Wednesday, April 28, 2010

TTNP: Titan Pharmaceuticals Moves Closer to the OTCBB and Looks To RESELL Existing Shares Titan Pharmaceuticals announced on Tuesday that the SEC has completed the review of the company's "Form 10 for the re-registration of the company's securities and resumption of its reporting obligations under the Securities Exchange Act of 1934."

Titan intends to remain a reporting company from this point forward, according to recent releases from the company.

The completed review brings Titan one step closer to moving the company's trading shares to the OTCBB from the pinks, adding another level of validity to a company that has recovered from the brink of disaster over the past year.

In other company news, the San Fransisco Business Times has reported that Titan will look to re-sell 9.7 million shares for fourteen of the company's shareholders - including First Eagle Investment Management LLC, the company's largest shareholder.

Let's emphasize the fact that Titan is RESELLING these shares for existing shareholders, according to the text of the SF Business Times piece; the title of the article is misleading by stating that Titan is selling 9.7 million shares. Investors could look at the title and think dilution, when that is not the case.

Dilution can come in the form of exercised warrants, however. As mentioned in the SFBT article, Titan can receive up to $12.4 million from exercised warrants, which would dilute the stock just a tad over ten percent, but the fact that the stock would need to be over $2 for those warrants to be exercised could be construed as a positive for existing and potential shareholders.

Cash in the bank makes Titan a stronger company and a stronger company is more attractive to any potential acquiring company that may have eyes on Titan right now.

The existing cash on hand, NIH grant and future Fanapt royalties has Titan set up nicely for 2010, and future Fanapt royalties should enable Titan to conduct business as normal through the Probuphine filing, in my opinion, decreasing the possibilities of a need to raise additional funds by dilution.

Those that sold some shares in the mid-$2 range are looking at an attractive price to re-load, in my opinion.

Disclosure: Long TTNP.

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Tuesday, April 27, 2010

Readers Respond: VNDA, TTNP

From Rhandi on Facebook:

Novartis reported that Fanapt sales were $21M for the 1st Quarter. This was a short quarter and yet Vnda and Ttnp didn't move much. What else do we need for these stocks to move higher?

VFC's Take: I maintain my opinion that both of these stocks will be headed higher throughout the year, especially if Novartis can build on the solid first quarter sales numbers for Fanapt, a scenario that I see as likely given the large schizophrenia market.

Patients in that market also switch medications often, which can bode well for the new kid on the block, especially when that new kid has a powerhouse like Novartis vouching for him.

I also consider the fact that both Vanda a Titan may be takeover targets, maybe by Novartis, and it would be in the best interest of the acquiring company to keep the share price of both companies relatively low until a deal is announced. If that's the case, I'd expect some sideways trading for a little while longer.

However, by the time second and third quarter numbers are released investors will have a better idea of just how much market share Fanapt has the potential to take, which could open up the opportunity for a mini-run in both stocks.

I've long considered TTNP to be the better buy between these two companies, although if VNDA drops any further below the ten dollar mark, it would become a tempting buy, in my opinion.

TTNP hit the mid twos during the last runup, and I would think that the next one could have the stock trading for above three.

All just my opinion.

Disclosure: VFC is long TTNP.

Zap PayDay

BIEL: BioElectronics Announces a New Product to Treat Chronic Pain

BioElectronics issued a PR on Tuesday announcing a "revolutionary" new product to treat chronic pain. The new product is similar to the ActiPatch and Allay, and although utilizing the same technology, it uses more power and higher frequency levels, according to Tuesday's PR.

The new product will most likely be considered an electrical stimulation device, according to Tuesday's PR, while the ActiPatch and Allay are considered by the FDA to be Shortwave Diathermy devices.

This most recent development from BioElectronics clears up some ambiguity regarding the ongoing re-classification issues with the FDA, since Shortwave Diathermy devices are considered Class III devices by the FDA while electrical stimulation devices are generally considered Class II.

The fact that the company took this route towards an FDA Class II approval could be an indication that the ActiPatch and Allay will not receive that designation in the United States, and you have to believe that the company saw that coming, hence the new product and the multiple meetings that have taken place between BioElectronics and the FDA over the past few months.

CEO Andrew Whalen believes that the new product will qualify for reimbursement under most insurance plans and that a Class II designation from the FDA could come in an accelerated manner, finally giving BioElectronics an over-the-counter product in the United States.

Aside from a brief spike when the PR was released, shares of BIEL remained relatively unchanged on the news, which means that investors continue to have the opportunity to add and accumulate shares for under three cents - a nice buy, in my opinion, given the growth on the international front and the potential for growth in the US market.

It's safe to assume that the new product is still at least months away from making it to market, which means the accumulation period for BIEL could last a bit longer, especially if it is true that the ActiPatch and Allay are not going to receive a Class II designation.

That's not necessarily a bad thing for patient longs, in my opinion, because I think this is a great level to add shares if you've got time to wait until the second half of this year to see how the BIEL story develops in terms of revenue growth and FDA designations.

Disclosure: VFC is long BIEL.

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MCET: MultiCell Jumps After Receiving Patent in Europe

MultiCell Technologies more than doubled during the early hours of trading on Monday after the company announced that it had been granted a European patent covering certain of the company's therapeutic product candidates for cancer treatment.

Monday's news was the first from the MultiCell PR wire in quite a while, and the ensuing price spike offered investors who recently loaded up for prices at or below a penny a nice chance to flip a few trading shares for a profit, or in hopes of buying those shares back for a lower price. That lower price came as the stock traded back down towards one cent during the trading day on Tuesday.

I've long liked MCET as a nice long term stem cell pick, and as we saw on Monday, these speculative near-penny plays also offer some short term trading opportunities, for those patient enough to hold through months of down time.

Multicell owns several patents covering its line of liver stem cells and also has a product candidate that treats fatigue in MS patients that has completed Phase II trials.

With the stock trading back down towards a penny, I would say that accumulation time is here again for MCET, although I'm waiting to see if it goes back to below a penny before re-loading the boat.

Disclosure: VFC is long MCET.

Friday, April 23, 2010

Readers Respond: Lessons Learned - Chasing a Running Stock and Trading on Emotion

A comment from Shep describing a recent trading experience:

So now it's Friday. In the interest of helping out other newbies as they do DD let me explain what happened today.

Yesterday saw a big run up with EQLB. It hit .03 up from .014 just two days prior. Over 100% in two days. I've been trading about a year and have seen this before. After a day or two of nice runs these things almost always retrace back a bit or a lot. I know this. However my DD indicated this could run some more. So what to do? Wait to see if it's moving backwards before placing an order? My gut told me to do this. Then I started thinking what if it runs even further, and I miss it again? I even considered buying half my original intended buy, and then wait to see what happens. In the end I went all in and queued up an order at .03. After my order went through it fell to the mid .02's and may go even lower as the day passes.

