Thursday, 17 May 2018

Special Report: Insiders Buy Over $1 Million Of Stock

Usually we don't play stocks that have over a billion in market cap with Canopy Growth Corporation (TWMJF) (WEED.TO) being the notable exception. However one stock we found trading in Canada is particularly intriguing thanks to heavy insider buying and as a gap fill candidate on the charts. Note that we were recently very successful with our call on Prothena Corporation plc (PRTA) in our report titled "Breakout Alert: PRTA To Fill That Gap". That one moved quite quickly despite being over half a billion in market cap so we think this larger cap play can move fast too. We are up to 614 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 like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We are closing in on 3,000 followers on Twitter as well.

Element Fleet Management Corp. (ELEEF) (EFN.TO) trades at over a $2 billion market cap in Canada at around $6.00. It looks to be in the middle of a turnaround, having named James Forbes as new CEO along with the intention to shake up the Board. The company released Q1 financial results on May 15th which has been well received. EFN was trading at less than $5.00 as recently as May 11th. For the next two days it ran in excess of 10% (pretty good for a company of its size) and consolidated a bit before continuing its run today.  But the real key here is the insider buys:











The new CEO Forbes bought 200,000 shares yesterday at $5.77 along with another insider buying 50,000 shares. They likely bought yesterday at the first opportunity to buy shares after the blackout period for Q1 results was lifted. Forbes himself put over $1.15 million into the company and he did it AFTER the stock has already run quite a bit. This is a sign that he is very bullish on the company and expects it to run a lot more in the near term. This shake-up might be a sign that interested parties are trying to take over the company, but at a minimum it looks like Forbes' appointment will bring in funds interested in buying the stock, either as his direct contact or institutions that don't know him personally but like him running the company.

While Forbes bought high in comparison to recent prices, EFN was over $10.00 six months ago and over $8.00 three months ago. It has the potential to move back to those levels quickly, just look at the chart:































Recall what we said about gaps getting filled on the PRTA reports. Gap downs usually do get filled but you want to wait until the stock price rebounds to challenge the prior day high of the day of the gap down. For instance, a stock that gapped down on the threat of bankruptcy is likely not something you should play based purely on the expectation of a gap fill. But PRTA and now EFN are good rebound candidates because of the chart setup. There is a big gap to fill in EFN's chart from $8 to $6 from back in February. Now that it is challenging the $6 mark, this is an ideal time to expect a gap fill in short order. The Board change and the fact that the CEO bought over a million dollars worth of stock just reiterated this point.

Disclosure: We are long stocks listed in this report.

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


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.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com



Monday, 14 May 2018

ANFI: An Extreme Value Play

Since April 26 in our report titled "The Next VTVT-Like Runners And Buyout Candidates" and followed up by "Breakout Alert: PRTA To Fill That Gap" and "Breakout Alert: PRTA's Upward Move Is Accelerating", Prothena Corporation plc (PRTA) has been a featured top pick. After moving 44% from $11.79 to $17.01 during that time, we have decided to take profits on this trade. We still think PRTA can go higher and challenge the $20 mark, but think there are even better opportunities out there at this time so we are redeploying the capital elsewhere.  We are up to 612 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 like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We are closing in on 3,000 followers on Twitter as well.

One of those better opportunities is Amira Nature Foods Ltd. (ANFI), an extreme value play. All one needs to do to recognize the potential here is to have a look at some of ANFI's financial ratios:













ANFI's P/E is 3. Its forward P/E is 2.2. It trades at about one-third of its book value, with most of that book value being in current assets. There is heavy insider ownership and short shares outstanding is 1.85 million, or about 9% of the float. So there is some potential of a squeeze. EPS and revenue growth is reasonable. There is a target price of $6 from Jefferies from an analyst who has a good track record.

So what gives? Why is this stock so cheap? If you look at the Q1 balance sheet you can see some very interesting and large numbers:
























Accounts receivable is massive but shrinking. Inventory is massive and growing. There is substantial short term debt with costly interest although that is personally guaranteed by the CEO so that should give investors great confidence that the company expects it to be paid off eventually. Large inventories make sense because ANFI is a Basmati rice company and must hold substantial amounts of raw materials and finished goods as part of its distribution and growth plans. Accounts receivable being so large is not ideal, but at least it has been headed in the right direction this past quarter.

