Where To Invest in July 2017
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July 10, 2017 – Where To Invest Now Newsletter
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Market Strategies Newsletter Sample Issue
Where To Invest Newsletter
Balanced Investing Strategies To Make Money In Up Or Down Markets
A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)
Contributing Staff: Michael King, Charles Moskowitz
A Sample of the Where To Invest Now Newsletter
Information Our Members Get Follows
Investing Trade Alerts
Charles Moskowitz Discussion
Open Positions:
Long 10 SJM July 125 Calls
Long 4 QQQ July7th 138.50 Calls
Funds in Use $ 620.00
We missed the entry into the FAST puts as well as the WFM calls. FAST rallied up on Friday and I may try a higher strike price if it continues up tomorrow. I’ll be using the free texting service since it could go either way.
This past week was difficult to figure out with the US$ down and gold down with it. The Oil is in a world of its own and as I’ve said repeatedly in this space, it is a trading range from $43-$54. I think you can make money trading the crude using OILU on the upside and SCO on the downside. We are long OILU @ $16.48 looking for $20.50 to $22.50 on this rally. We’ll be using a stop after I see the open tomorrow.
The divergence in the NASDAQ big names and the S&P 500 and NYSE seems to be coming to an end. The “FANG” stocks precipitous decline could simply not be ignored this past week, but I expect them to rally a bit here. GOOGL, AMZN and NVDA are all oversold and at the bottom Bollinger Band, while AAPL and NFLX are also oversold but did not break the lows from the selloff 10 days ago.
Washington is like a bad joke with all these fools getting ready to take their summer break. I’d like to see what these losers would do if they had to stay in D.C. and actually work. Someone really needs to get Trump’s phone out of his hands and stop that stupidity. This week he goes to G20 and we’ll see if he can manage to avoid his typical embarrassing flubs and show some focus.
The market internals have not been excessively good on the up days or bad on the down ones and the A.A.I.I. sentiment survey has shifted solidly in neutral. We are now below historic levels in both bullish 29.7 (38 avg.), bearish 26.9 (30) with neutral way up at 43.4 (31 avg.). This puts the public solidly in the “I don’t have a clue” position. With these numbers and the ease with which the above mentioned big names can turn on a dime I’m still thinking new highs before 2380 S&P 500. That said, Monday is a half day and Tuesday we’re closed and it is officially summer, and volume and direction are always a question…CAM
Investing Trade Alerts Summary
$10,000 Trading Account Trade Table
DATE |
TRADES |
PRICE |
COST |
PROCEEDS |
RESULTS |
| 06/29 | Bought 4 QQQ July 7th 138.50 Calls | 0.90 | 360 | ||
| 06/28 | Bought 10 SJM July 125 Calls | 0.30 | 300 | ||
| 06/27 | Sold 5 SPY June 30th 243 Calls( 50% Loss Rule ) | 0.51 | 255 | 250 Loss | |
| 06/23 | Bought 5 SPY June 30th 243 Calls | 1.01 | 505 |
3rd Week expiration when the month is listed without a date
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MARKET Laboratory – Weekly Changes
Prices are copied from Barron’s Weekly and Yahoo Finance and may be incorrect.