Should have stayed with my gut and past experience and waited, but I let the emotion creep in. You can't do that. Plus which Fridays tend to be down days I think because folks are selling off to free up some weekend cash. My DD indicates this one could hit a dime or more in the future so I should still be ok, but it hurts leaving money on the table like that. So for whatever it's worth take this amateurs experience and incorporate it into your thought process as you decide how to trade. Good luck.

VFC's Take: Appreciate you sharing this story, Shep, these personal experiences can do wonders for others who are still searching for their own personal strategies.

As I've described in my Lessons Learned post a while back, three of the biggest mistakes that I feel I've made in the past are chasing stocks, refusing to take some money off the table during a runup and going 'all-in' right away.

Shep definitely described the emotional aspect of chasing stocks, and the drawbacks of going 'all-in' before waiting to see what the stock does.

It's been my experience that you get burned more often than not when chasing a runup, but if you do chase a runup, I say go in with a fraction (half at most) of what you intend to put into the stock so that you can average down if the run loses momentum and the stock starts to drop - that is if you're DD tells you that the stock still has some potential moving forward (I'd say just dump along with anyone else if you're in a 'pump and dump' stock).

It's also been strategy that if you like a particular company or stock, pick up the buying the lower the stock goes - for instance, I accumulated CSUH (now CELH) for a while before the stock dipped down to a (pre-split price) of under five cents. Since I still thought the company had a future, I loaded up for under a nickel but sparingly accumulated for over a dime. Even those that are under water with CELH could have done very well for themselves had they picked up the buying when the stock traded for three bucks.

The same could be said for BIEL at the current time - under three cents is my 'load up' price but that's not to say that i didn't add shares on the way down from six cents also, just not to the extent that I did for under three.

The best lessons from Shep's story - chasing is dangerous, especially when you go 'all-in', and try to dismiss the emotional high of a 'chase'. It's easy to get caught up in the 'how much can I make in such a short time?' mentality, but if you're not careful - it could all backfire.

Thanks for the story, Shep! If others out there have similar lessons learned, please share.

HWEG: Hemiwedge Announces Sales to Clean Energies Fuels Corp, a T. Boone Pickens Company

Hemiwedge Industries announced on Thursday that the company continues to build on a year-long relationship with T. Boone Pickens' Clean Energy company by fulfilling an additional order for the Hemiwedge Cartridge Valve, this order being destined for the Clean Energy plant in Texas.

The order bodes well for the company's plan to target Natural Gas Dehydrator applications, and the fact that a big player like Pickens is coming on board gives a great indication that the Hemiwedge Cartridge is quickly becoming an accepted commodity in the oil and natural gas industries.

HWEG has remained highly volatile over the past weeks since the stock rose from under a dime to the mid twenties, and I like this one as an accumulation play, especially if you can get in on any bounce back to the mid teens.

I was originally sceptical about the company's ability to survive as what I considered to be a small player in a large market, but with revenues growing and orders continuing to roll in, Hemiwedge could turn out to be a nice growth play, or even a possible buyout candidate.

I finally picked up a few shares on the pullback from a quarter a couple of weeks ago, and I'll continue to add from time to time on any significant dips.

HWEG is also another lesson in patience; the stock hovered around six cents or so for quite a few months, but when the move to the upside came, it came quick.

Disclosure: Long HWEG.


ACTC.ob: Advanced Cell Technology announced on Friday that a key key animal study demonstrated an excellent safety profile for the company's Retinal Pigment Epithelium (RPE) stem-cell thereapy.

The study was conducted in connection with an upcoming Phase I trial that will measure the safety and effectiveness of using the RPE cells to treat patients with Stargardt’s Macular Dystrophy (SMD).

ACT has already received an orphan drug designation from the FDA for the use of these cells in treating SMD and the Phase I should commence later this year.

The news of an animal study shows just how far off the treatment is from possibly making it to market, but I've long considered ACTC a nice long-term stem cell pick and I'll continue to accumulate shares for under ten cents.

Disclosure: Long ACTC.


CELH: According to the Investor Event Calendar on the website, Celsius Holdings will be holding the Quarter One Earnings conference call on May 13th at 11 AM.

Revenue for the fourth quarter of 2009 came in at $2.4 million, a 77% increase over the previous quarter. Given the growth in distribution and awareness, it's possible the the first quarter could see another sharp increase in quarter-over-quarter sales, possibly surpassing the 77% of Q1.

CEO Steve Haley has recently estimated that Celsius would bring in $25 million in sales revenue for 2010.

I'm looking for a number closer to five million than to four, but that's just my opinion based on current developments.

Disclosure: Long CELH.

EPCT: Epicept recently announced the commercial launch of Ceplene in the United Kingdom. The launch of the product has been long awaited and much anticipated, although the share price has remained relatively flat since the announcement on April 19th.

Epicept still holds some potential as a longer term pick, in my opinion, based on the potential of Azixa and Crolibulin, both being developmed as potential cancer treatments.

Azixa is currently being investigated for safety and effectiveness in three Phase II trials by Myriad Pharmaceuticals while Crolibulin is still in Phase I.

The UK launch of Ceplene should be an encouraging sign for investors of the company hoping to see the product gain a larger foothold in the European market.

Disclosure: No position.

Wednesday, April 21, 2010

Briefs: BVTI, DNDN, MHTX Biovest International, Inc. will make a presentation at the World Vaccine Congress in Washington, DC on Thursday, April 22nd.

The presentation will spotlight Biovest's personalized immunotherapeutic vaccine, BiovaxID, and will be titled, "Personalized biologic therapeutic cancer vaccine for the treatment of non-Hodgkin’s lymphoma," according to a PR issued on Tuesday.

The Biovest stock has rebounded nicely from a low of below a dime just over a year ago to its current trading levels of nearly two bucks, although the last couple of years have been a bumpy ride for the company and its stock.

A recent debt restructuring has given investors more confidence in the company of late, and the cancer immunotherapy sector as a whole has received a boost thanks to the attention being drawn to Provenge, Dendreon's prostate cancer immunotherapeutic vaccine that looks to be approved by the FDA in the coming weeks.

BiovaxID is also being used on a 'named-patient' basis in Europe.

Disclosure: Long BVTI.

DNDN: As Dendreon awaits an FDA decision regarding the much-anticipated Provenge approval, the company presented Provenge clinical trial results at the World Vaccine Congress in Washington, DC on Tuesday.

Dendreon officials expect the FDA to rule on Provenge by early May, meaning a decision could come at any time. A positive decision may spark a general rally in the cancer immunotherapy sector.

Disclosure: No position.