ANFI has been beat up since a short attack by a fund called Prescience Point in 2015. ANFI sued this short seller for defamation and won when the short seller's request to throw the case out was denied by the court. ANFI and the short seller settled out of court, with monetary terms undisclosed. Prescience Point no longer has any reports about ANFI on its website; you can see a big gap in reports between 2014 and 2016 when the firm usually has one up every couple of months.

In addition to this, ANFI has been through multiple audits since then and passed a forensic audit by BDO. It is much less likely to be a fraud than the average company out there that hasn't been subject to such an attack and its numbers so thoroughly scrutinized. But now it is even cheaper than before because management has not been communicating with the investing public very much lately, and not a lot of people are interested in rice companies. Until recently:


























For several weeks, ANFI has been drifting downward from over $4.00 on volume that was only a few hundred thousand each day. Then on May 10th the stock nearly halved to $1.65 on 1.9 million volume which is a lot for it, but still nothing volume considering the move down in price and that there was no news to justify it. ANFI then released its Q1 results the next day and that attracted a lot of attention as the numbers were okay, nothing special. But in the context of a $0.26 EPS for the latest quarter and $0.55 EPS for the past nine months, these numbers are very, very good for a $1.65 stock.























The market reacted accordingly with ANFI up 76% to $2.91 on 9.2 million volume. On Monday ANFI gave some of that back, closing at $2.54 on 1.7 million volume. There are very many traders and value investors with eyes on this stock now because of the discount price and higher volume, ourselves included. Given the increased exposure brought on by the volatility and volume and very obvious reason to invest - the P/E is less than 3 - we think that ANFI will return to where it was in fairly short order before the big tank last week. That means a stock price of at least $3.50 and maybe over $4.00. The financials certainly support a move to at least that high and the Jefferies target is $6.00. We recommend that readers keep a close eye on ANFI.

Disclosure: We are long stocks listed in this report.

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


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.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com



Saturday, 12 May 2018

Breakout Alert: PRTA's Upward Move Is Accelerating

On April 26 we released our report titled "The Next VTVT-Like Runners And Buyout Candidates" featuring Celldex Therapeutics, Inc. (CLDX) and Prothena Corporation plc (PRTA). CLDX was close to breaking out several times but could never quite pass through that mid-$0.80's mark which was key to getting to a larger breakout. It is down to $0.73 for a small loss. But PRTA has done exactly what we expected it to do. In our report from last week, "Breakout Alert: PRTA To Fill That Gap", we outlined why we believe PRTA will move quickly upwards. For a stock that trades at over a $600 million market cap it has. PRTA moved up 12% to $15.72 on the week but that includes a recovery from a drop to as low as $12.04 after a sell-off from the earnings announcement. That's on top of the 19% move we saw from $11.79 to $14.01 since April 26 for a 33% gain in total. We think it will challenge the $20 level in short order. We are up to 608 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 like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We are closing in on 3,000 followers on Twitter as well.

To fully understand the potential move forthcoming on PRTA, we need to understand what can happen to biotech stocks that tank on bad news then recover to a point above the day high on the day of the downwards gap. On April 10, vTv Therapeutics Inc. (VTVT) dropped nearly 80% after announcing Phase 3 study results that didn't meet endpoints. Not only that, but VTVT has negative equity on the balance sheet, so it looked very bleak for the company. That's when it shot up from $0.83 on April 16 to as high as $2.67 on April 18.

Why did VTVT have such a violent move up? Check out the chart and price history for clues:



































April 17 was key. VTVT shot up to $1.19 that day, above the day high of April 10 when it immediately tanked to $1.01 from the previous day's close of $3.26. Anyone who is familiar with basic technical analysis strategies knows the old adage that "gaps get filled", meaning that whenever there is a gap in the chart either to the upside or to the downside like what we see with VTVT, the price of the stock will return back to where it was prior to the big move, thus "filling the gap". Some data around this phenomenon suggests that over 90% actually do get filled in fairly short order.

Gap downs offer up a special case. Obviously a company that is going bankrupt and threatening to delist would be very, very risky to trade solely on expectations of a gap fill (sometimes it does happen, especially after the listing gets kicked to the OTC where it can be a lot more volatile). We believe that the key to finding a gap up candidate lies with what happened to VTVT on April 17, one day before its big move. It closed at $1.19 which was above the day high of $1.01 on April 10. You can see that quite clearly on the chart. The next day it proceeded to move to a day high of $2.67, almost closing the gap.

