Monday, 4 September 2017

APVO: A Hostile Takeover Target

Last week on August 28th we suggested a buy on Fusion Telecommunications International, Inc. (FSNN) when it was trading a little over $2.00 upon news of the purchase of most of the operations of Birch Communications. Over the next several days, the stock rose briefly past $3.50, nearing the fair value of the deal at $3.85. While we think FSNN could be worth much more, we suggested that it was a good idea to take some money off the table after a strong 50%+ winner for our readers. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 281 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history.  If you would like to share this blog, make sure to use the URL "nasdaqnewsreports.blogspot.mx" as certain spam filters on social media don't let you post blogspot.com addresses.

FSNN was a winner from $2.00 driven by news that made it unambiguously undervalued and Aptevo Therapeutics Inc. (APVO) is a biotech stock in the exact same position. On the afternoon of August 31st, APVO announced the sale of one of its subsidiaries:

"On August 31, 2017, Aptevo Therapeutics Inc. (“ATI”), Aptevo BioTherapeutics LLC (“Aptevo BioT”), a wholly owned subsidiary of ATI, and Venus BioTherapeutics Sub LLC, a wholly owned subsidiary of Aptevo BioT (collectively, the “Company”), entered into an LLC purchase agreement with Saol International Limited (“Saol”).

Pursuant to the terms of the LLC purchase agreement, on the terms and subject to the conditions thereof, Saol will acquire all of the equity interests in Venus BioTherapeutics Sub LLC.  As a result of the acquisition, Saol will acquire the three hyperimmune products currently marketed by the Company:  WinRho® SDF for autoimmune platelet disorder and hemolytic disease of the newborn; HepaGam B® for the prevention of Hepatitis B following liver transplantation and for treatment following hepatitis B exposure; and VARIZIG® for treatment following exposure to varicella zoster virus for individuals with compromised immune systems (the “Hyperimmune Products”).  The purchase price is up to $74.5 million, including an upfront payment of $65.0 million and an additional potential milestone payment totaling up to $7.5 million related to the achievement of certain gross profit milestones. In addition, Aptevo BioT may receive up to $2.0 million related to collection of certain accounts receivable after the closing.  The closing of the transactions contemplated under the LLC purchase agreement is subject to certain customary closing conditions."




As a result, APVO rose 59% on September 1st to $2.11, but still closed below its open price of $2.42. This was similar behavior to FSNN on August 28th when it opened at $2.32, raced to $2.59 in early trading and then sold off to the low $2.00's before ending the day slightly below its open price at $2.29. Just like with FSNN, dumb day traders and shorters don't understand that APVO is unambiguously undervalued thanks to this news. Those type of people blindly short a stock because it went up over 50% without any regards to the reasons why. This gives us and all of our readers a second chance in a week to scalp another 50% or more as APVO heads to its true value over $3.00 just like FSNN did and squeezes out a bunch of silly shorts.

However, unlike FSNN which is undervalued thanks to what basically leads to a reverse takeover from Birch (and is therefore unlikely to have another M&A deal any time soon), APVO has become a hostile takeover target. The minimum cash payment to be received from the sale of the subsidiary is $65 million. Based on 21.42 million shares outstanding, that is $3.03 per share. The $7.5 million milestone payment would be worth up to an additional $0.35 per share, though the timing of that payment in unknown and not guaranteed so there must be some discount factored in. As of June 30th, APVO had working capital less long term debt of $31.7 million, Assuming another quarter burn rate of about $10 million to the end of September, there is another $1.00 per share worth of net short-term assets less debt already existing on the balance sheet.

APVO's net cash position upon closure of this sale is worth somewhere in the neighborhood of $4.00 per share. Some biotech companies do trade at discount to cash if there is a heavy burn rate and no near-term prospects. However, APVO is trading at a nearly 50% discount to cash and still has one revenue-generating product in IXINITY.

The run on this good news may have been impacted by a second 8-K released on August 31st, one which disclosed the termination of a License and Co-Development Agreement for MOR209/ES414. There is obviously a fear that the cash will be used up by APVO to develop this drug and the rest of its pipeline on its own and that the company will eventually need to finance.