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MHTX.ob: Manhattan Scientifics spiked to a high of over ten cents on Wednesday after the company issued a PR announcing that its 'early cancer detecting' technology can detect early breast cancer up to three years earlier than a mammogram. The technology was purchased by Manhattan from Doctor Edward Flynn in February of 2010.

The technology, for which Manhattan hopes to find a partner who can commercialize it, is bio-magnetic based and completely radiation-free.

Tuesday's price spike was accompanied by huge volume - over eleven million shares were traded while the normal trading average sees only about 250,000 shares trade hands.

Disclosure: Long MHTX.

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TTNP: Titan Pharmaceuticals Reports Upcoming Royalty Payment for Fanapt

Loan Application

Titan Pharmaceuticals issued an after hours press release on Wednesday announcing that the company expects to receive a royalty payment totalling about $1.6 million for sales of Fanapt.

Earlier this week Novartis had reported that Fanapt sales for the first quarter totaled $21 million, an encouraging number that puts a first year sales total of $100 million well within reach, in my opinion, if pharmaceutical powerhouse Novartis can build on the momentum created by the quarter one numbers.

The market potential of Fanapt - and the possibility of a quick realization of that potential - should not be ignored, as the schizophrenia/antipsychotic market is estimated to be between $14 to $20 billion. The drug that brings in the least in that market, Pfizer's Geodon, still realizes over a billion dollars in sales per year.

For Titan, this revenue stream comes with no associated costs and will augment the recently awarded National Institutes of Health grant to fund the confirmatory Phase III trial for Probuphine.

Titan expects to receive the royalty payment by mid-May, according to Wednesday's press release.

The prospects for growth of the Fanapt revenue stream, and the future potential of Probuphine should have TTNP trading for above two bucks once again soon enough - especially if the company plans to make a move from the pinks.

Disclosure: Long TTNP.

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TTNP: Titan Initiates Another Probuphine Study; Fanapt Q1 Results Are In

Titan Pharmaceuticals issued a PR on March 30th announcing the initiation of a confirmatory Phase III trial for Probuphine in treating Opioid addiction.

Results for this trial, which is intended to confirm the results of previous Probuphine trials, should be out by the third quarter of 2011, according to Titan's press release, and this trial should be the one that finally puts Probuphine before the FDA for approval, if successful.

A recent two year grant awarded to Titan by the National Institutes of Health will cover about half of the total trial costs, while initial sales figures for Vanda's schizophrenia drug (Fanapt) are encouraging enough that Titan should have no foreseeable need to raise cash before the Fanapt royalties roll in. Titan is due to receive an 8% royalty on Fanapt sales up to $200 million and 10% on all sales thereafter, and it's worth noting that this revenue stream comes with no costs attached - it's 'free money' for Titan.

Also adding value to the future of Probuphine is the ProNeura, implantable drug-delivery technology itself. ProNeura could potentially be used to treat a wide variety of indications. Titan is already developing Probuphine to treat chronic pain and results from early stage trials have been encouraging.

Two additional events that could take place in the near to mid term are a move from the pink sheets and/or an eventual buyout. It's long been my opinion that Titan (like Fanapt) would become a takeover target of Novartis.

That said, I'd think that any potential suitor would want in sooner rather than later, when the TTNP share price has had more time to appreciate.

Back to trading for about $1.75 - a respectable pullback from the mid-$2 highs, I like the risk/reward of TTNP again and I've added shares on the recent dip.

Disclosure: VFC is long TTNP.

VNDA, NVS: Novartis Reports First Quarter Fanapt Sales

Vanda Pharmaceuticals and marketing partner Novartis announced the commercial launch of Vanda's schizophrenia drug Fanapt in early January, and this week Novartis released first quarter sales results for the product that at one point was issued a non-approvable letter from the FDA.

According to a Novartis media release dated April 20th, Fanapt raked in a total of $21 million for the quarter, a solid start for a new drug entering a $14-$20 billion market.

While the VNDA share price went largely unchanged on the news, the $21 million in Fanapt revenue generated by Novartis should come as an encouraging sign for things to come, because it puts a projected first year of $100 million well within reach. That wouldn't be too bad a take for first year sales at all and would beat a lot of sceptical market sentiment about the potential of the product.

It's also conceivable that the powerhouse influence of the Novartis name combined with the fact that many schizophrenia patients switch medications often, could even have Fanapt surpass the $100 million mark in first year sales.

Due to an existing marketing agreement, Vanda will receive a cut of the Fanapt revenue from Novartis, while Titan Pharmaceuticals will also receive an 8% take on all sales up to $200 million and a 10% take on sales above that mark.

As the milestone payments and royalty revenues start rolling in for Vanda, the company looks to submit its sleep-aid drug Tasimelteon for FDA marketing approval at some point in 2011.

With Fanapt sales underway at a respectable pace and with the company holding a notice of allowance from the US Patent Office regarding an injectible form of Fanapt, the future looks brighter every day for Vanda Pharmaceuticals and a share price of close to twenty dollars is highly likely at some point during this year, in my opinion, especially if Novartis can build on the existing momentum of first quarter Fanapt sales.

An outright buyout of Vanda by a larger pharma is also possible, in my opinion, most likely by Novartis who has already invested a significant amount in Vanda Pharmaceuticals and Fanapt.

All just my opinion, each investor should do his or her own DD.

Disclosure: No positions.


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Tuesday, April 20, 2010

Readers Respond: BMSN

A comment left by Ike regarding Bio-Matrix Scientific:

Hey VFC-

I saw this post on Yahoo Finance and was curious about your thoughts....long and strong BNSN.

BMSN CEO acquired 8 million shares last week between 7 cents and 9.8 cents per share.

please see attached below link showing the SEC Form 4, Statement of Changes in Beneficial Ownership.


VFC's Take: I still like BMSN as a mid to long term speculative buy, especially given the chance to accumulate the stock for under ten cents and it's usually a good sign when the CEO of a company is confident enough to put his or her own money on the line and accumulate shares of the company for his or herself.

In addition to the recent CEO purchase, on Tuesday morning the company issued a press release announcing a $1.1 million debt reduction. According to the PR, the terms of the debt reduction included the issuance of 17,337,728 shares in order to satisfy loans made to BMSN by a company controlled by the CEO David Koos and to pay accrued salaries.

I'm still accumulatiing BMSN for under a dime and I think that this will be one of those stocks that pays off with patience.

Disclosure: Long BMSN.

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RNN: Rexahn Becomes the Latest Target of the Biotech Blogger

RNN: Shares of Rexahn Pharmaceuticals, Inc. have been on a move to the upside over the past few months, flying from under a dollar to well over three during the run. The market cap of the company has more than quadrupled since it was first mentioned here as part of a 'Readers Respond' posting. has written numerous reports regarding the company over the past few months, helping to bring attention to what many had considered to be an undiscovered gem of a speculative stock.

