Corner of Short and Long Street

Free e-Zine on Trading!

2010-10-05T09:56:00.000-07:00

Below is a link to an preview article titled "The Five Pitfalls of Active Trading" by Steve Gomez, published in Stocks, Futures, and Options (SFO), a new online magazine. Whether you trade on the exchange floor or trade online; day trading mistakes are easy to make and can be quite costly. This article is about how to avoid making those expensive mistakes.

I have not had a chance to read it all, but free information is always good as long as you can tell the information from the disinformation. After I read it I will post what I think of the information provided. Other readers out there, feel free to comment on your take on the information written in this artcle. Keep your stick on the ice, we are all in this together.
http://www.sfomag.com/eSFO/eSFO2010_10.aspx

Vivus Shot Down By Panel, Arena and Orexigen Hold Promise

2010-07-16T09:19:00.000-07:00

One of the new contenders in the weight loss race that I have never recommended is Mountain View, CA-based Vivus (Nasdaq: VVUS). Vivus suffered a major setback at an important meeting with a panel of experts, set up by the FDA. The panel essentially said that the negative effects outweigh the weight loss benefit offered by the Vivus drug. The panel of experts reported in a 9-7 vote that Vivus' experimental weight loss drug should not be cleared for sale in the U.S.

The expert panel refused to recommend that the FDA approve the Vivus’ experimental diet drug Qnexa due to certain safety concerns. One of the main problems panelists saw with the treatment was that that there just isn’t enough information. The resounding sentiment was that more studies and research needed to be done, the longest studies conducted lasted only one year. Vivus shares dove almost 60% to $5.16. Furthermore, the NYSE Arca Shares tanked early this morning, after yesterdays meeting of the FDA advisory panel. The pharmaceutical Index (DRG) dropped 0.3% to 288.95 and the NYSE Arca Biotechnology Index (BTK) dropped 0.4% to 1044.18.

It is up to the FDA to approve or disapprove Vivus' combination treatment of phentermine and topiramate (Qnexa) for sale in the US, although the agency usually follows the advice of its expert panels. The FDA has set Oct 28, 2010 as the date to make that decision

What does this development mean the competition. Before the panel shot it down, many believed that Qnexa was the most effective of the three obesity drugs currently awaiting an approval decision by the FDA. (Except me, I never liked the idea of using topiramate). My reasons against this combination are as follows:

Topiramate is an anticonvulsant drug primarily used to treat epilepsy. On May 21, 2010, Ortho-McNeil plead guilty and was fined $6.14 million by the FDA for promoting Topamax (topiramate) to treat psychiatric disorders, without applying for approval and no data from a well-controlled clinical trial to demonstrate that Topamax was safe and effective to treat any psychiatric conditions. Also, preliminary data suggests that, as with several other anti-epileptic drugs, topiramate carries an increased risk of congenital malformations. This might be particularly important for women who take topiramate to prevent migraine attacks. Finally, most anti-epileptic drugs, including topiramate, have been associated with a statistically significant increase in suicidality.

I have recommended both Arena Pharmaceuticals (Nasdaq: ARNA) and Orexigen Therapeutics (Nasdaq: OREX) in past newsletters (The Small-Cap Biotechnology Feedbag). The obesity market will be worth at least $3 billion, if not much more, and the stakes are huge for obesity drug development, as an estimated two-thirds of Americans are considered overweight or obese with little in the way of pharmaceutical alternatives to diet and exercise. The Arena advisory panel will meet on September 16, 2010. It is possible that this could be smooth sailing for the drug. It’s been widely noted that Arena’s lorcaserin has the best safety profile, longest study, and Arena is the only one of these companies to have found a marketing partner.

Orexigen Therapeutics' diet drug Contrave is also up for approval. Many industry experts believe that while Contrave is safer than Qnexa, its safety profile may not be as strong as that of lorcaserin. However, in June, Orexigen presented positive data that its obesity treatment Contrave lessened symptoms of depression and improved eating control in obese patients who suffered from major depression. Furthermore, Orexigen put forward strong evidence that Contrave would have a secondary role in controlling diabetes at the annual meeting of the American Diabetes Association in Orlando, FL. An advisory panel of the U.S. Food and Drug Administration is expected to review Contrave's application on Dec. 7. 2010, which gives Orexigen even longer to address any of the problematic issues that Vivus’ panel came up with. The FDA is scheduled to make a decision on whether to approve the product by Jan. 31, 2011.