Looking at VTVT's price movement foreshadows what is happening and what may still be to come on PRTA. Check out PRTA's chart and price history:





























The day high on April 23 was $13.70, leaving a massive gap between that price and when the stock traded over $30. PRTA tanked after it announced that it will discontinue studies on a Phase III drug candidate. But it has since recovered to pass that $13.70 mark again and it has accelerated its move upward as evidenced by looking at the two large white candlesticks seen on the chart over the last two days. This mimics closely to what we see on VTVT, though it won't trade quite as wildly because PRTA's float and market cap are much higher than VTVT so the phenomenon is spread out over several trading days. At least a partial gap close to $20 seems reasonable, but who knows how high it can go given its unique and opportunistic chart situation. The failure of the phase III study is a negative event and PRTA should trade at a discount to where it was previously trading. But $16 is still too much of a discount.

In addition to the technicals that suggest a strong move up, PRTA has the fundamentals to support a higher stock price than $16. PRTA's Q1 balance sheet shows $433 million in cash and $100 million in accounts receivable against only $35 million in current cash liabilities. That is about $500 million in liquid net assets for a stock with a market cap of $626 million at $15.72. But that doesn't tell us the full story why PRTA makes a great buyout candidate.







Celgene (CELG) invested heavily into PRTA on March 20 with a $100 million upfront payment (the source of the accounts receivable) and $50 million share subscription at $42.57 per PRTA share. Reading the SEC filing on the exact nature of the deal, PRTA has a chance to earn up to $700 million each on three different neurodegenerative disease targets for up to a $2.1 billion payout from Celgene. That would give Celgene a lot of incentive to consider buying out PRTA at this low price. After all, CELG did just pay $42.57 for shares a little over a month ago. With PRTA trading at just above its liquid net asset value, why not make a larger offer now while it's this cheap? So watch for the buyout rumors to start swirling as PRTA gets onto more people's radars, because it makes a lot of sense right now. Although there is no guarantee that it will happen, sometimes it's just as good to get into a trade early before market sentiment pushes it up.

Disclosure: We are long stocks listed in this report.

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


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.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com



Saturday, 5 May 2018

Breakout Alert: PRTA To Fill That Gap

On April 26 we released our report titled "The Next VTVT-Like Runners And Buyout Candidates" featuring Celldex Therapeutics, Inc. (CLDX) and Prothena Corporation plc (PRTA). In a little over a week since then. CLDX has remained about steady, gaining one penny from $0.79 to $0.80. But PRTA has moved 19% from $11.79 to $14.01, highlighted by a 6% move on Friday. This move is particularly significant and we believe that a strong upwards move will be coming in the very near-term. We are up to 598 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 like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter @StockTradePicks. We are closing in on 3,000 followers on Twitter as well.

To fully understand the potential move forthcoming on PRTA, we need to understand what can happen to biotech stocks that tank on bad news then recover to a point above the day high on the day of the downwards gap. On April 10, vTv Therapeutics Inc. (VTVT) dropped nearly 80% after announcing Phase 3 study results that didn't meet endpoints. Not only that, but VTVT has negative equity on the balance sheet, so it looked very bleak for the company. That's when it shot up from $0.83 on April 16 to as high as $2.67 on April 18.

Why did VTVT have such a violent move up? Check out the chart and price history for clues:



































































April 17 was key. VTVT shot up to $1.19 that day, above the day high of April 10 when it immediately tanked to $1.01 from the previous day's close of $3.26. Anyone who is familiar with basic technical analysis strategies knows the old adage that "gaps get filled", meaning that whenever there is a gap in the chart either to the upside or to the downside like what we see with VTVT, the price of the stock will return back to where it was prior to the big move, thus "filling the gap". Some data around this phenomenon suggests that over 90% actually do get filled in fairly short order.

Gap downs offer up a special case. Obviously a company that is going bankrupt and threatening to delist would be very, very risky to trade solely on expectations of a gap fill (sometimes it does happen, especially after the listing gets kicked to the OTC where it can be a lot more volatile). We believe that the key to finding a gap up candidate lies with what happened to VTVT on April 17, one day before its big move. It closed at $1.19 which was above the day high of $1.01 on April 10. You can see that quite clearly on the chart. The next day it proceeded to move to a day high of $2.67, almost closing the gap. In fact, if you look at the chart now it looks like a nearly perfect downtrend, ignoring the gap down and temporary spike back up.