And since it's become apparent that the infamous biotech blogger for TheStreetcom gets a good deal of his stock tips from BioMedReports - combined with the fact that this particular stock has enjoyed a huge run of late - it was to be only a matter of time before that biotech blogger would come after Rexhan with guns firing, just as he does with most biotech stocks that are up in price.

On Monday, in a true-to-form action,'s biotech blog published a negative piece on Rexahn, and for those that were still wondering whether or not was a reputable stock news website or a tongue-in-cheek glorified blog, let the title of the purported 'news' give some insight - 'Holes Galore in Serdaxin Data.'

Does that set the tone for a news report or a blog post? Sounds as 'newslike' as when the blogger claims that the reader portfolio is "illin'" in a previous mailbag post about RNN. I found that particular mailbag post in a headlines search because I wanted to see if the biotech blogger first took notice of RNN before or after BioMedReports spotlighted the stock, and as expected - was late to the game and decided to bash the stock after it had realized a very significant run.

Here's my favorite quote from TheStreet's biotech blogger in that mailbag post about RNN: "For starters, I'm a journalist, which means my job is to disclose news, not hide it from my readers, so non-disclosure agreements don't work for me."

Let's be real here (again), while the biotech blogger's definition of journalism is correct, his actions betray that definition. This guy is as much a journalist as Sonny Two Toes is when he's sitting in the bar cursing at the TV and mixing his interpretation of the facts with a heavily biased sense of reality.

Just because someone's boss pays big bucks to have their blog posts appear as headline news on a few big websites - it doesn't make them a journalist. That's an insult to the real journalists who are out there every day attempting to report the news, although there's a lack of those these days also; even the 'honest' journalists want to throw in their own opinions and slants while reporting the news, but not to the extreme that does it.

Many say that I waste my time with this type of post, but I take news seriously - real news, not blogging news. Many countries around the world are stuck with citizens that only receive their news from state-run media outlets and they have no idea what is really going on because they're supposed to think only what the Government wants them to think.

The fact that America has a free media (although becoming heavily partisan during the past ten years) should not be taken lightly, whether it's world, national or financial news that is being reporting.

Blogging does not make one a journalist. Buying headline space does not make a website a news organization - it just means that much more effort will go into attracting readers to view the ads, and we all know that controversy sells - negativity sells better, and that's what it's all about with the biotech blog. Don't be fooled.

Blogging and opinion is not news, it's Op-Ed at best - and that is what people need to know when they read that stuff.

We've got enough negativity in the world, so why overdue it? If that's all that someone's got to sell, then there's something very questionable going on.

In my opinion.

BDSI: BioDelivery Sciences Announces a Registered Direct Offering

BioDelivery Sciences issued a pre-market press release on Tuesday morning announcing a registered direct offering with institutional investors that would raise $10 million for the company.

According to the PR, BioDelivery will sell nearly three million shares of its common stock for $3.54 per share and will also issue warrants to acquire an aggregate of nearly 1.5 million additional shares at $4.67/share.

BioDelivery will use the cash infusion to fund the continuation of the BEMA pipeline, for general corporate purposes and to maintain a solid cash position as the company negotiates potential partnerships during the course of the year.

As a result of the announcement, BDSI shares took a 15% haircut on Tuesday, trading as low as $3.51 at one point during the AM hours.

As is the norm immediately following news such as this, many longs will question their investment in the company and some will even sell into the panicked frenzy that becomes the stock and finance message boards, which - for a short time - are inundated with riff-raff doing all they can to get the weak hands to sell their shares.

It's always good to emphasize a couple of things when events such as this take place; for one, the biotech sector is a largely volatile one and most of the companies that belong to this sector are still developing - meaning that the possibility of a cash-raising or dilutive event is always on the table.

I'm not a big fan of making assumptions, but there are some assumptions that need to be made at times, and one is that when trading in the biotech sector it's safe to assume that the company that you invest in may have to use dilution to raise cash at some point.

That's where DD and entry and exit strategies come into play. Good DD will tell you just how likely a particular company is to need financing over the short, mid or long term and a solid entry/exit strategy will keep you sticking to your plan and from making emotion-based trades, like selling into a panic very likely created by short-sellers who need your shares to cover.

For instance, some will maintain an exit strategy that says wait on the sideline and buy if a stock drops, some will accumulate on dips, some will accumulate on dips and then sell some 'trading shares' into any spikes and then there are those that will short; it's up for each investor to devise his or her own entry/exit strategy and stick with it.

Don't get me wrong, there are most definitely those times when one should bail on a stock, but it's been my own personal experience that selling in a panic comes back to bite you in the rear end more often than riding the storm and accumulating the dips. Patience is key, but that is just my own style and my own opinion.

In the case of Tuesday's BioDelivery news, nothing has changed with the potential of the company and its stock. The BEMA drug delivery technology, which delivers drugs through the inner lining of the cheek, could prove to be highly lucrative over the next couple of years. Three Phase III studies for BEMA-based products are planned for 2011.

The flagship product, Onsolis - a treatment for breakthrough pain in cancer patients - is already approved and on sale in the United States and a partnership with Meda is in place to market and distribute the product.

The commencement of Onsolis sales in Europe will net BioDelivery another milestone payment, according to the most recently filed 10k.

Tuesday's news should not lead to any investor panic, in my opinion; the drop is not even as significant as the one seen in February of this year (of course it's possible that the price could get there) and the cash infusion puts the company in a stronger position to both negotiate with potential partners and to develop the BEMA pipeline.

As with any investment, we've also got to consider the downside - it's possible that Onsolis sales are not as strong as predicted by Meda and BioDelivery, and it's possible that the product may never rake in any real revenue. It's also possible that the pipeline won't develop as expected - that's the risk of a biotech investment.

This stock has been trading in the low-three to low-four dollar range for some time now, and it could continue to do so until we get some Onsolis sales figures.

Regardless of the immediate price action, it's my opinion that BDSI continues to be a nice mid to long term growth story with the added benefit of having some short term potential.

This is one of my 'accumulate the dips' plays.

Disclosure: Long BDSI.

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Thursday, April 15, 2010

Readers Respond: MSBT, NEPH

MSBT: A comment regarding MedaSorb:

Hi Vinny,

Thanks for the follow-up on msbt, however i forgot to mention what is your opinion about the recent 10K and the enrollment that has somewhat picked up according to management, and moreover their ability to continue operations without any extra cash throughout Q3 2010.


VFC's Take: According to the 10K, enrollment has picked up, although it is also stated in the document that the pace has still been slower than expected. The time frame given in the 10K is what I used as a reference when stating in my post on Wednesday regarding this company.

Since the company feels that there is enough cash on hand to fund operations through the third quarter, I think it is safe to assume that a cash-raising event is a possibility before then - part of the reason that I think we could see ten cents or below again.