Low Down on Penny Stocks

2010-07-09T09:49:00.000-07:00

I am not sure I have ever written an article about Penny Stocks. But it is no secret that I primarily speculate in small-cap biotechnology, some of which could be considered penny stocks depending on your definition of penny stocks. Investopedia states “the term penny stock has evolved with the market. In the past, penny stocks were stocks that traded for less than a dollar per share. The SEC, however, modified the definition to include all shares trading below $5.” They are still called penny stocks because they are perceived as very risky investments.

Penny stocks are typically growing companies with limited cash and resources. Most penny stocks are high-risk investments with low trading volumes and limited attention from investors. These companies trade mostly on the Over-the Counter Bulletin Board (OTC BB) and Pink Sheets and are susceptible to different forms of market manipulation that are more difficult to employ in stocks found on the larger exchanges such as Nasdaq and NYSE (Investopedia).

There is a growing international epidemic of penny stock fraud instigated by greedy promoters and unscrupulous company insiders. With the nearly global access of the Internet with email and online brokers, these con artist are now finding their victims everywhere around the world. A day does not go by that I do not receive a FAX or email touting the extraordinary gains of a Pink Sheets or OTC Bulletin Board equity that I have never heard of, promising gains of incredible proportions in a very short time. More recently, there have been more and more investors around the world who have been sucked in by these securities scams. The scammers know that U.S. regulators are unlikely to investigate and prosecute on behalf of an individual investor in a foreign country who has lost his life's savings by buying into the bilge that is being sold by these con artists.

Many times, these fraudulent schemes involve selling unregistered shares of obscure public companies with few assets, negligible revenues, and dubious operations. However, many foreign investors and domestic ones as well, do not know this and do not do their DD. They take the word of a crooked salesman, without checking the financial statements of these companies, many of which you would be hard pressed to find anyway. For many foreign individual investors, the U.S.-based broker has instant credibility. The scammer relies on the fact that many people in other countries and even here in the US cannot distinguish a legitimate brokerage firm from a fly-by-night operation.

As I mention in the first paragraph, most stock schemes commonly involve shares of companies that trade on the OTC Bulletin Board, and Pink Sheets. This arena is the perfect venue for securities schemes. Regulatory resources are overwhelmed, and often focused in other directions. Furthermore, the global nature of these schemes, and the ease in which companies can issue unregistered stock and sell it overseas, makes oversight difficult, if not impossible. This type of market manipulation is less prevalent and more difficult to employ with stocks registered on the Nasdaq and NYSE.

The penny stock frauds usually rely on the garden variety "pump and dump" scheme. This is when a promoters or shady stock brokers gain control of a company and then spreads false and misleading information by saturating the Internet with spam email, Faxes, or using cold callers to inform you how you cannot afford NOT to buy in to this sure thing! In this way they spark interest in the company, pump up prices, and create an environment in which they can sell stock. Once the promoters dump their shares at a hefty profit, stock prices slide back toward oblivion. This scam takes on several variations, but the basic framework seldom differs.

StockPatrol.com has outlined a list of warning signs to look out for. If you receive a sales pitch via email, FAX, or telephone, there are a number of warning signs that should set of bells and whistles, triggering concern. If you receive a pitch that claims that an obscure company is poised to capitalize in a "hot" sector, such as homeland defense, hurricane recovery or H1N1 Flu research, or companies that claim to have (non-existent) relationships with better known, successful businesses, you probably are the target of a scammer.

If the company being promoted does not file regular public financial reports with the SEC, there has been unusual, excessive trading in a stock, or there have been sudden dramatic price swings for the stock of a company with no track record, discernible business or demonstrated revenues, all of these would be warning signs.

Companies that routinely use Form S-8 to register shares for insiders, employees or consultants, allowing promoters to flood the market instantly with registered shares that have been issued to anonymous individuals and companies are likely non-legit. If the company has little operating history, but employs numerous consultants and awards them shares, it is probably just a shell operation for crooks.

If the company sells unregistered stock overseas under Regulation S, it is likely a scam Regulation S has produced a virtually unregulated situation for offshore sale of U.S. stocks or the company has offshore investors whose principals are undisclosed.