Looking at VTVT's price movement foreshadows what can happen with PRTA, particularly after its 6% gain on Friday. Check out PRTA's chart and price history:


























































The day high on April 23 was $13.70, leaving a massive gap between that price and when the stock traded over $30. PRTA tanked after it announced that it will discontinue studies on a Phase III drug candidate. But it has since recovered from hitting a low of $10.43 to close at $14.01, above that $13.70 mark. This mimics very closely to what we see on VTVT. We expect a massive upward move in an attempt to close the gap, but maybe not quite as extreme as VTVT since the float and market cap is a lot larger. The failure of the phase III study is a negative event and PRTA should trade at a discount to where it was previously trading. But $14 is too much of a discount.

In addition to the technicals that suggest a strong move up, PRTA has the fundamentals to support a higher stock price than $14. PRTA's balance sheet data from Yahoo Finance shows total cash per share and book value per share at $10.84 and $10.58 respectively, but this data as of December 2017 doesn't tell us the full story and what really makes PRTA a strong buyout candidate.


Celgene (CELG) invested heavily into PRTA on March 20 with a $100 million upfront payment and $50 million share subscription at $42.57 per PRTA share. Assuming some cash burn, that would add another $2-3 cash per share compared to the December numbers seen above. Reading the SEC filing on the exact nature of the deal, PRTA has a chance to earn up to $700 million each on three different neurodegenerative disease targets for up to a $2.1 billion payout from Celgene. That would give Celgene a lot of incentive to consider buying out PRTA at this low price. After all, CELG did just pay $42.57 for shares a little over a month ago. With PRTA trading at just above its cash value, why not make a larger offer now while it's this cheap? So watch for the buyout rumors to start swirling as PRTA gets onto more people's radars, because it makes a lot of sense right now. Although there is no guarantee that it will happen, sometimes it's just as good to get into a trade early before market sentiment pushes it up.

We also remain very bullish on CLDX. The stock hit as high as $0.84 on Friday but pulled back down to $0.80 on light volume in the last hour of trading. The $0.80's mark is proving to be a challenge to get through but the pressure is slowly building on the chart as we see below. If the stock passes $1.00, look for CLDX to also do a VTVT-like move to fully or partially close that gap. A move to $1.50 and a slow drift down from there would align CLDX's chart very closely to VTVT's so that is our price point target.































CLDX also has cash per share of $0.99 and book value per share of $1.71 so it has the fundamentals to support a move to at least $1.00. This data is from Yahoo Finance based on year-end 2017 results so there is likely some cash burn in Q1, lowering these numbers a bit, but still well above the current stock price:



Disclosure: We are long stocks listed in this report.

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


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.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com



Wednesday, 2 May 2018

Buying Undervalued Weed And Pharma Stocks

With April being behind us, we believe that the selling pressure on weed stocks has subsided and it is now good to go long. Canopy Growth Corporation (TWMJF) (WEED.TO) is challenging $30 in Canada again and while we said that we would revisit a long position after covering our short in the mid-$20's in April, we think that there is cheaper weed and pharma plays out there at this moment. We think that VANC Pharmaceuticals Inc. (NUVPF) (VANC.CN) presents a tremendous buying opportunity thanks to a distribution deal signed with Emerald Health Therapeutics, Inc. (EMHTF) (EMH.CN). Our picks from last week, Celldex Therapeutics, Inc. (CLDX) and Prothena Corporation plc (PRTA) have done well since calling them and we think are on the verge of breaking out in VTVT-like fashion. We are up to 595 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 like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter handle @StockTradePicks. We are closing in on 3,000 followers on Twitter as well.

More on VANC later, but first we would like to talk about our two biotech calls in "The Next VTVT-Like Runners And Buyout Candidates". There have been a lot of failed biotech stocks recently, dropping 50% or more in a day on bad news. On April 10, vTv Therapeutics Inc. (VTVT) dropped nearly 80% after announcing Phase 3 study results that didn't meet endpoints. Not only that, but VTVT has negative equity on the balance sheet, so it looked very bleak for the company. That's when it shot up from $0.83 on April 16 to as high as $2.67 on April 18. So anything can happen in this market. We believe that the market is ripe for recovery on beat up biotech stocks and that CLDX and PRTA make great long candidates. CLDX closed the day up over 2% today to $0.79 and has held steady from our buy-in point. PRTA closed at $13.18, up over 8% today. We think it is on the verge of a massive breakout:































The changing fundamentals notwithstanding after PRTA pulled its Phase III study, there is a massive gap between the high on April 23 of $13.70 and the $30's. There is no resistance until $32. Watch carefully for $13.70 to be broken, because if it does, PRTA could move violently upward just like VTVT did when it broke through the high of the day that it gapped down after bad news. It came close to filling the gap:




With PRTA being a much larger market cap company, we don't expect it to fill the gap. But we think that a move up to $20 is possible. CLDX has similar potential if it can break $1.05, though it is not as far along as PRTA is; it still has to break through the $0.80's first:































CLDX has cash per share of $0.99 and book value per share of $1.71 so it has the fundamentals to support a move to at least $1.00. This data is from Yahoo Finance based on year-end 2017 results so there is likely some cash burn in Q1, lowering these numbers a bit, but still well above the current stock price:

PRTA's balance sheet data from Yahoo Finance shows total cash per share and book value per share at $10.84 and $10.58 respectively, lower than the stock price, but this data as of December 2017 doesn't tell us the full story and what really makes PRTA a strong buyout candidate.


Celgene (CELG) invested heavily into PRTA on March 20 with a $100 million upfront payment and $50 million share subscription at $42.57 per PRTA share. Assuming some cash burn, that would add another $2-3 cash per share compared to the December numbers seen above. Reading the SEC filing on the exact nature of the deal, PRTA has a chance to earn up to $700 million each on three different neurodegenerative disease targets for up to a $2.1 billion payout from Celgene. That would give Celgene a lot of incentive to consider buying out PRTA at this low price. After all, CELG did just pay $42.57 for shares a little over a month ago. With PRTA trading not that much above its cash value, why not make a larger offer now while it's this cheap? So watch for the buyout rumors to start swirling as PRTA gets onto more people's radars, because it makes a lot of sense right now. Although there is no guarantee that it will happen, sometimes it's just as good to get into a trade early before market sentiment pushes it up.

VANC is different from these companies as it is a nanocap trading in Canada. It has only 31 million shares outstanding and a $7.5 million market cap so it can really move but unlike these other two companies doesn't have a lot of cash so it's not the balance sheet that makes it such a compelling play. It is the distribution deal with EMH:

"New joint venture, Emerald Health Naturals, secures exclusive Canadian rights to sell proprietary non-cannabis health products that support the human endocannabinoid system

Initiative leverages natural health product development, marketing and sales expertise of Emerald Health Bioceuticals, VANC Pharmaceuticals and GAB Innovations to establish brand and sales in strategic distribution channels

VICTORIA, British Columbia, April 17, 2018 (GLOBE NEWSWIRE) -- Emerald Health Therapeutics Inc. (EHT) (TSX-V:EMH) (OTCQX:EMHTF) (Frankfurt:TBD) launched today a multi-pronged program to market and sell a proprietary, award-winning non-cannabis line of endocannabinoid-supporting nutritional products in Canadian grocery, natural health product, and pharmacy stores. EHT has entered into a 51:49 joint venture, to be called Emerald Health Naturals (EHN), with San Diego-based Emerald Health Bioceuticals, Inc. (EHB). EHN has secured exclusive Canadian marketing and sales rights to EHB’s unique nutritional supplements, which use non-cannabis, non-psychoactive plant-based ingredients to provide potentially beneficial support to the body’s endocannabinoid system.

In this initiative, EHN has agreed to acquire the assets of GAB Innovations (GAB) and has granted non-exclusive sub-distribution rights to VANC Pharmaceuticals (VANC). Both GAB and VANC have established networks and a history of sales success in the natural health product and pharmacy channels. Gaetano Morello, ND, the founder of GAB, has been appointed CEO of EHN.

...

Granted VANC Pharmaceuticals Inc. (TSX-V:VANC) (OTCQB:NUVPF) a non-exclusive right to distribute EHN’s endocannabinoid-supporting products to Canadian pharmacies. VANC has a well-established sales team and key relationships with Canada’s largest pharmaceutical wholesalers as well as pharmacy and grocery chains. VANC will concurrently issue to EHN 3,030,303 warrants to purchase shares of VANC."

EMH is a licensed producer valued in excess of $500 million market cap. One thing to note about this collaboration is that EMH featured VANC prominently in its news release about the distribution deal. When news like this comes out, usually it's the smaller company that makes a bigger deal of it. EMH must think highly of this deal with VANC. When we compare the $7.5 CAD million market cap of VANC to the $550 CAD million market cap of EMH, it's easy to assume that the whale may want to swallow up the mouse or at least put a significant strategic investment into it.