With the acceleration of enrollment, there is a chance that the trial could be completed before the third quarter, but I'm more inclined to believe what I read in the 10K than assume that enrollment will pick up. I also believe that even if the trial does meet enrollment earlier than expected, the company will still have a need to raise cash to fund operations until the product moves through the regulatory process.

Another scenario would have MedaSorb bringing a partner on board that would supply an up-front payment in exchange for a cut of future CytoSorb revenues, but I get the impression that they want to go it alone, at least in Europe.

Regardless of any possible funding initiatives, with a market cap of roughly ten million right now, there will be a lot of room for MSBT to move to the upside as the CytoSorb story develops.

All just my own opinion, each investor should do his or her own DD and invest accordingly.

Disclosure: Long MSBT.

An email regarding Nephros and MedaSorb:

To: VFC,

Glad to have you back and i hope u enjoyed your holiday. As always, i find your "reasoning" and DD worth the time to read through and analyze. As such, i'd like to know of your opinion with regards to the following stocks:-

1) Nephros

- The recent deal with Bellco (Distribution) and Steris (Development) has much being said about it. A few scenarios have come about such as Steris's payment of 100k is to somehow "mark their territory" on Neph's patented technology. In addition, it could also mean that there is more likely of a future buyout of Neph as a whole or one of licensing.

- Neph's CEO resignation BUT still engage Elgin as a "consultant". What do you make of this? My take (again due to speculation) is that Steris could buyout Nephros and place someone from the company (Steris' B.o.D), but at the same time still need the services and technical expertise of Elgin for Nephros technology.

- FDA, we're close to a year if not already for the FDA to approve / disapprove its application ESRD. What gives...?

2) MedaSorb

- We're currently at 60 patients. What's your opinion on them completing the trials before / on the 3rd Qtr of this year? Looks to me there's evidence of accelleration of patient enrollment and it is still very subjective that patient enrollment could increase a lot or remain stagnant.

- If my DD is right, Europe CE Mark approval is quite efficient where it could probably take a few weeks at most for them to issue a YES / NO on whether a particular application is approved or dissapproved? (This is of course if the trials are a success and CE Mark is applied).

- Seeing that Dr. Chan has somewhat avoided dilution recently, and the company has till end of 3rd Qtr or 4th Qtr of this year before it runs out of cash. Do you think by than they would already have a few companies / individuals in line who would be more than happy to invest msbt?

I hope the following questions does not sound too amateurish / naive on my part. As i've mentioned, i'd like to hear yourside and yes, at the end of the day, nobody can convince me but myself. DD on my part is in no doubt, extremely important.

Looking forward to hear from you.



VFC's Take: I'll discuss the MSBT suggestions first.

MSBT: Regarding patient enrollment, it is possible that the pace could increase and the trial could be completed earlier than the first quarter of 2011 as referenced in the 10K, but I'm inclined to expect that enrollment will remain the same and that the company will need to raise cash at some point before the fourth quarter of this year. I wouldn't mind being wrong on that one, but it's best to remain grounded and have the patience to wait it out rather than expect a best-case-scenario.

As for the European approval process, I agree in the sense that the European regulatory agencies can be more efficient that the US FDA at times - but that is also hit or miss. I don't believe, however, that a final decision will come within a few weeks, that's expecting a bit much. Especially if the trial is completed late this year and the filing comes around the holiday season. You'll be hard pressed to find an open government-agency office in Europe at any point during the last half of December through Three Kings Day, so CytoSorb may have to wait.

In response to your last comment about funding, I don't think that the company will have any problem raising the needed funds, barring any unforeseen setbacks in the trial.

Need Cash?

NEPH.ob: The most pressing issue for Nephros right now, in my opinion, is the FDA decision. While the recent distribution and development deals are highly relevant to the future of the company, things have to be somewhat on hold until the company receives a response from the FDA.

The latest annual report mentions that the company has not received a reason from the FDA for the long delay, they've just received the "still under review" response. It's tough to speculate as to why the FDA is taking so long, but no news is better than bad news in this case.

It's also not too far fetched that one of the government workers at the agency either lost some vital paperwork, spilled coffee all over it or simply forgot about it - it is a government agency, after all. It's also possible that this one just got put on the back burner - who knows, we just have to wait and place our bets accordingly, based on our own speculation.

The development deal with STEROS could be something that has been in the works for a while, but the terms of the partnership or intended acquisition won't be finalized until the ongoing FDA saga is resolved.

The CEO resignation could be a part of the STEROS announcement, but we're not going to see the details until after an FDA decision, in my opinion.

I still like NEPH as a HOLD right now while we wait.

Disclosure: Long NEPH.

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Wednesday, April 14, 2010

Readers Respond: MSBT

An anonymous comment regarding MedaSorb Technologies:


Any opinion about the near future for MSBT?

VFC's Take: MedaSorb announced in February that the ongoing European Phase III trial for CytoSorb had reached the mid-way point for enrollment. CytoSorb, for those new to the company and its stock, is a medical device designed to treat severe sepsis.

Because an effective treatment for sepsis does not exist at the current time, CytoSorb has the potential to storm the market - if Phase III results are positive and the product is eventually approved by European regulatory authorities.

The pace of enrollment for the trial has been slower than expected and the company now foresees a completion date of sometime during the fourth quarter of this year or first quarter of next year - that means that there is plenty of time to take advantage of any dips in the stock price.

I maintain my stance that MSBT will move towards the one dollar mark at some point leading into the expected time frame for trial completion, but since that projected time frame has been pushed back a bit, I think we'll see the ten cent mark once again - possibly a bit lower. Without a doubt I would call those prices a great buying opportunity, assuming that no bad news is released in conjunction with such a drop.

I'm not opposed to picking up a few shares here and there in the low teens either, but I would certainly pick up my pace of accumulation if that ten cent mark shows itself again.

Recent history shows that MSBT spikes to about a quarter every now and then, offering investors the opportunity to flip a few trading shares in order to come out on house money before the final trial results are revealed.

If CytoSorb makes it, MSBT will become quite the story as far as realized gains go, but if the trial results are not positive, there's nothing in the immediate pipeline to keep the stock price from collapsing, in my opinion, since the company is dedicating all of its resources at the current time to CytoSorb.

That's the name of the game - risk vs reward; and I love the risk/reward profile of MSBT - especially if we see lower prices.

All just my opinion, each investor should do his or her own DD and invest accordingly.

Disclosure: Long MSBT.

Zap PayDay

Readers Respond: GETA (Pearson Education)

A comment from Doran regarding Genta Inc.:

Can you please let us know your take on GETA following the recent developments and changes in pps - what would be a good entry price and what is the potential in your view?

VFC's Take: I've never been a fan of this stock and it's likely that I'll never purchase a share in this company unless the price hits a penny or two with no discouraging news being released.