A common scheme is as follows: The business is incorporated in Nevada especially those with Canadian connections. Nevada law allows the individuals in control of a company to make significant decisions without first notifying or gaining approval from public shareholders. This leads many tiny companies to incorporate in Nevada, have offices in Canada, retain attorneys in Florida, California or New York, and often use transfer agents housed in Utah. Their goal is to create a jurisdictional nightmare that allows them to scam investors in the U.S., Canada and around the world.

So individual investors should be wary of penny stocks. The chances of huge profits are counteracted by even bigger chances of huge losses. The warning signs are there and obvious to anyone who looks for them. The bottom line remains, as always before you invest in any security, do your DD!

Micro-stocks Big Payoff-Kiplinger.com

2010-06-22T07:27:00.000-07:00

As stated many times before, I like to trade in small and micro-cap biotech stocks. My reason is that as a biologist and physiologist, and the fact that I worked my way through graduate school as a pharmacy technician, I understand the processes involved better than other sectors. I have also stated that this is a risky practice and emphasize anyone doing the same should always do their own Due Diligence.

That being said, I would like to introduce an interesting article on the risks/benefits of investing in small- and micro- cap stocks, written by James K. Glassman, executive director of the George W. Bush Institute in Dallas, Texas, published on Kiplinger.com . In it he acknowledges that one of the rules of investing is that the riskier the bet, the higher the payoff (should you win), and in the stock market, risk is typically measured by volatility. He goes on to state that it is natural to assume that if a particular group of stocks is more volatile than the market as a whole, then that group should return more than the market average. He defines small cap stocks as those with a market value of $1.5 billion or less.

Glassman uses the work of economist Rolf Banz, who in 1981, documented the propensity of riskier small-caps to outperform the overall market. However, Banz has been challenged by other economists and analysts, who argue that this propensity may simply be a transitory phenomenon. Glassman disagrees and provides compelling support for his argument that, over the long haul, the smaller the companies, the greater the returns, on average. .

Make no mistake, these stocks are very volatile and Glassman provides statistics to illustrate that fact. He also recommends instead of buying small cap stocks individually invest in a solid small- or micro-cap fund (I prefer to pick my own stocks). He also recommends you limit your exposure to micro- and small-caps to 10% of your portfolio, at most (I trade more like 25%, but that is an individual preference, as I am closer to retirement age and got a late start in the world of investing and trading).

He finally gives reasons for this small cap effect. The first is simply that little companies have more opportunity to grow. “If you choose well, you can score a ten-bagger with a company that has a market cap of $100 million, but choose poorly, you can lose all of your money.”

In explaining the second reason he references James O'Shaughnessy, author of What Works on Wall Street, who wrote that small-caps outperform "not because of market capitalization alone, but because the stocks in this category are least efficiently priced."
(I too find this to be true, but it can work in either direction, so be careful!)

This post is but a short summary of a long article, to read the article in its entirety go to: http://www.kiplinger.com/columns/openingshot/archives/micro-stocks-big-payoff.html

Happy trading!

Factors in Today's Market Confidence

2010-05-13T10:16:00.000-07:00

Steve Goldstein, London bureau chief at MarketWatch.com reported today that U.S. stock futures are lower as the US market is still nervous over EU Nation’s debt burdens among other news, such as the unemployment claims report and Dubai’s debt repayment.

Today the Euro continued its downturn from the $1.31 level reached in the aftermath of the EU-IMF 750 billion euro aid package, retreating below $1.26. To make matters worse, a $980 million payment that the Dubai property developer must make today is also bringing the sovereign debt crisis back into the spotlight, the British pound also moved lower after the U.K. reported a widening trade gap, oil futures dropped below the $75 a barrel, and even gold was mildly impacted, with futures falling $4 to $1,239 an ounce. The entire MarketWatch article can be read here.

In an article written by Madelina Iacob, Forbes.com, she states that EU debt problems could cut US company’s profits. The prolonged period of slow economic growth that most analysts are predicting for Europe could also have a major impact U.S. companies with heavy exposure to the Euro zone. The austerity programs used to cut fiscal deficits in Greece, Spain and Portugal will reduce growth in those countries and limit demand from consumers and businesses. Since direct sales in Europe account for approximately 10% of overall revenues for S&P 500 companies, this could in turn have an impact on second half earnings.