This is where we believe that APVO is a prime target for a hostile takeover or at least the target of an activist shareholder seeking to maximize returns in the quickest and easiest way possible. A hedge fund would be willing to pay $3.00 or more per share and do the following:

  • Accept the $4 per share in net cash and short term assets along with gaining title over the $7.5 million in milestone payments. 
  • Sell IXINITY.
  • Sell the rest of the pipeline for whatever meager amount they can get and discontinue all R&D activities to eliminate the burn rate.
  • Lay off whatever staff might be left after selling each division. APVO has no off-balance sheet agreements that would subject the company to future cash outflows.
The value of doing these things would likely approach $5 per share and wouldn't be that hard to do. If the stock price doesn't move to at least $3 soon, watch for activist funds to try to take over. The market has had the long weekend to absorb this news and think about how undervalued APVO has become. Don't expect APVO to stay low for long.  


Disclosure: We are long APVO


If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.



Wednesday, 30 August 2017

FSNN: Continuing Its Run

Fusion Telecommunications International, Inc. (FSNN) rose 26% on Tuesday to $2.89 along with its 86% rise on Monday after it announced a definitive agreement to acquire Birch Communications' Cloud and Business Services Business. This is effectively like a reverse takeover as Birch shareholders will hold a majority of FSNN's shares once complete and most of Birch's business is going into the transaction. We first sent out an alert on FSNN around noon hour Eastern when it had pulled back to around $2.00 after an early morning spike. It looks like FSNN will run into the $3's today and our readers will be up 50% or more. Who knows how high the stock will go as you will see below fundamentally it is worth much more than $3.00 but it is always good to take bits of profit off the table at various levels while letting some of your position run. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 278 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history.

What's most important to traders and value seekers looking at FSNN after the move up over the last two days is that this deal still has a 33% upside from current prices as Birch valued FSNN at $3.85 per share as part of the transaction. However, the combined company itself could be worth close to $10 per share once the transaction is complete. Highlights of Monday's press release:



  • Fusion to acquire Birch's Cloud and Business Services business, including its customers, operations and infrastructure
  • Combined company is expected to have total pro forma annual revenue of approximately $575 million and more than $150 million in pro forma annual adjusted EBITDA, including anticipated cost synergies
  • Transaction is expected to be significantly accretive to Fusion's adjusted EBITDA immediately upon closing, generating positive free cash flow while dramatically reducing the company's overall leverage ratio, with net debt expected to be less than 4.0x pro forma adjusted EBITDA
  • Birch shareholders will exchange their equity position in Birch's Cloud and Business Services business, valued at approximately $280 million, for common equity of the combined company
  • All-stock transaction in which Birch shareholders will receive approximately 73 million common shares of Fusion valued at $3.85 per share, a premium of more than 200% versus the prior trading day's closing price, representing approximately 5x the pro forma adjusted EBITDA of Birch's Cloud and Business Services business including anticipated synergies
  • Combined company will serve more than 150,000 business customers throughout the United States and Canada, and will have strong distribution through direct sales, inside sales and more than 800 distribution partners
  • Significant opportunities for growth through cross-selling and upselling new services into the combined customer base
73 million FSNN shares will be issued to Birch shareholders which will represent 75% of the estimated 97.3 million shares outstanding. FSNN will also assume $458 million of Birch's debt. Cloud Services and SaaS companies had an average EBITDA multiple of 19.4 and Revenue multiple of 5.1 in 2016 (see pages 30 to 32 of this report).

With expected EBITDA of $150 million once this deal is complete, an EBITDA multiple of around half of the average of 10 would lead to an enterprise value of $1.5 billion. Subtract the $578 million of debt (Birch plus FSNN's debt and accounts payable of $120 million) and that leads to a $922 million market cap, or about $9.50 per shareAn EBITDA multiple of 19.4 would lead to a stock price of $24.00.

The revenue multiple at a $1.5 billion enterprise value would be 2.6 based on expected pro forma revenue of $575 million. Using a 5.1 revenue multiple would also lead to a stock price of around $24.00.