Last year's late run to a dollar played out brilliantly for those taking a chance on the fact that the latest Genasense trial would produce positive results, but those that held through the news were heavily disappointed when the stock quickly plummeted to below a dime again when the results did not impress.

The rumor and hype that dominated the message boards preceding the trial results was suspect enough to keep my away and put a bad enough taste in my mouth to probably keep me away for good.

The latest news being reported from the company has Tesataxel being granted Fast Track Designation by the FDA. Tesataxel is currently in Phase II trials for the treatment of advanced gastric cancer.

A fast track designation and orphan drug status (while still relevant news) is no reason alone to invest in a company or a drug candidate; many potential products with both of those designations have not made it to market. Additionally, the company will need to raise additional funds at some point in the short to mid term future which could lead to more dilution.

On the bright side, Genta will be presenting some Phase II results at this year's ASCO conference, so a pre-conference bump in price is possible, but I still think that there are too many question marks around this one to stick with it as a long term investment.

I also think that the stock will dip to under ten cents - maybe even as low as five cents - at some point over the next few months. At that point I would most likely say that GETA could be worth some 'night on the town' money - barring any discouraging news that would change the outlook of the company in any way.

All just my opinion, each investor should do his or her own DD and invest accordingly.

Disclosure: No position.

Readers Respond: BIEL, IVOI

Hey VFC. Missed you there for a week or so. Didn't realize you were on hiatus; welcome back. Looks like BIEL could be poised to make a run. Trying to move onto the OTC and out of pinky-land. That would be good. I haven't hit paydirt since selling one of my financial ETF's last year. I'm ready to get in the green!

What's your take on IVOI? It's an extreme sub-penny but has good movement today at least. Seems to be getting some good press of late. Don't know what to make of their business plan...talking pill bottles and what not. Seems a little goofy, but might be worth a couple hundred bucks just to see. What do you think?

VFC's Take: Hey Shep, thanks - took a couple of weeks and hit the European coastline with the fam for some fun in the sun thanks to some of my recent profit taking - namely SIRI and PCYC (although I think that I sold that one too soon). I like to emphasize that enjoying some of the profit-taking rather than re-investing it all is VFC's way to go - they don't bury you with your cash and it's more fun to enjoy it while you're still young enough to live it; not to mention the fact that I believe giving the children a chance to learn about, experience and enjoy foreign cultures and their people is the best education there is.

I won't pre-announce a planned hiatus, but there's times when we all need a break! But thanks for sticking around, and funny enough - thanks to a bunch of hooligans trying to be me on the Yahoo! boards during my travel time, my site actually got some pretty steady traffic while I was away! Free advertising, shall we say?

Anyway, let's roll with the real stuff: I agree with you on BIEL, while the stock has been hanging out at three cents for quite a while (a good thing for those wanting to accumulate), I think that it'll be a nice run once the dogs are let loose. My expectations are a bit more conservative over the short term than others that I have heard asking for a quarter or more in just a couple of months, but a trip into the teens would mean one heck of a payday for those that were patient enough to hold or add.

If the FDA finally grants OTC clearance, then things could get very interesting because I think the BioElectronics products are going to be winners in the domestic and global market places.

Consumers are starting to take notice that popping ourselves full of pills that mess with the liver and kidneys may not be such a good idea when treating ailments such as normal, everyday swelling and pain. The Acti and Allay patches offer a safe, effective and healthier alternative to the status quo.

As always, there is still the risk that the products don't take off as I expect, but that's the name of the game - weigh the risks versus the possible rewards and then weigh that against your own tolerance for risk.

And finally, and maybe most importantly, there's the waiting game while events unfold and we wait for quarter-over-quarter results. Unfortunately, in America, everyone wants to be rich tomorrow, but no one wants to play the game - that's why lottery tickets sell so well.

You've got to have the patience to wait it out.

IVOI.ob: I like that this company is on the OTCBB and not the pinks - that means transparency, and I also like that some penny stock pump sites are starting to take notice; enough publicity and pumping can launch the price of these sub-sub pennies.

Ivoice's business model is to currently buy and sell patents or technology and to also look for mergers or acquisitions; not a bad plan, but also one that could lead to a quick burn rate of capital.

I definitely see the potential of buying this one with some 'night on the town' money, but each investor would have to come up with his or her own comfort level and stomach for volatility before buying, because the price swings both up and down could be very significant here - and a big payday may never materialize without the help of some penny-pump sites. If nothing else, it may be worth playing the volatility.

I kind of sceptical on the technology, as you mentioned, but ya never know. I like the technology owned by MHTX (a company with a similar business plan) better than this one, but that is not a sub-penny play.

Thanks for bringing this one to my attention, I'll throw it on the watch list and good luck with whatever you decide to do!

Disclosure: Long BIEL, no position IVOI.

Tuesday, April 13, 2010

BMSN, ENTB: Entest Looks to Acquire Some Pipeline

BMSN.ob, ENTB.ob: Entest BioMedical, a majority owned subsidiary of BioMatrix Scientific Group announced on Tuesday that a letter of intent to purchase a 61% stake in Medistem, Inc. has been executed.

Medistem is another stem-cell based clinical-stage company geared towards the treatment of of inflammatory and degenerative diseases. While no products are close to reaching market, the acquisition of Medistem by Entest would instantly provide a boost to the pipeline.

As always, an intention does not become actual news until the deal is finalized. I intend to go pour myself another Grey Goose and juice, but it's not a done deal until I hear the ice crackle as the Goose flows over - not a bad idea since the Mets are getting rocked again.

Shares of ENTB reached as high as $2.20 on Tuesday, while BMSN remained flat on the news.

Disclosure: Long BMSN, no position ENTB.

AGEN: Antigenics on the Move Again

AGEN: Shares of Antigenics Inc. touched as high as $1.72 during the early hours of trading on Tuesday before settling down and closing at $1.30. Volume was huge, with over thirty million shares trading hands.

No news was released by the company that would have incited such a spike in price, but two profile pieces were published before the market open - one on Seeking Alpha and the other on BioMedReports.

Tuesday's spike offered investors who have been accumulating for well under a dollar a nice opportunity to sell a few trading shares into the spike - especially during the early hours of trading - although I still think that this company has a bright future in the cancer immunotherapy market.

The company's lead product Oncophage, while failing to make it to market for the treatment of kidney cancer, has so far proven to be safe and effective in Phase II trials for glioma.

Oncophage was approved to treat kidney cancer in Russia in April of 2008, although the company has yet to work out a deal with that country's government to cover reimbursement costs. Until that issue is resolved, the potential of Oncophage in Russia is a question mark.