Upon announcement of this deal VANC immediately spiked to $0.40 but in the two weeks since has drifted back down to the mid-$0.20's. Trading has picked up with VANC increasing 34% on 2.5 million volume on April 30, and it closing at $0.265 today, recovering what it lost on Tuesday's pullback. We think this is an ideal level to buy VANC as Canada marches towards legalization in a couple of months and the cannabis industry, including EMH, remain robust.

This news on VANC isn't quite as good as past weed-related stocks we have recommended like Snipp (see report), Pascal Biosciences (see report) or Isodiol (see report) but VANC's market cap and share float are also a lot smaller than any of those companies, so an investor has to keep that in mind. Snipp in particular has been frustrating as a wave of good news has occurred on it but the stock price has dropped to 11 cents, indicative of too much cheap paper out there. VANC won't have the same problem. VANC's stock price would need to triple to come to a similar market cap as SPN or PAS so there is plenty of room for upside. And there is massive upside if further news surrounding the deal between VANC and EMH show that VANC deserves to be trading at a market cap in excess of $25 million.

Disclosure: We are long stocks listed in this report.

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


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.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com



Thursday, 26 April 2018

The Next VTVT-Like Runners And Buyout Candidates

There have been a lot of failed biotech stocks recently, dropping 50% or more in a day on bad news. On April 10, vTv Therapeutics Inc. (VTVT) dropped nearly 80% after announcing Phase 3 study results that didn't meet endpoints. Not only that, but VTVT has negative equity on the balance sheet, so it looked very bleak for the company. That's when it shot up from $0.83 on April 16 to as high as $2.67 on April 18 and has still managed to maintain $2.00 today. We believe that the market is ripe for recovery on beat up biotech stocks and there are two in particular that make strong candidates for a run. Those are Celldex Therapeutics, Inc. (CLDX) and Prothena Corporation plc (PRTA). We are up to 588 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 like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter handle @StockTradePicks.

We will start with CLDX, where we really like the technicals. Check out the price history on VTVT:

































VTVT was in the $0.60's and $0.70's for a week but started to indicate a breakout on April 17 when it closed at $0.83, the highest price it had since the day of the tank. The next day it was off to the races.


Check out CLDX's price history:

























Just like VTVT, CLDX went from a multi-dollar stock and immediately opened at just over $1 and sunk to the $0.70's on April 16, leaving a massive gap. It too struggled for a few trading days but on April 26 it closed at $0.79 and hit as high as $0.81, indicative of a breakout. The trading on April 26 for CLDX is very similar to the trading in VTVT on April 12 when it closed at $0.80. It looks like a breakout on CLDX is imminent as it will challenge the open price on April 16 of $1.05 and will try to at least partially fill the massive gap above $1.00 like VTVT has done so far.

CLDX also has cash per share of $0.99 and book value per share of $1.71 so it has the fundamentals to support a move to at least $1.00. This data is from Yahoo Finance based on year-end 2017 results so there is likely some cash burn in Q1, lowering these numbers a bit, but still well above the current stock price:


CLDX has a larger float than VTVT so we don't expect as violent of a movement, but we think a target of $1.25 to $1.50 is reasonable over the next few trading days.

The next stock, PRTA, has a much more fundamental approach to its potential run, but even the price history suggests recovery as it closed at $11.79 on Thursday. It was up over 7% on lower sell volume, the best close since its fall on April 23.















PRTA's balance sheet data from Yahoo Finance shows total cash per share and book value per share at $10.84 and $10.58 respectively, a bit higher than the stock price, but this data as of December 2017 doesn't tell us the full story and what really makes PRTA a strong buyout candidate.


Celgene (CELG) invested heavily into PRTA on March 20 with a $100 million upfront payment and $50 million share subscription at $42.57 per PRTA share. Assuming some cash burn, that would add another $2-3 cash per share compared to the December numbers seen above. Reading the SEC filing on the exact nature of the deal, PRTA has a chance to earn up to $700 million each on three different neurodegenerative disease targets for up to a $2.1 billion payout from Celgene. That would give Celgene a lot of incentive to consider buying out PRTA at this low price. After all, CELG did just pay $42.57 for shares a little over a month ago. With PRTA trading at around its cash value, why not make a larger offer now while it's this cheap? So watch for the buyout rumors to start swirling as PRTA gets onto more people's radars, because it makes a lot of sense right now. Although there is no guarantee that it will happen, sometimes it's just as good to get into a trade early before market sentiment pushes it up.

