WINDSOR, ON / ACCESSWIRE / November 2, 2015 / The Wealthy Biotech Trader (or “WBT”), an investment newsletter focused on showing everyday investors new opportunities in rapidly growing, little-known, biotech, pharma, medical device and general healthcare stocks making news and subsequent market moves, reports on several small cap stocks that have made significant moves over the past several weeks.
PositiveID Corporation (PSID) has seen its stock price move upwards quite nicely on the heels of some great news regarding a strategic and synergistic acquisition, Thermomedics.
Thermomedics was a valuable target to PSID because its product, the “Caregiver(R)” non-contact thermometer, seems to be a great complementary product to PSID’s soon-to-be-commercialized Firefly Dx unit. The Firefly Dx is a real-time, lab-in-hand solution to test for pathogens such as Ebola in under 20 minutes. For homeland security applications, a non-contact thermometer would be a great vetting tool to bring a potential high-risk patients to a secondary clearance for a further screening (with the Firefly Dx) for say, Ebola or any other spreadable threat. Based on our review of public announcements, it is clear that Thermomedics has a strong platform of distribution partners and GPOs to leverage its growth.
Thermomedics’ historical financials can be partially reviewed by the public as it has been owned by a public company named Sanomedics. By reviewing those disclosures and other market information we know it is a fully commercialized product with enormous potential. Traders should watch this ticker in the near future for updates on restructuring/ growth/ announcements, which could further move the stock. Primarily, investors have been watching PositiveID closely as it nears the end of R&D on the Firefly Dx and moves it towards commercialization. An ace in the hole for this Company would be a contract for Firefly Dx with a large multinational or Federal Government agency–PSID has proven they have the ability and connections to do just that as evidenced by their previous contracts with the United States Department of Defense and Department of Homeland Security as well as PositiveID’s joint venture on its commercialized M-BAND product with Boeing.
Wealthy Biotech Trader mentioned PSID on October 19th and it has since doubled and we would like to congratulate all investors who profited from the run.
Another name which has seen a drastic change is Applied DNA Sciences Inc. (APDN), but APDN moved in the opposite direction of PSID. APDN was the victim of an online report questioning the integrity and prospects of the firm. Thursday, October 29th the negative report sent the stock cratering to $2.74 from around $7.00 (-61%) per share the day before. The company has since responded to the allegations in the report (the typical rhetoric), and has basically refuted the claims. Typically, public companies do not comment on activities in the trading of their stock unless they are completely confident that what was said is false, and this may prove as one of those times. This Company has a very unique and durable competitive advantage with a very impressive management team, and this situation possibly provides a lucrative entry for savvy investors fairly close to its 52-week low on the back of some great earnings reports.
A wild move from $6.00 to $46.00 in Akari Therapeutics Plc (AKTX) in August has since retraced a bit down to $19. Not surprising coming from a ticker that regularly makes wild moves; in February AKTX fell to $10.00 from $60.00. Biotech stocks seem to have wild moves when they produce positive phase II results and when billionaires or successful venture capital funds make an investment. The recent move up was on the back of some “big hitters” in the biotech space making a huge investment, to the tune of $75 million. This money is likely to either create an insane amount of value on a new drug candidate or go up in smoke–that’s just how the game is played–just keep this one on your radar and pick which side of the next move you want to be on. For technical traders, this chart may choose to “fill the cart gap” it opened in February at $60.00–meaning the stock may create a technical rally to $60.00–but fundamentals always outweigh technical trades, so traders are cautioned to be careful.
Energy Recovery Inc. (ERII) shot up 220% on October 20th after announcing a $125 million, 15-year (just over $8M per year; accretive to the tune of +27% increase in sales from 2014) deal with Schlumberger (NYSE:SLB). ERII makes equipment for the oilfield that makes fracking more efficient for players like SLB, saving them money by lessening the wear and tear on the fracking equipment. In light of the severely depressing current climate of the energy industry, this deal may be quite telling for the value of the technology ERII is bringing to market–meaning, as spending is being slashed, huge companies like SLB need to have ERII’s technology so bad they found the money to secure it. Traders should watch for other deals similar to this with other oilfield service companies like Halliburton Company (NYSE:HAL) and Baker Hughes Incorporated (NYSE:BHI).
The Wealthy Biotech Trader is always researching new trade ideas which have the makings for large market moves. Traders are urged to follow our parent outlet, The Wealthy Venture Capitalist on social media (see below) to stay apprised. We are an anti-email media outlet, and as such will only be releasing our reports/ updates/ news through Twitter and Facebook as well as newswire.
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