Companies with the largest exposure to Europe are the most vulnerable. Industries such automobile manufacturing and materials, consumer durables, services, semiconductors, insurance and capital goods, food, beverage and tobacco are likely the most susceptible to this decrease in demand. Others sectors like household and personal products, pharmaceuticals and biotechnology would not be spared either. However, U.S. banks, telecommunications services, and transportation and utilities have less exposure to Greece, Portugal and Spain, putting them in far better shape to withstand a drop in sales overseas.

Perhaps even more worrisome than the negative impacts on U.S. corporations is that the austerity measures made necessary by the severe debt levels in the EU may be a preview of what's to come for the US. The entire Forbes.com article can be read here.

Associated Press writers Stephen Bernard and Tim Paradis reported on the U.S. job market. The stated that this week’s jobs report showed that gains in the job market are proceeding slowly. First-time claims for jobless benefits dipped to 444,000 last week from an upwardly revised 448,000 the previous week. This is the fourth straight week of decline in claim; however, it hasn't been enough to signal sustainable job growth. Economists estimate weekly initial claims need to fall below 425,000 to show employers are consistently adding workers. Claims have stalled around the 450,000 level throughout the year.

High unemployment remains a major obstacle to a strong recovery. The unemployment rate jumped to 9.9 percent last month, even though employers added 290,000 jobs. Investors want to see consistent job creation as well as regular declines in claims for jobless benefits before becoming confident that the labor market is healing. The AP article can be read here.

PIIGS Get Slaughtered, Impacting US Markets

2010-05-04T08:34:00.000-07:00

Stocks sank this morning after European debt problems sent another wave of pessimism through the market. European markets fell in response to uneasiness over whether a $145 billion bailout package for Greece will be approved by the 15 European Union members that would shoulder much of the cost. One concern among traders is that the size of the Greek bailout package could make it harder for the EU to rescue other countries that might need help.

How does this affect the U.S. Market? When the euro falls against the dollar, traders avoid the currency, which is used by 16 EU members including Greece. The euro hit its lowest level in a year. The U.S. investors are concerned that a stronger dollar would cut into profits for U.S. companies that heavily rely on foreign operations. When the dollar is up over the euro, overseas profits translate into less money.

The Greek debt problem is making a big impact on the markets this week, and the fallout is still far from over. There is a concern that the Greek contagion is beginning to spread to the other PIIGS. Last week, Standard & Poore’s (S & P) announced a cut to Portugal’s sovereign credit rating from A+ to A and cut Greece’s bond rating to BBB+. Following that, Spain saw its credit rating slashed, too. The Greek debt crisis has been described an economic virus, spreading among the PIIGS and triggering the euro's slide.

Day to day it's hard to keep track of all the commotion related to Europe's economic problems. Greek labor unions balk at a bailout; German politicians are stalling on their role in approving a bailout based on domestic political pressures; and some market economists argue in favor of allowing Greece to default rather than seeing through an expensive bailout package.

All the fluctuation in the markets related to the euro and the Greek debt crisis may be far from over, too, even though the EU is talking in terms of the "finishing touches" on a bailout package. On Thursday, Barclay's Capital wrote "We believe the move toward a Greek rescue package will remain a slow grind and a weight on the euro." One of the reasons given to expect more ups and downs was the political situation in Germany. Of course, the looming debt crises in Spain and Portugal have not helped, either. It's still an open question this week whether after months of back and forth over the path forward for Greece, the EU will be able to pull together and bring Greece back from the unplanned-for crisis in 2010.

Some are asking the critical question. Will the euro collapse in 2010? No one can say what exactly will happen going forward. Government structures stay in place for a long time, the US is still on its feet, for the time being. Other countries have defaulted on their loans and are still here. In the highly developed West, that is almost a given. So while the EU may not dissolve, when all this is said and done, its governmental structures will have definitely been altered.

Jim Cramer and "TheStreet" Under Fire

2010-04-28T12:40:00.000-07:00

There is an article posted on “The King of all Trades”, a financial blog, about Jim Cramer and “TheStreet.com.” In this article, author Steve Garcia makes allegations stating “any time specific companies gain headwind, in this case Sirius XM Radio, old or simply negative press items conveniently get recirculated from the same conspicuous sources.” This technique is called by Cramer himself as fomenting. Fomenting was a tactic used by the former hedge fund manager to elicit a specific market response.

