sector research outfit.
That’s why we’re so excited about this month’s Phase 1 Investor recommendation.
And it’s yours free, as a current S&A reader who replies to this offer in time...
Let me tell you a little more about Phase 1 Investor, so you can decide if this type of research is right for you...
How Phase 1 Investor
Can Make You Rich
A Phase 1 trial, as you probably know, is the first step in FDA clinical trials before a company can receive approval for a new drug or medical treatment.
The most profitable “Phase 1” developments are those made by small early-stage companies with BIG IDEAS that can change the face of business... and have the potential to grow 500% to 1,000% – or more.
These are the kinds of ideas lead editor and analyst Rob Fannon pursues in Phase 1 Investor...
This name is fitting for Rob’s interest in medical technology—but also for the work we’ll be doing to investigate other technologies in early stages of development. Everything from high-tech gold and oil exploration developments, to breakthroughs in wireless technology... nanotechnology... and much more.
Rob will act as the lead researcher on everything health related. He will use his contacts at the top universities, labs, and venture capital firms to report on new technologies outside of the health sector (that’s how we came across “Ben Miller” and MSCTEK).
Rob joined S&A last year, but we’ve known him since 2003... and we’d been trying to hire him for just as long...
Why?
Because in biotech investing – more so than any other sector or style of investing – you need a specialized expert... someone qualified not only in financial analysis... but also in understanding the underlying science...
In an 18-month, accelerated program at The Johns Hopkins University, Rob earned both a Masters degree in Public Health and an MBA...
He’s also worked as a lab scientist at a biotech firm called Bioserve, doing genetic studies and research projects for the U.S. government.
Later, he helped the same company set up a new division in Hyderabad, India.
Rob worked at Cedars-Sinai Medical Center in Los Angeles – as a researcher in the hospital’s prestigious Comprehensive Prostate Cancer Research Program – alongside legendary physicians who have been profiled by CNN and USA Today.
So in 2003 we hired Rob, on a part-time basis, to send us ideas as he discovered them.
At first we paid him a flat $5,000 per research report.
But that was a bargain.
In two years as our consultant, Rob never offered us an investment idea that wasn’t a big winner.
For example, Rob was our lead analyst on our recommendation of Crucell.
Rob knew from his lab work that most companies make vaccines using chicken eggs, which has the potential to be very dangerous.
So Rob found a company called Crucell, which developed a new vaccine technology called PER.C6. It’s safer and faster than the existing vaccine methods, and could be used by dozens of companies. As a result, the stock has shot up 293%... and is still rising (as of Jan. 2007).
Likewise, Rob was the source for Porter’s recommendation of Esperion, a company that developed a radical new way to treat heart disease. Here, Rob's expertise was critical. He'd worked in a lab down the hall from P.K. Shah at Cedars-Sinai Hospital and Research Center in Los Angeles. Dr. Shah was one of Esperion's clinical researchers.
Rob knew how excited the clinical community was about Esperion's Phase II results, which showed the drug could remove arterial plaque, reversing heart disease. The company’s share price went up about 70% over the course of several months in 2003 when the company was in the midst of drug trials.
Porter recommended Esperion to his readers and, three weeks later, they had a chance to make 53% gains overnight when the company was sold to Pfizer.
Even including the past year – as head of Phase 1 Investor – he’s never closed a stock at a loss... and his record barely even has a blemish -- of the 9 open picks in his portfolio right now, 9 are showing a gain... with a 60% GAIN on average.(prices as of Jan. 2007)
Sure, there are a lot of people who can “talk” a big game when it comes to biotech investing... but very, very few people come close to delivering. Rob always has.
Always.
The guy has never been wrong – not in three years covering the toughest sector in the stock market.
If you take just a small stake in each of Rob Fannon’s Phase 1 recommendations in the next 6 months... I believe that you can make MORE money than you’ve EVER made before, with any style of investing.
How do I know for sure?
As Dr. Steve Sjuggerud, one of our most successful analysts, recently wrote in his advisory True Wealth: “Drug stocks are fantastic buys now. There have been only two times that drug stocks have traded cheaper than [they do right now]... ” and that was more than a decade ago.
Steve also believes biotech offers very low risk.
He writes: “No matter how deep into a recession we may go – people will still take their medicine. So the profits of drug companies are reliable. Their profit margins and growth rates are much higher, over a long period, than just about any other businesses.”
Jeff Clark, another of our best-performing analysts, agrees:
“Buying biotechnology is the best low-risk, high-reward trade in the stock market right now,” he wrote this month. “Under normal market conditions – maybe 95% of the time – biotech stocks [are way too expensive]. But that’s not the case today. Today’s conditions have created the best opportunity we’ve seen in biotech stocks in years. And now... biotech stocks are ready to run.”
As a Phase 1 Investor subscriber, you’ll learn which biotech stocks are the best in the world right now.
Let me explain...
The 3 Most Promising Phase 1
Stocks in the World
In the past 6 months, Rob Fannon has done more on-the-ground research to find Phase 1 developments than most of our analysts have done in their entire career.