This deal clearly has very high upside beyond the $3.85 price of the shares to Birch. Watch for FSNN to continue its run over the next several days as people begin to understand this lucrative opportunity.

Disclosure: We are long FSNN


If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.



Monday, 28 August 2017

FSNN: 68% to 300%+ Upside After Deal With Birch Communications

Fusion Telecommunications International, Inc. (FSNN) rose 86% to $2.29 on Monday after it announced a definitive agreement to acquire Birch Communications' Cloud and Business Services Business. This is effectively like a reverse takeover as Birch shareholders will hold a majority of FSNN's shares once complete and most of Birch's business is going into the transaction. We first sent out an alert on FSNN around noon hour Eastern when it had pulled back to around $2.00 after an early morning spike. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel. We are up to 277 followers despite not giving out a lot of alerts, a fact that we think is indicative of a diligent and prudent stock picking history.

What's most important to traders and value seekers looking at FSNN after today's spike is that this deal still has a 68% upside from current prices as Birch valued FSNN at $3.85 per share as part of the transaction. However, the combined company itself could be worth close to $10 per share once the transaction is complete. Highlights of Monday's press release:



  • Fusion to acquire Birch's Cloud and Business Services business, including its customers, operations and infrastructure
  • Combined company is expected to have total pro forma annual revenue of approximately $575 million and more than $150 million in pro forma annual adjusted EBITDA, including anticipated cost synergies
  • Transaction is expected to be significantly accretive to Fusion's adjusted EBITDA immediately upon closing, generating positive free cash flow while dramatically reducing the company's overall leverage ratio, with net debt expected to be less than 4.0x pro forma adjusted EBITDA
  • Birch shareholders will exchange their equity position in Birch's Cloud and Business Services business, valued at approximately $280 million, for common equity of the combined company
  • All-stock transaction in which Birch shareholders will receive approximately 73 million common shares of Fusion valued at $3.85 per share, a premium of more than 200% versus the prior trading day's closing price, representing approximately 5x the pro forma adjusted EBITDA of Birch's Cloud and Business Services business including anticipated synergies
  • Combined company will serve more than 150,000 business customers throughout the United States and Canada, and will have strong distribution through direct sales, inside sales and more than 800 distribution partners
  • Significant opportunities for growth through cross-selling and upselling new services into the combined customer base
73 million FSNN shares will be issued to Birch shareholders which will represent 75% of the estimated 97.3 million shares outstanding. FSNN will also assume $458 million of Birch's debt. Cloud Services and SaaS companies had an average EBITDA multiple of 19.4 and Revenue multiple of 5.1 in 2016 (see pages 30 to 32 of this report).

With expected EBITDA of $150 million once this deal is complete, an EBITDA multiple of around half of the average of 10 would lead to an enterprise value of $1.5 billion. Subtract the $578 million of debt (Birch plus FSNN's debt and accounts payable of $120 million) and that leads to a $922 million market cap, or about $9.50 per share. An EBITDA multiple of 19.4 would lead to a stock price of $24.00.

The revenue multiple at a $1.5 billion enterprise value would be 2.6 based on expected pro forma revenue of $575 million. Using a 5.1 revenue multiple would also lead to a stock price of around $24.00.

This deal clearly has very high upside beyond the $3.85 price of the shares to Birch. Watch for FSNN to run over the next several days as people begin to understand this lucrative opportunity.

Disclosure: We are long FSNN


If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.


Value Trade Alert: FSNN Has Nearly 100% Upside After Reverse Takeover Of Most Of Birch Communications

Fusion Telecommunications International, Inc. (FSNN) is up around 60% today to around $2.00 as of noon hour Eastern time after it announced a definitive agreement to acquire Birch Communications' Cloud and Business Services Business. This is effecively like a reverse takeover as Birch shareholders will hold a majority of FSNN's shares once complete and most of Birch's business is going into the transaction. What's most important to traders and value seekers is that this deal has nearly 100% upside from current prices as Birch valued FSNN as $3.85 per share as part of the transaction but the combined company itself could be worth close to $10 per share once complete. Highlights are as follows:


  • Fusion to acquire Birch's Cloud and Business Services business, including its customers, operations and infrastructure
  • Combined company is expected to have total pro forma annual revenue of approximately $575 million and more than $150 million in pro forma annual adjusted EBITDA, including anticipated cost synergies
  • Transaction is expected to be significantly accretive to Fusion's adjusted EBITDA immediately upon closing, generating positive free cash flow while dramatically reducing the company's overall leverage ratio, with net debt expected to be less than 4.0x pro forma adjusted EBITDA
  • Birch shareholders will exchange their equity position in Birch's Cloud and Business Services business, valued at approximately $280 million, for common equity of the combined company
  • All-stock transaction in which Birch shareholders will receive approximately 73 million common shares of Fusion valued at $3.85 per share, a premium of more than 200% versus the prior trading day's closing price, representing approximately 5x the pro forma adjusted EBITDA of Birch's Cloud and Business Services business including anticipated synergies
  • Combined company will serve more than 150,000 business customers throughout the United States and Canada, and will have strong distribution through direct sales, inside sales and more than 800 distribution partners
  • Significant opportunities for growth through cross-selling and upselling new services into the combined customer base




73 million FSNN shares will be issued to Birch shareholders which will represent 75% of the 97.3 million float, along with the assumption of $458 million of debt. Cloud Services and SaaS companies had an average EBITDA multiple of 19.4 and Revenue multiple of 5.1 in 2016 (see pages 30 to 32 of this report).

With expected EBITDA of $150 million once this deal is complete, an EBITDA multiple of half of the average of around 10 would lead to an enterprise value of $1.5 billion. Subtract the $578 million of debt (Birch plus FSNN's debt and accounts payable of $120 million) and that leads to a $922 million valuation, or about $9.50 per share.

The revenue multiple at a $1.5 billion market cap would be 2.6 based on expected pro forma revenue of $575 million. This deal clearly has very high upside beyond the $3.85 deemed price of the shares to Birch. Watch for FSNN to run over the next several days as people begin to understand this deal. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel.


Disclosure: We are long FSNN

If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.



Wednesday, 26 July 2017

Isodiol: A Profitable Cannabis Company

On Sunday we recommended Isodiol International (LAGBF) which also trades in Canada under the symbol ISOL. The stock on both sides of the border rose over 20% on Wednesday. Since our recommendation, ISOL has risen from $0.23 to $0.30 CAD in three trading days. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel.



ISOL was up on a follow up announcement of Q1 results that confirmed profitability for the quarter:

"VANCOUVER, BC / ACCESSWIRE / July 26, 2017 / Isodiol International Inc. (CSE: ISOL) (OTC PINK: LAGBF) (Frankfurt: LB6A) (the "Company" or "Isodiol") a global cannabis innovator, specializing in the development of pharmaceutical and consumer products, announces the operational numbers of its wholly-owned subsidiary for the period from April 1, 2017 to June 30, 2017. Iso International LLC recorded unaudited fiscal Q1 profits of $897,596 based on revenues of $4,919,693 CAD.

Marcos Agramont CEO of Isodiol stated, "Demonstrating Q1 profitability is a major milestone for our company and our investors. The cannabis industry on a whole will be legitimized by demonstrating successful commercialization and operating in an environment which promotes the cannabis movement. We have developed product lines and brands which will generate revenues and profitability and now we're positioned to begin exploring additional expansion opportunities. Vertical integration, expanding product distribution channels and out-of-state manufacturing and processing are all opportunities we will aggressively develop and execute."

About Isodiol International Inc.

Isodiol International, Inc. is the market leader in pharmaceutical grade cannabis compounds and the industry leader in manufacturing and development of consumer products. Isodiol's nutraceutical division is the pioneer of many firsts for Hemp-derived cannabidiol (CBD), including 99% pure crystalline isolate, micro-encapsulation, and nano technology for the highest quality consumable and topical skin care products.

Isodiol's growth strategy includes the development of over-the-counter and pharmaceutical drugs, seeking joint ventures and acquisitions to expand its portfolio of brands and subsidiaries and will aggressively continue International expansion into Latin America, Asia and Europe."