In addition to Oncophage, Antigenics' vaccine adjuvant QS-21 is currently being used in numerous investigational vaccines by GlaxoSmithKline and other companies. With milestone payments and potential royalties due, QS-21 could provide a nice source of income for the company if any of the investigational vaccines make it to market.

The reason behind Tuesday's move has not yet been made public, but while I still like the potential of this company over the mid to long term future, I also believe that investors should protect their investments and reward themselves with some profits after such a spike in price - while I also believe that those willing to hold for the long term will be rewarded with significantly higher gains as the Oncophage story develops.

I've also long suggested that if/when Dendreon receives approval for Provenge, a run in cancer immunotherapy stocks is likely - AGEN included; and I can't help but believe that over the long term, Antigenics will be a big player in the immunotherapy sector, if GlaxoSmithKline doesn't gobble them up first.

All just my opinion, each investor should do his or her own DD and invest accordingly.

Disclosure: Long AGEN.

The Visa Black Card

Readers Respond: HWEG

In an email, Citizen Chin requested that I take another look at Hemiwedge Industries, Inc.:

I first responded to the good Citizen about this company last September (click HERE for that post).

VFC's Take: At the time of my last posting regarding Hemiwedge, I called it a nice possible trade, but i was a little sceptical about the long term survivability of the company while being, what I considered, a small player in a big market.

Recent news from the company, however, regarding revenue growth and product acceptance in the market place have turned HWEG into both a nice trade AND a nice investment; congrats to those who were accumulating for below ten cents.

My opinion that Hemiwedge is a small player in a big market has not changed, although the growing revenues are a good indicator that the company's cartridge valve is catching on in the market. This means, in my opinion, that HWEG - with a fairly low number of outstanding and authorized shares - could still have room to move higher if the revenue growth continues.

This company still looks undiscovered and I'd at least keep it on the watch list - the move to a quarter came quick, and it's possible that either a retracement in price could occur.

If you like this stock, I always suggest buying in with less than what you intend to purchase - this way, you don't miss the boat if the stock continues to run, but you have cash on the sidelines in case a chance to average down shows itself.

All just my opinion, each investor should do his or her own DD.

Disclosure: No position.

Got A Virus

BIEL: Actipatch Direct Response Television Campaign Launches in Canada

One day after announcing the intention to move common shares of BIEL from the pink sheets to the OTCBB, the management team at BioElectronics issued another press release on Tuesday, this time announcing the launch of a major Direct Response Television campaign in Canada.

According to the press release, the campaign commenced in select Canadian markets with 120-second commercials last week, although "wide scaled broadcasts" are expected over the coming weeks.

In a year that CEO Andrew Whelan claimed to be one of significant distribution and revenue growth, the recent deals regarding moves into the Japanese and Latin American markets indicate that BioElectronics is certainly taking encouraging steps to gain an international foothold as the company waits for the FDA and OTC clearance issues to unfold in the United States.

The launch of the Canadian campaign just re-affirms the international progress, and the company also has intentions to move distribution into additional Asian and European countries.

The Canadian DRT campaign augments an already existing retail presence for the BioElectronics products in that country.

Shares were not effected by the announcement and remained trading for right around three cents - a level that I still think is a great entry price for those with a mid to long term outlook.

Disclosure: Long BIEL.

KERX: Shares on the Rise

Shares of Keryx Biopharmaceuticals have been on the steady rise since the company announced the initiation of the Phase III X-PECT trial for Perifosine in the treatment of colorectal cancer.

Perifisone is an oral anti-cancer agent that inhibits Akt activation in the phosphoinositide 3-kinase pathway and was proven safe and effective in Phase II trials.

Full enrollment for the trial is expected to take just over a year with the completion date expected to be in the second half of 2011, according to a PR released on April 8th.

Keryx is also preparing for a Phase III trial commencement for Zerenex in the treatment of hyperphosphatemia, another significant event for the company that could spur a further climb in the KERX share price. Like Perifisone, Zerenex also demonstrated positive results during Phase II trials.

Keryx will also be presenting additional long term analysis regarding the positive effects of Zerenex at the upcoming National Kidney Foundation (NKF) 2010 Spring Clinical Meeting in Orlando.

The event takes place April 13-17 and the company will present analysis that demonstrates that Zerenex may also potentially reduce the need for intravenous iron and erythropoietin in hyperphosphatemia patients on dialysis.

The positive developments of both Perifisone and Zerenex have brought the KERX share price from a 52-week low of just fifteen cents to over four dollars, and if the positive developments and media attention keep this company in the spotlight, additional gains could be had for all over the short to mid term.

That said, the recent price action of the stock has also offered investors the opportunity to take some profits off the table; while the recent developments are highly encouraging, both products are still a ways away from approval and many drugs that have looked good in Phase II haven't panned out in Phase III; because of that fact, it's a good idea, in my opinion, to protect an investment by taking some profits off the table when the opportunities arise by flipping some trading shares into the volatility - I like being on 'house money' before final study results are released.

Trading shares aside, KERX is still a great long term hold, in my opinion, because the potential of the company's two leading drug candidates is real.

After the quick rise, I'll hold off on further accumulation and wait for any possible pullback in share price since I'm satisfied with my position in the company for the time being.

Disclosure: Long KERX.

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eHealthInsurance, Pizza, 240 x 400

BIEL: BioElectronics Intends to Move From the Pinks

Shares of BioElectronics traded up to ten percent higher on Monday after the company issued a mid-day press release announcing an intent to move the trading of BIEL common shares from the pink sheets to the OTCBB.

The announcement comes on the heels of the recently completed 2009 audit and subsequent 10K filing with the SEC that brought BioElectronics to 'fully reporting' status - an event that had to happen in order for the company to consider moving from the pinks.

The intended move from the pinks had been previously alluded to by the company in past press releases and was already a widely assumed development for investors, so Monday's PR offered little in terms of new information.

An intention isn't news until the intended action takes place, so while it is encouraging that the company plans to move BIEL common to the OTCBB, it won't be until after the event is finalized that investors get excited.

That's fine by me because I enjoy the opportunity to pick up shares of this company for three cents.

Disclosure: Long BIEL.

Sunday, April 11, 2010

Readers Respond: The Financials

From Orest regarding the financial stocks:

Dear VFC,

Hope you and your family doing well..I have one this moment financial stocks are very hot, many analysts (including Dick Bove) predicting most financial stock such as Citi to quadruple by the end of 2012..We know that bright minds like John Paulson and ko are placing their bets on banks. Isn't this the right time to may be focus more on beaten down large banks like LYG,Citi, AIB (this one is like a biotech stock that can fly, or slump.., but chances are good that this bank will make it), NBG ? I am very unfortunate to be stuck with bunch of GERN shares on which I had to sell covered calls in order to minimize my losses, and ONTY..Wish I had more money to invest , especially in LYG...What's your take on financial stocks considering the fact that banks that I mentioned are the only decent bargains left on the market?
As always, wish you all the best




VFC's Take: Good to hear from you, Orest. I agree with your take on the financial sector, and as I've stated since the bottom of the crash when shares of Citi briefly traded for under a buck, I think that it's worth being in the sector in order to take advantage of the rebound.