The author goes on to say that it is unethical to release old or tailored news at critical points in a company’s history to affect a specific stock reaction. He uses Sirius XM Radio as one example. To read how the author alleges that Cramer/TheStreet.com manipulated Sirius XM Radio, go here.

According to a Reuters article published March 18, 2010, the investment news website TheStreet.com was being investigated by the SEC. The probe, was related to how revenue was recorded at one of TheStreet’s subsidiaries. The probe arose after the company announced on Jan. 25, 2010 that it was restating its financial results for 2008 and 2009 due to "certain inaccuracies". You can read more about that article here.

Now all of the above was news to me. However, on March 19, 2010, Adam Feuerstein, reporter for “TheStreet.com” wrote an article about a small biotech company named Generex. Generex is in the developmental stages of producing a diabetes treatment, an insulin product that is taken orally and is absorbed through the inner lining of the mouth. The drug, in trial stages, is called Generex Oral-lyn(TM). Feuerstein’s article made numerous defamatory statements about the Generex, its management, and Generex Oral-lyn. The article made several statements that were misleading or outright misstatements; furthermore, they seemed to be made with the intent to hurt the company and/or the experimental product. If that were not enough, on March 26, 2010, Feuerstein wrote another article defending the first and it was just as obnoxious and derogatory as the first. These articles I knew about because I own Generex stock.

More recently, according to GlobeNewswire, on April 6, 2010, Generex launched a lawsuit against TheStreet.com and Adam Feuerstein in the Supreme Court of the State of New York seeking $250,000,000 in damages for business defamation, product disparagement, and injurious falsehood. Mark Fletcher, Generex’s Executive Vice-President & General Counsel stated “Feuerstein and TheStreet.com have abused their public forum by spreading categorical falsehoods about Generex and Generex Oral-lyn (TM) when a modicum of due diligence would have revealed the truth, an injury then compounded by unfounded and libelous allegation and innuendo. We are now seeking to hold Feuerstein and TheStreet.com accountable for the damage they have unjustifiably inflicted on Generex and its stockholders.”

Garcia stated toward the end of the King of all Trades article, “It is my intent to notify as many people as possible to be extremely careful about what they read and who they believe with regard to financial news. Jim Cramer is no friend to the common investor, in my opinion.”

In another article cited by Garcia, Cramer has gone as far as to describing illegal activities used by hedge fund managers to manipulate stock prices. You can read about that here.

The reason I posted all of this is to make a point. The point is aimed mainly at beggining investors, but even seasoned investors sometimes need to be reminded: Do your own Due Diligence! Do not take Jim Cramer’s or anyone else’s advice without first checking out their so called “facts”. After I read Garcia’s article, I left this comment on the page:

Great article! Everyone who has an audience should be writing about the way “TheStreet” has used unethical and most likely illegal tactics to ruin a company. I do not own SIRI, but I do own GNBT, and Adam Feuerstein outright made up his own “facts” to do harm to this stock's price.

I do not know if Cramer had anything to do with the GNBT articles, but as founder, he is responsible for the articles on his site. To make things worse, he did not even issue a statement or fire Feuerstein! Adam Feuerstein was even allowed to write another article bashing GNBT and defend his first article. I know I will never read another article from “TheStreet”.

IS THIS A BULL MARKET OR NOT?

2010-03-25T16:18:00.000-07:00

The answer varies acording to who you ask. Two well respected authorities on investing give two different answers.

According to Steven Goldberg, D.C. investment advisor, many investors have simply stood by and watched during this bull market, which began on March 9, 2009. He has stated that $4.8 trillion is invested in stock mutual funds. But, as a group, investors have been selling, not buying, during one of the most powerful rallies in history. The fear of more losses has been a more potent consideration for most investors.

Furthermore, the investors who rushed into bond funds have made a poor choice because the Fed, by sustaining short-term interest rates near zero and pumping money into our Nation’s dilapidated economy, may be setting the country up for a significant jump in inflation in the near future. At which time, bond yields will likely rise, thus, pushing down bond prices.