The results are unaudited and will remain so until the annual report. Maybe some investors will remain skeptical until then as there could always be write-offs and accruals demanded by the auditors that could impact profitability on the entire year. However, this concern would be the same for all cannabis companies and microcap stocks in general when it comes to the quarterly results. The company is due to release its unaudited financials in the next few weeks so that will provide more clarity.



On Sunday we said that we believe that ISOL could be a $2.00 stock and figured it will be at least $1.00 by the end of the year. The following chart should provide more clarity around that. This chart compares ISOL to some of the most popular cannabis stocks trading in Canada. That is Canopy Growth Corporation (TWMJF), Aurora Cannabis Inc. (ACBFF), Aphria Inc. (APHQF), OrganiGram Holdings Inc. (OGRMF), Supreme Pharmaceuticals Inc. (SPRWF) and Emblem Corp. (EMMBF).

These are the last reported quarter results which we then annualized (multiplied by 4) to come up with their revenue and earnings multiples. We used this format because revenue is growing quickly for many of these companies and using the trailing four quarters would understate the current revenue run-rate. While this method may not be perfect and may not fairly present the investment case for each of the other companies listed, it clearly shows the investment case for ISOL. All figures are in $CAD. We took all this data from news releases or SEDAR filings manually (SEDAR is the Canadian equivalent to EDGAR) and we are human and might have made an error. So don't just take our word for it, compile this data for yourself.


ISOL has a revenue multiple of 2.6x. The next lowest multiple belongs to WEED at 25.8x, nearly ten times higher. The rest of the companies have revenue multiples above 40. ACB has the thinnest of profit margins but the rest have negative earnings while ISOL has an earnings multiple of 14.5x when Q1's great result is annualized. So while the other cannabis companies trade at very aggressive multiples because of the growing medical marijuana industry and movement towards legalized recreational use, ISOL is trading at valuations similar to a boring, old retail stock.

ISOL has similar revenue and higher profits to ACB and APH last quarter but it trades at barely over 5% of their market caps. Put another way, ISOL has to move 15-20 times higher, or $4.50 to $6.00, to align with those companies on a revenue multiple and will still operate at a higher profit level.

Does the market wish to give the major MMPR growers like WEED and ACB a premium versus something like ISOL which concentrates on CBD and cannabis-infused products? Perhaps. But is that premium justified at 10-20x? We think not. We think that the extreme discount for ISOL is from three factors, none of which are going to be permanent depressors of the stock:

1. It's a newly-formed company after Laguna Brands went on a shopping spree. So it is under the radar compared to Aurora and Canopy which are household names in the industry.

2. Some people may be waiting to see a full set of (unaudited) financial statements instead of relying on a press release to see if profits truly mean profits instead of something else (EBITDA or gross margins or comprehensive income). They may find it too good to be true that a cannabis company can have such a strong start at this early stage.

3. With all the acquisitions, the share count has risen substantially to 173 million over the last few months. Even though these acquisitions were very smart, it still has created a lot of cheap paper that needs to be absorbed by the market. That's okay, we absorbed more of that cheap paper upon today's news.

Disclosure: We are long ISOL on the Canadian Stock Exchange

If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.

Sunday, 23 July 2017

Isodiol: 10x Undervalued Cannabis Stock Inks Deals With Canopy

Before we get into our next pick, we need to briefly speak about Applied Optoelectronics (AAOI). On May 6th we initiated a strong buy call on AAOI with our article "AAOI: Eight Reasons To Expect This Tech Unicorn To Double By The End Of 2017" and the stock has been on fire, up over 60% to $90 since then. It hit as high as $95 last week before dropping after another short attack from BWS Financial.



BWS has already done this song and dance once before as our article on June 20th "AAOI: Strong Buy Price Target $250; Short Squeeze Imminent" will show. BWS called for a $25 price target while we called for a $250 price target. Since then AAOI has risen from the low $60's to $90 so that goes to show you how much of an expert Hamed Khorsand, head analyst at BWS, really is. Khorsand's rating on TipRanks has deteriorated in the month since the first time he pulled this scheme, with his success rate down to 45%:



How this analyst continues to get mainstream coverage while we have a much better track record is a mystery. We are up to 266 followers and we don't think that is by accident. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel.