Disclosure: We are long stocks listed in this report.

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The Cryptocurrency Codex from the Cryptocurrency Institute 

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The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

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Thursday, 19 April 2018

Short Aceto As It Heads Into Bankruptcy

Aceto Corporation (ACET) tanked 64% to $2.66 on Thursday on a very ominous press release "ACETO Board Takes Proactive Steps to Address Business and Financial Challenges". We were originally looking at this company as a long for a bounce play but settled as a strong short as it is very highly likely headed into bankruptcy after doing our research. We are up to 587 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 like our picks you can follow our blog by clicking the follow button on the top of the left hand panel. You can also follow us on Twitter handle @StockTradePicks. 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.

The first thing we would like to address is the appointment of Rebecca Roof as Interim CFO:

"The Board announced the appointment of Rebecca Roof as Interim CFO and the resignation of CFO Edward Borkowski, who has decided to pursue another opportunity. Ms. Roof is a highly experienced finance professional and a Managing Director at AlixPartners LLP. While at AlixPartners, Ms. Roof has served as Interim Chief Financial Officer of the Eastman Kodak Company, Atkins Nutritionals, Anchor Glass Corporation, Fleming Foods, and several privately held entities. Her pharmaceutical and specialty chemicals experience includes leadership roles at Taro Pharmaceuticals and LyondellBasell, also while at AlixPartners."

Every single one of those firms mentioned in the press release as places she worked at as "interim" CFO or in another capacity went through bankruptcy proceedings:

The pattern here is undeniable. Companies hire Ms. Roof as "Interim" CFO for the express purpose of going into bankruptcy and emerging as a new company with the old equity wiped out. That's why she is always interim. Once the job is done, she moves on. It's clear that ACET management sees the writing on the wall here and expects to be going into bankruptcy with the equity wiped out. ACET is foretelling it in the press release by telling everyone all the firms she worked at while the companies went into Chapter 11 bankruptcy. There may have been other firms she worked at that avoided that fate but the company didn't list those ones. 

Look at the balance sheet:



There is $617 million in liabilities, over half of it in the form of debt, against a billion of assets. At first glance, this is not SO bad. But this is an adverse industry that is very competitive and ACET is fully admitting that it is struggling to compete. The company in its own words said:

"ACETO Corporation (Nasdaq: ACET), an international company engaged in the development, marketing, sale and distribution of Human Health products, Pharmaceutical Ingredients and Performance Chemicals, announced, in light of the persistent adverse conditions in the generics market, it is negotiating with its bank lenders a waiver of its credit agreement with respect to its total net leverage and debt service coverage financial covenants in the fiscal third quarter, and that the financial guidance issued on February 1, 2018, should no longer be relied upon. In addition, the Company anticipates recording non-cash intangible asset impairment charges, including goodwill, in the range of $230 million to $260 million on certain currently marketed and pipeline generic products as a result of continued intense competitive and pricing pressures."

When we look at a company like this, we should only compare the liquid assets against the liabilities. ACET has only $64 million in cash and $477 million in current assets, well short of the liabilities. With Ms. Roof coming on board, the direction is clear. ACET is headed towards restructuring and the equity is headed to zero, or very close to it. Maybe ACET shareholders will get a small percentage of the restructured company. But this would be worth less than the $81 million market cap that ACET has right now. Look for an opportunity to short the stock to under $2, then re-evaluate from there.

Disclosure: We are short Aceto.

Bitcoin has gone from a concept worth pennies a few years ago to worth thousands of dollars. It may appear to some who are late to the game that the opportunity to get rich is gone. However, there are still plenty of ways to make some money trading in bitcoin and other cryptocurrency. Here are some links to valuable reports and strategies:

The Cryptocurrency Codex from the Cryptocurrency Institute 

Secrets To Unlimited Free Bitcoin 

The Crypto-Currency Evolution eBook

Bitcoin Complete Guide for Dummies

The Bitcoin Miracle Guide

The Bitcoin Cheat Code Book

The Crpytocurrency Course

Bitcoin Investing Live


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.

Microcap Millionaires Free Video: Cheap Gold Miner Set to Soar in Fall 2017

The dividend stock report from dividendstocksonline.com