Here’s what I mean – below are his 3 favorite recommendations right now (gains as of Jan. 2007)...
PHASE 1 STOCK #1: This North Carolina biotech company is developing what could soon become the best new arthritis painkiller in America.
An FDA safety researcher recently called it the safest and most effective way to treat this disease.
When FDA approval for the drug comes through... this company could dominate the entire arthritis market... a $15 BILLION market for a company trading at just over $15 a share. Even better is Rob’s expert connection for this situation:
He visited company headquarters in North Carolina and met privately for almost an entire day with the CEO. Already, since Rob found it, the stock is UP 25%.
PHASE 1 STOCK #2: This small, little-known biotech outfit already has deals in place with Pfizer, Amgen, and Johnson & Johnson. It’s one of the new leading researchers for the emerging medical treatment known as “gene therapy.”
Its revolutionary technology is already being used to treat HIV, cancer, and heart disease – yet the company trades at an unbelievable bargain.
Rob’s expert connection: He had lunch with the former U.S. Government health researcher whose invention helped launch this company, visited the company lab in California, had a private breakfast and lunch with the CEO, and later spoke to the company’s VP of research and special expert Dr. Frank Giordano, a Professor of Cardiovascular Medicine at Yale University.
Already, since Rob found it, the stock is UP 18%.
PHASE 1 STOCK #3: This tiny company is the leading innovator in a new type of therapy for liver disease known as “HCV.”
All of its drugs are fully funded by a big pharma outfit – one of the biggest in the world. And it recently became part of a major $8 BILLION deal. The best part is, almost no one has heard of this situation yet.
Rob’s expert connection: He sent his research partner, Dr. George Huang, to the American Association for Study of Liver Disease. Here his colleague had a private dinner with the scientists, physicians and top experts involved with this field, and consulted them on the likelihood of the drug’s release.
Plus – Rob visited company headquarters in Boston, spoke privately to the CEO and founder (a well-known industry expert), grilled the company’s chief medical officer, and acquired research from a medical meeting held in Europe last spring – detailing critical data.
Already, since Rob found it, the stock is UP 2%.
The good news is: All three of these companies have a long, long way to go. That’s why I believe you have a rare opportunity to get in on some of the best overlooked Phase 1 companies in the world – by taking just a small stake in each.
Greg, Sounds interesting! BTW, there's so many references to papers, patents in this piece that I'd be amazed if 10 minutes with googling the layers doesn't find early papers that a laymen could understand and at least one tradable company. These pay for letters who issue these teasers must find that most folks are willing pay $1000 than do 1/2hr's worth of research. I turned up several good companies in high output LED market, that I think needs to incubate a few months for the perfect storm for efficiency moves motivated by the Dems and rising energy prices. JMO.
Allan, When you say you buy long, sell short QLD/QID at the same time I trust there's a very solid reason. I've done some reading and can't figure why long QLD AND short QID at the same time to go long the NAS 100?? Two trades, two commissions, why not double the trade in one or the other? Or is this more tax efficient since it's long and short same or similar stock?
Allan, anything you can share about the subject: When to know to sell Uranium? My gauge would be when my officemates mention they're buying the micro-miners and / or when Australia's gov OKs new mines AND reactors, since AU has more U than they could ever burn. Just thinking out loud here.
GLTA, curt
Curt, commissions at my broker are insignificant, I am just trying out an idea, that since these funds are so leveraged, that one may be better then the other if I am right on direction.
great call on the flu allan; nice move the last couple of days
good call again Allan ...
do you know the name of gerhard company in usa or the indian companies he is venturing out
i feel the technology is now busted and thousand companies are using the same
can you name one of the patent nos for referance and research
jon
which ones are this
phase 1 stock #1 /#2/#3
do you know it -if yes share cos i am in deep lossess after todays fall
will have to sell my house i suppose
close to 1 million dollars of mine wiped out today
i feel i will have to go and beg on streets
remaing money what i have is from my ira account about 30000
pls share name of companies for me to earn my bread and butter -
you shall be like a god to me
pls pls
I am replying to Greg Reiman about the Molecular Super-Conversion Technology question.
I received a similar letter in Feb 2007, except that the name of the perdson who discovered this technology was Ben Miller instead of Rob Fannon.
I am a chemical engineer specializing in oil refining and upgrading. There is a small company in Canada that claims to have the rights to a Russian technology which sounds very similar to what is described in this letter. I had met with these people at an NPRA conference in San Antonio in March 2007. They were very secretive, but it sounded intriguing.
At the time I was working for Saudi Aramco, which is the largest oil company in the world, producing about 10 million barrels/day of oil and over 6 million scf of gas. We did ask them to do some tests on our heavier crudes and they reported fantastic results (in fact, unbelievable). We wanted them to repeat the tests in the presence of credible witnesses to confirm the results, but they would not garee, and so nothing came of it.
Jim Kumana
Everyone has their favorite way of using the internet. Many of us search to find what we want, click in to a specific website, read what’s available and click out. That’s not necessarily a bad thing because it’s efficient. We learn to tune out things we don’t need and go straight for what’s essential.
www.onlineuniversalwork.com
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