Now onto our next pick. The marijuana industry has been lightning hot upon expectations of favorable government rulings for recreational use and increased open-mindedness over cannabis-based medicinal uses. The issue with a lightning hot industry is that the major players in that industry tend to trade at quite aggressive valuations. There may be one exception to that.

Laguna Blends (LAGBF) has recently gone on an acquisition spree. It has changed its name to Isodiol International to reflect its largest acquisition. This stock is listed on the OTC and we rarely pick OTC stocks. But you really don't have much of a choice when it comes to weed companies. Isodiol trades frequently on the Canadian Stock Exchange under the symbol ISOL. So it's not quite like the typical OTC stock. LAGBF closed at 18.74 US cents on July 21 and ISOL at 23 CAD cents. With 173 million shares outstanding, Isodiol has a US market cap of $32 million and $40 million Canadian.

What makes ISOL/LAGBF stand out as an OTC company other than the fact that it is dual-listed is that it can claim that is is EBITDA positive:

While these numbers are unaudited, $12 million in revenue and $1.6 million in Adjusted EBITDA makes it sound like ISOL is a steal compared to its peers with a trailing revenue multiple of 2.7x.

Furthermore, the consolidated company "recorded sales of $1,843,173 CAD for the thirty-day period ended June 30, 2017. Total quarterly sales were $4,919,693 CAD for the period April 1st to June 30th, 2017" according to a press release on July 11. If sales are $5 million CAD per quarter, ISOL is trading at a 2x revenue multiple.

Contrast this to Canopy Growth Corporation (TWMJF) (WEED.to) which has a market cap of $1.37 CAD billion. Revenue was $14.7 million in its last reported quarter and $40 million for the year. Canopy's trailing revenue multiple is 34x while Q4 equates to a $60 million annualized run-rate or a revenue multiple of over 22x. Canopy is growing very quickly, but so ISOL so it's difficult to imagine that ISOL is over ten times undervalued compared to Canopy. Especially in light that the two companies have recently announced a distribution deal:

"VANCOUVER, BC / ACCESSWIRE / July 20, 2017 / Isodiol International Inc. (CNSX: ISOL) (OTC PINK: LAGBF) (FSE: LB6A) (the "Company" or "Isodiol") a global cannabis innovator specializing in the development of pharmaceutical and consumer products is pleased to announce it has signed a licensing agreement with Canopy Growth Corporation ("Canopy") (WEED) (https://www.canopygrowth.com).

Canopy Growth is the world's premier cannabis company that operates a collection of diverse brands and curated strain varieties, supported by over half a million square feet of indoor and greenhouse production capacity. Under this licensing agreement, Canopy Growth will have the right to manufacture and distribute the Company's "Pot-O-Coffee" and "Pot-O-Tea" branded marijuana infused single serve K-Cup products in Canada and certain other markets internationally as federal regulations allow. Licensed products include caffeinated and de-caffinated product lines as well as Isodiol's single serve "Pot-O-Coco". In addition to the Canadian rights, Canopy Growth shall have the right of first refusal to sell the "Pot-O" brand products in any territory outside of the US, Mexico and Puerto Rico.

"This distribution agreement has us positioned to increase our global footprint with the largest cannabis company in the world. We will continue to develop our Pot-O-Coffee product lines with ready to drink and cold brew products while working with Canopy Growth for international distribution channels. The Pot-O-Coffee brand is well recognized, and adding additional products to this line will continue to strengthen its market presence," stated Isodiol's CEO Marcos Agramont.

The availability of the various licensed products in Canada and elsewhere will differ depending on applicable laws and regulation. While Canadian law does not yet permit the manufacture and sale of marijuana infused products, the Company anticipates that such products will be permitted in the near future. Furthermore, currently proposed regulations which would permit the sale of infused products, would not allow such products to contain both marijuana and caffeine. As such, the specific product offerings in Canada and elsewhere may be limited. The Company will provide additional updates as regulations are adopted and as product roll-out plans are developed."