He also states that “over time, two-thirds of actively managed mutual funds fail to match the returns of the index they’re trying to beat.” Earning fund investors a lot less than what this bull market offers.
He offers some advice on how to improve your returns. Goldberg states that for the most part, casual investors should use common sense. “Keep your costs low, invest small amounts regularly, and shy away from investments you don’t understand.” If you have to invest in mutual funds, he recommends you “stick to a portfolio of index funds, and most importantly, do not try to time the market, especially in the short term because no one can.” I will add my own bit of wisdom here “if someone tells you they can time the market they are either a fool or a liar.”
http://www.kiplinger.com/columns/value/archive/investors-are-missing-the-bull-market.html
On the other hand, Todd Harrison, founder and CEO of Minyanville has written a commentary that was published on Yahoo: finance. He gives 10 reasons why he believes that most investor think this is a bull market but in reality “we are witnessing a cyclical bull market in the context of a prolonged and painful secular bear stretch”. Harrison states that it his opinion that the tide is about to turn.

His 10 reasons are (and I summarize)
"Questions remain on a Greek aid package in front of 20 billion euros in debt that comes due in April and May.

New health care legislation could add hundreds of billions of dollars to already yawning budget deficits.

State budgets are cracking and unfunded pension liabilities have reached $452 B.

Societal acrimony has evolved into social unrest in some parts of the world, and economic hardship is pointing towards geopolitical conflict.

Complacency abounds, as measured by traditional volatility measures such as the Volatility Index.

Protectionism in the US, China, Greece and many other countries continue to grow. Protectionism is on the opposite end of "globalization" on the prosperity spectrum.

The official unemployment rate is just below 10%, but nearly 1/5 of Americans is underemployed for various reasons.

Interest rates have one way to go, and PE ratios never dipped and debt-to-GDP ratios will approach or exceed 100% in all G7 countries by 2014, with the exception of Germany and Canada.

The Congressional Oversight Panel warns that commercial real estate losses at banks alone could reach $300 billion starting in 2011.

and Most have even forgotten about the housing crisis. There are still massive amounts of toxic residential mortgage backed securities that remain on the private and public balance sheets."

He also states “If you asked me for my near-term opinion, I would offer that the tape tops out before quarter-end under S&P 1200, consistent with the path of maximum frustration as fund managers reach for performance.”
http://finance.yahoo.com/banking-budgeting/article/109164/the-falcon-and-the-snowman

Stock Alert for A.P. Pharma Inc. (APPA)

2010-03-23T14:20:00.000-07:00

This story is a great example of how investing in small cap biotech stocks can be unnerving and sometimes very risky. It takes a strong stomach to weather the ups and downs that come with getting a new drug to market. A.P. Pharma Inc. (APPA) is a specialty pharmaceutical company focused on developing pharmaceutical products using their Biochronomer polymer-based drug delivery technology. Their primary focus is on their lead product candidate, APF530, which had completed a pivotal phase III clinical trial for the prevention of chemotherapy-induced nausea and vomiting and had already been submitted with a New Drug Application (NDA) to the FDA.

I was deep into this stock, believing approval was just around the corner, when last week they received a Complete Response Letter from the FDA regarding APPA's NDA. After the FDA's review of APPA's file they had several questions that precluded the approval of the NDA in its current form. APPA's stock had closed on Thursday March 18, 2010 at $2.06 per share, before the announcement of the Complete Response Letter. On the news, many shareholders bailed out in the pre-market or at the open of the regular session and the stock price plummeted approximately 57% to $0.88 where it opened the next day. I thought that none of the concerns were drastic and all of them could be addressed with moderate to relative ease, thus, I decided to hold on to the stock and see where it was going. I had bought in at $1.76 per share and after a few hours the initial shock wore off and the stock started back up again, so I doubled my position at $0.96 per share. Today APPA closed at $1.10 per share, climbing $0.22 in 3 market days. I still think this is a great stock; they just have a few issues to work out. The success of this company is hinged on the approval of this drug; however, I have no doubt that A.P. Pharma will meet FDA standards for approval. Nevertheless, this did set the timeline back; it will probably be 2011 before they will be in position to resubmit the NDA. Yesterday, Stockpreacher.com published a stock alert for APPA:
Stock Alert for A.P. Pharma Inc. (APPA)