I haven't written about C yet, but I continue to hold shares for the long term, although I have flipped a some from time to time as the stock traded for between three dollars and nearly five. I'm also a fan of mid to long term C calls.

As for GERN and ONTY, I still haven't bought into GERN, but I will eventually buy right back into ONTY - probably over the near term - since I get the perception that the market does not perceive the recent halting of the Sitmuvax trials to be a show-stopper for the potential cancer immunotherapy.

Good luck, Orest - good to hear from you!

Disclosure: Long C, ONTY.

Need Cash?

GNBT: Generex Receives Funding and Plans to Expand Oral-lyn IND Program

On March 29th Generex issued a press release announcing an expansion to the company's plans for Oral-lyn's IND Expanded Access Treatment Program. According to the PR, the expansion plans will now also include "licensed and qualified Nurse Practitioners in the United States."

Last September the company announced that the FDA had agreed to allow 'emergency' Oral-lyn treatment to patients under the agencies Expanded Access Program for investigational drugs that are not yet approved for commercial use. According to the PR, "Oral-lyn will be provided to patients with serious or life-threatening Type 1 or Type 2 diabetes mellitus, with no satisfactory alternative therapy available for the treatment of diabetes, and who are not eligible to participate in the Company's ongoing global Phase III pivotal clinical trial."

While the news of an expanded IND program is relevant, the real news will come when investors receive an update on the ongoing Phase III trial results.

Also of note, Generex announced a common stock sale last week to Seaside 88, LP. The initial sale was for two million shares, but the agreement could total sales of up to nearly fifty million shares if Seaside chooses to purchase shares at every two week interval covered in the terms of the deal.

Longs of the GNBT stock, and those betting on positive Phase III results should consider a sub-fifty-cent share price quite the bargain. It's also my opinion that the stock will be in for a speculative run at some point leading up to the Phase III results.

If nothing else, the recent developments at Generex - which include a lawsuit against and their biotech blogger Adam Feuerstein - have the company very much in the news.

If Oral-lyn is proven to be an effective method of delivering insulin to diabetics through the inner lining of the cheek, then GNBT is in for huge jump in market cap.

This is a story worth watching.

Disclosure: Long GNBT.

Online Trading Academy

BIEL: BioElectronics Becomes a Fully Reporting Company

Another bit of significant news that was released during VFC's tan-time vacation came from BioElectronics Corp, who announced that the much anticipated 2009 full audit had been completed. Upon completion of the audit, the company quickly filed a 10K with the SEC bringing BioElectronics to fully reporting status.

The new status comes as a possible pre-cursor to a move off of the pink sheets to the OTCBB, although, it's unlikely, in my opinion, that BIEL will move to one of the big boards in the near future since the company has in the past downplayed any talk of a reverse split - the only strategy that would bring the BIEL share price high enough to support such a move in the near term.

According to CEO Andrew Whelan in a PR dated April 1st, the company expects to "remain fully compliant" moving forward as BioElectronics enters into what the CEO declares will be a significant phase of revenue growth.

The international growth alone could support a higher BIEL stock price in the near future, in my opinion, although any progress on the FDA OTC approval and classification front could propel the share price higher for good as less speculative investors can buy-in with more confidence.

Each development brings BioElectronics closer to full legitimacy as a possible big player in a huge market and I still think that this stock is worth loading up on at the three cent level.

Disclosure: Long BIEL.

GNBT: Generex Files Suit Against

It's been an event-filled couple of weeks for Generex.

After becoming the latest target of's biotech blogging bash, Generex announced on April 6th that the company had commenced legal proceedings with New York State's Supreme Court against both and that company's infamous biotech blogger, Adam Feuerstein.

Generex is seeking $250 million in damages from the suit for "business defamation, product disparagement, and injurious falsehood", according to the press release.

It's been no secret that TheStreet's opinion-based biotech blog has a reputation of playing liberally with the facts and prefers to gear their posts towards negativity and biases, but lawsuits such as the one initiated by Generex have been a rare occurrence.

America's respect for personal opinion is heavily protected by the First Amendment, the main reason why opinion-based blogs such as Feuerstein's can thrive in the US, but Mark Fletcher, Generex's Generex's Executive Vice-President and General Counsel, claims that TheStreet's articles "go well beyond the expression of disparaging opinion or fair comment."

This will be a development worth watching, if only because is rarely taken to task for suspect reports, but it's highly unlikely that Generex will see much - if any - of the $250 million; you have to wonder where that number came from anyway, the stock has only dropped a dime or so since the bashing reports were published on TheStreet's website.

The most significant news that could be generated by Generex would be positive Phase III results for Oral-Lyn; for that we're still standing by.

Disclosure: Long GNBT.

The Visa Black Card

CELH: Celsius to be Available in Selected Walmart Locations

VFC is tan, rested and ready after some time off, so let's start taking a look at some significant events that I might have missed during the past couple of weeks:

Of significance for Celsius Holdings, the company announced via an 8-K on 9 April that Walmart had placed a purchase order for the calorie burning Celsius beverage.

According to the 8-K, Celsius will ship the order during the month of April and the product would be available on the shelves of 750 Walmart locations at some point in May.

CEO Steve Haley mentioned in a recent conference call that Celsius was making a move into Sam's Club, a division of Walmart, and this 8-K also confirms a fairly significant move into the Walmart main stores.

The company continues to demonstrate the distribution growth promised last year, and as the current trends shift away from unhealthy, sugar-laden beverages, Celsius is quickly becoming a readily-available commodity for those looking to improve and enhance on their physical fitness.

Also of note, CEO Steve Haley celebrated the company's recent NASDAQ listing by presiding over the Opening Bell ringing ceremony on April 7th. During the ceremony, Haley also outlined the company's current market status and objectives for 2010, including details about the upcoming 'Ultimate Workout Challenge' campaign. The campaign will be 'coached' by celebrity spokesman Mario Lopez and marks the Celsius product as 'Your Ultimate Fitness Partner.'

As a result of these recent events, shares of CELH closed last week at nearly four dollars, after having dipped below the three dollar mark just weeks ago.

It's an exciting time for Celsius Holdings, and long term shareholders of the company continue to look towards the significant future potential of the product as the consumer looks for healthier alternatives to what is currently available.

The recent health care debates have brought to light the fact that America's obesity problem has become quite a burden on the system, and it's time for the Country as a whole to do something about that and trend towards healthier lifestyles.

Celsius is primed to take advantage of that sentiment.

Disclosure: Long CELH.

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