ISOL's stock has been diluted over the past several months as the company has gone on its acquisition spree. Any investor can see that this is money well spent but it has also led to a buying opportunity as some may fear that the 12 cent shares will flood the market in a couple of months when the lock-up period expires. With a revenue multiple of 2x on an EBITDA positive business in a lightning-hot industry, a strong growth profile of cannabis-infused products and pure, natural CBD and a distribution deal with Canopy, ISOL looks like a slam dunk 10-bagger as long as the cannabis industry continues to get positive regulatory events. We think that ISOL can hit $2.00 in due time to properly reflect its value, but for now $1.00 should be a reasonable target before 2017 is up.

Disclosure: We are long ISOL on the Canadian Stock Exchange

If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017

Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.

Thursday, 13 July 2017

How To Make Money Investing In The Stock Market

If you're interested in making money investing or trading the stock market, here are some good resources to assist you. This includes technical analysis, investing in the weed sector, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies.

Marijuana stocks were lightning hot last year, the cream of the performance crop in the microcap sector. Microcap Millionaires can show traders how to make big gains in this sector as well as many others in the microcap and penny stock world.

Click Here for Microcap Millionaires Free Video: How To Score Up To 1,400% Gains With "Weed Stocks" in 2017



Learn How to Maximize the Dividend Return of Your Portfolio With Access to a List of the Top 100 Dividend Stocks

If you are interested in improving your investment returns through dividends then dividendstocksonline.com might be a useful resource for you. Their simple stock filter ranks each company's dividend by return and sector but the key to investing in dividend stocks is sustainability. The site provides additional information in order to help you make that determination such as 5-year dividend growth rate, 3-year income growth rate, payout ratio, 1-year return and DSO rating,

Additional benefits include:

  • The ability to get the top dividend ratings for stocks going ex-dividend each month so you know when to buy and sell them to collect as many dividends as possible.
  • Split your portfolio between safe dividends, growth dividends and high-yield DRIPs so you can better refine your risk vs return profile.
  • Finally, get REIT and international stocks' dividend ratings in order to diversify your portfolio. 

Click here for the dividend stock report from dividendstocksonline.com


Seven Proven Dividend Investing Principles, One Website

Dividend Stocks Rock follows seven principles in order to maximize the returns on dividends:

  • High Dividend Yield Doesn’t Equal High Returns
  • Focus on Dividend Growth
  • Find Sustainable Dividend Growth Stocks
  • The Business Model Ensure Future Growth
  • Buy When You Have Money in Hand – At The Right Valuation
  • The Rationale Used to Buy is Also Used to Sell
  • Think Core, Think Growth

You can find out more about these seven principles by visiting their website


Top-Rated Signals for Binary Options

If you're interested in trading options, both calls and puts on certain large cap stocks, binaryoptionsprosignals.com sends real-time trading signals on a select group of stocks, forex pairs and commodities. The site claims over 70% accuracy thanks to a combination of trading algorithms and technological advances which allow it to produce signals through predictive software.

The report currently sends out alerts on Apple, Google, IBM, JP Morgan Chase, Coca-Cola, ExxonMobil, Facebook, Alibaba, Dow Jones, and S&P 500. Click here for access to the top rated signals for binary options



The Top 15 Gold Mining Companies


There are a ton of gold stocks out there so it may be overwhelming for a novice or casual investor to figure out which stock is the best. This 250+ page investment report showcases the top 15 gold companies to invest in right now from an author who lives in South Africa, a top 5 country in the world when it comes to mining gold along with other minerals. His first hand experience being "on the ground" and "in the mining field" gives him special insight into the industry that regular investors may not have. Click here for the Goldmasterinvesting.com Ocean Of Gold Report





WallStreetWindow: Your Game Plan For Trading Gold

For anyone interested in trading gold and silver, WallStreetWindow's Gold Trading Program is a must-read.


TraderReview: Professional Daily Market Strategy Newsletter

Learn to trade stocks, options, commodities and forex profitably with Trader Review's  secret charting methodology with instant portfolio access to their picks.

Z Code System: For something a little different

Try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.