Seattle Genetics Adds Patent to 2025

2010-03-23T08:34:00.000-07:00

Seattle Genetics (SGEN) is the developer of antibody treatments for cancer. Today it has received a new patent which will extend its proprietary rights to its lead drug brentuximab vedotin, indicated for Hodgkin’s disease until at least 2025.
Seattle Genetics Adds Patent to 2025

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Small Cap Biotech Pick

2010-03-02T17:22:00.000-08:00

Normally I do not read the Motley Fool articles. They have way to many advertisments and they are always trying to sell you some subscription to the list of stocks that are going to make you rich. However, I read this one because it referenced a biotech stock that I have been holding for some time. I am not pumping this stock, just demonstrating how I operate. This stock is listed on the webpage below as one of the top 10 performing stocks of the past 52 weeks with market caps less than $5 billion. Actually, it is number ten. That still does not mean it will get FDA approval and be marketed or bought by big pharma. It is still under $3.00 a share and in today's market, like everything else it jumps or drops on any little news item. About a month ago it went up over $3.00, but after a week or so with little or no news it started dropping. Well it is on the rise again! I only speculate in biotec and small pharma because I am a biologist and I understand the processes of getting drugs through R&D, and to market. If I were a geologist I would probably speculate on oil and gas, but I am not, so I don't. Two good rules to follow: 1. buy what you know. 2. Do your own DD. I have never bought a stock just because someone told me it would do well. Anyway the link to the article is:
Here's Your Shot to Score Big

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$3.00 stock with a $1.10 Dividend

2010-03-02T09:33:00.000-08:00

Emerson Radio's (MSN) Board of Directors this morning declared an extraordinary cash dividend of $1.10 per common share payable on March 24, 2010 to shareholders of record at the close of trading on March 15, 2010. It opened this morning at 2.27 and is now around $3.00. share. I have not done any DD on this stock, nor am I recommending anyone buy it. I just think that it is worth investigating, do your own DD.

8 Dirt-Cheap Stocks with Great Potential - Kiplinger

2010-02-26T08:30:00.000-08:00

I am not saying that you should buy any of the stocks mentioned. Always do your own DD. This article just outlines an SOP that could help you make money in the market. There are many dirt-cheap stocks who's companies are cash-rich. Cash-rich companies can jump on new opportunities more easily than cash-poor firms can. Now we are talking cheap cash rich companies that are substantial, mature businesses. I am talking about cheap (under $5/share)but not penny stocks!
8 Dirt-Cheap Stocks with Great Potential - Kiplinger

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Government Interference Makes It Almost Impossible to Forecast Stocks

2010-02-25T12:51:00.000-08:00

Feb 25, 2010
by Aaron Task
Yahoo Finance

The author quotes Miller Tabak equity strategist Peter Boockvar stating that it is almost impossible to say where the market is going to go due to the overwhelming influence of policymakers worldwide, which he says has forced market players to become political scientists. Focusing on fundamentals, return on equity, economic data doesn’t work because they are all waiting to see what the market responds to.

The Fed's plan to end its program of buying mortgage- and agency-backed paper on March 31 is the next scheduled event with an uncertain market impact. Boockvar went on to state that he did not think Bernanke is going to be able to get through this smoothly. Of course, all this government involvement is a direct result of the massive bailouts of 2008-09. To read the entire article go here.

Death of American Capitalism?

2010-02-24T06:57:00.000-08:00

by Paul B. Farrel
Tuesday, February 23, 2021
Published on MarketWatch.com

In a commentary about the end of Capitalism as we know it, Farrel quotes Charlie Munger, Warren Buffet’s long time business partner, who warns that "It's over for America. Yes, "o-v-e-r," America's in decline, at the end-of-days, coming to "financial ruin." Munger compares investors to gamblers and Wall Street institutions to casinos. The article states “Munger is not just talking about the million or so gamblers working in Wall Street's "too big to fail" casino-banks. No, "gamblers" are also among Main Street America's 95 million average investors, though most of the high rollers are the professionals on casino payrolls where most of their revenue now comes from bets on security prices under an outdated system used in the 1920’s. In the piece the author laid out 10 scenes that lead to the end of capitalism.

Munger’s solution: Americans should get into action and launch the "Second American Revolution."
To Read the entire article, and I suggest you do, go here.

My Lack of Posting on This Blog

2010-02-05T06:24:00.000-08:00

Sorry, I have been lax in posting on this blog. My excuse is that I have been so involved in the silver and gold scene that I spend most of my time blogging on those topics. If you are interested in gold and silver, especially silver, check out my other 2 blogs:
Silver Surfing and 24K Chuk Kam. They are about investing in and holding precious metals for many reasons. I discuss physical metal, paper metal such as minings stocks and ETFs, and buying scrap metal. I still invest in other stocks just as much or more than before. I am behind in posting on this blog but I am working on a post about speculating on biotech to be posted soon.

The Dire Dollar Rally-Forbes.com

2010-02-05T06:02:00.000-08:00

The Dire Dollar Rally
Steve Schaefer, 02.04.10, 05:50 PM EST

The euro's slide against the greenback is bad news for U.S. stocks.
Sovereign debt worries in the European Union have helped the U.S. dollar break a multi-month downtrend and one technical analyst says the bullish trend in the greenback might mean trouble for U.S. stocks.

Read the article here:

Obama Warns of Double Dip

2009-11-18T08:14:00.000-08:00

President Barack Obama said during an interview with FOX News, that he's worried that spending too much money to help revive the economy could undermine a fragile U.S. recovery and throw the economy into a double-dip recession. What I believe he intends is to ignore the many political and economic voices, who say he should focus on the economy and drop the Health Care Reform. He added in the interview, that it's important to recognize that if the nation keeps adding to deficit spending through tax cuts or more stimulus spending, at some point people could lose confidence in the U.S. economy and that could lead to a double-dip recession.

Deficit spending is deficit spending. Does it matter whether it is on Health Care Reform or the economy? President Obama also told FOX News that his administration is weighing tax breaks that could encourage businesses to begin hiring again. How do you tax wealthy people and give tax breaks to businesses at the same time. Who is it that own the businesses?

My take is that if Obama predicts a double dip recession, we will have one. If he want to avoid the dread "W" recession, then quit scaring investors and undermining market confidence.

If you want to read the article you can find it here:http://news.yahoo.com/s/ap/20091118/ap_on_re_as/as_obama_economy

How to build wealth workshop

2009-11-11T13:31:00.000-08:00

Last night I went to a Rich Dad Poor Dad seminar in my area. It was interesting but since I had read a lot of the books already, not much was stated that I did not already know. The main reason for the seminar is to sell their 3 day intensive workshop on everything you ever wanted to know about making money, getting rich, investing, entrepreneurship, etc. The cost is $500.00, and I bought in as a training investment since I already have an LLC. They also will allow you for that price take a spouse or business partner. My wife would not care to attend and I have no business partner, or do I? Anyone wanting to become a partner in this business training please leave me a comment or email. I think it is worth it. If you have ever read any of Robert Kiyosaki's books, he is a very knowledgeable man. As they said in the seminar how much would you be willing to invest to become rich? Contact me and we can work something out.

A Good Week for Me

2009-08-19T13:19:00.000-07:00

As everyone was waiting for a big pullback this week the market just kept going. Target increased around $3/share yesterday and another $1 today before coming down a bit. Now that was an opportunity. I missed the bump up but shorted it on the way down and made a little bit of money.

I put a stock ticker on the left side of the page that you can used to get a quote and I also put the status of some I am working with in it. I will try to change the stocks presented as I change my portfolio. Especially if I start getting some traffic to this site. I need to put a web counter in, or you could just leave comments. If anyone would like to trade links and is interested in the stock market, leave me a comment with your address in it.

Lets go make some money!

Investment Strategies

2009-08-06T19:02:00.000-07:00

As the title implies, at this time I believe in a strategy that involves taking a long approach and investing in a few proven stocks and playing the short game and trading quite a few stocks. My father told me "It is just as good making a little money a lot of times". What he did not tell me was that it is much harder to become emotionally detached to your portfolio when trading short term. Today was not a particularly good day for me as far as stocks go, but I know that the longs will come back up. When short term speculative stocks pull back, I try not to panic. Everyday I learn something new. I did not learn this today, but when a trade starts going south SELL. At what point do you sell? 5% down, 10% down. That is up to you. You should have a strategy going in to a trade. I have my own strategy but I will save it for another post.