| Dow
21,349.63 -45.13 -0.21% |
Nasdaq
6140.42 -124.83 -1.99% |
S&P 500
2423.41 -14.89 -0.61% |
Transportation
9563.73 +175-06 +1.86% |
Russell 2000
1415.36 +0.58 +0.04% |
Nasdaq100
5646.92 -156.19 -2.69% |
| Gold (spot)
1240.70 -15.5 -1.2% |
Silver July
16.568 -0.08 -0.5% |
Crude June
46.04 +3.03 +7.1% |
Heating Oil
148-31 +10.44 +7.6% |
Unleaded Gas
1.5137 +0.913 +6.4% |
Natural Gas
3.035 +0.084 +2.9% |
| VIX
11.18 +1.16 +11.6% |
Put/Call Ratios
S&P 100 68/100’s -74/100’s |
Put/Call Ratios
CBOE Equity 66/100’s +7/100’s
|
Bonds
153-22 -2-28 2.95% -0-02% |
10 Yr. Note
125-17 -1-07 2.28%+0-05%
|
Copper
269.90 +7.50 +2.9% |
| CRB Inflation
Index 174.78. 7.04 +4.2% |
Barron’s* Confidence
75.5 +1.6 |
S&P100
1067.71 -7.72 -0.72% |
5 YR Note
117-26 -0-16 1.82%-0.015%
|
Dollar
95.66 -1.64 -1.7% |
DJ Utilities
706.91 -18.36 -2.53% |
| AAII
Confidence Index
Average |
Bullish
29.7% -3.0%
38.4% |
Bearish
26.9% -2.0%
30.30% |
Neutral
43.4% +5.0%
30.96% |
M1 Money
Supply +6.14%
June 19th |
M2 Money
Supply +5.41%
June 19th |
* Component Change in the Confidence Index
M1…all money in hands of the public, Time Deposits Traveler’s Checks, Demand Deposits
M2.. adds Savings and Money Market Accounts both compared with the previous year.
Market Strategies Technical Information
SUPPORT RESISTANCE
S&P 500 2404 2500
NASDAQ (QQQ) 135.60 142.50
Trans 93.90 96.50
DOW 21,160 21,580
TLT 124.00 126.80
Fundamental Analysis Stocks To Buy with Stops
Using fundamentals the following are stocks to trade hypothetically. They have done well. We have taken numerous profits as indicated on the table below. In addition many have been stopped out with small losses. As indicated on the table below, balance is critical. And we have exited most positions.
Alibaba has made a few points. We are raising the stop loss price. We have no position in Alcoa AA. If long use a close below $32 as a risk point.
Flushing Financial FFIC fell to and held the 50 day price moving average on March 3rd, which was a buying opportunity. We would stay long the Flushing Financial.
We are not involved with Bristol Myers.
Hecla Mining is a buy as long as it is above the 13 day price moving average.
We took profits on ENZ but still want to buy at lower prices.
The HDGE may finally be oversold and relevant at this time. It is a decent long or offset against portfolio positions as long as it holds above $ 8.63.
| Symbol | Name | Business Description | PE | P/S | MV mln | Price | Buy or Sell Limit | Stop Loss
Or offset |
| BABA | Alibaba | Largest on-line book in China; more of a retailer than Amazon | 50.67 | 13.21 | 275.5B | 140.90 | Bought @ $ 111 on 4/7/17 opening | 126x |
| AMZN | Amazon | Catalog & Mail Order | 189 | 2.90 | 394B | 968 stopped out | Sell on stop | 976x |
| SIMO | Silicon Motion | Semiconductor solutions for mobile storage and communications | 9.7 | 2.5 | 1.39B | 48.23
Stopped out 49.40 |
Bought
39.10 01/28/17 |
49.40x |
| CIO | City Office
REIT |
Real Estate Investment Trust high quality Offices | 292 | 5.8 | 396Mln | 12.70 | Re Bought at 12.12 | 11.50x |
| TPC | Tutor Perini | Construction | 12 | 0.25 | 1.3B | 28.75
Stopped out28.90 05/04 |
19.40
10/31/16 |
Looking for place to buy |
| SAVE | Spirit Airlines | Discount Airline | 13 | 1.6 | 3.6B | 51.65 | 52.00 | Bought on a dip to $ 52 |
| BMY | Bristol Myers | Biopharmaceutical Products | 28 | 5.1 | 94.9B | 55.72
No position
|
Looking for place to buy
|
If bought sell at 53.90x |
| BA | Boeing | Aerospace, commercial jetliners, military systems | 14 | 0.85 | 81B | 197.75 | Long at
132 10/04/16 |
We would raise stops to $195 07/3 |
| HL | Hecla Mining | Basic Materials | 44 | 3.61 | 1.7B | 5.10
Look for re-entry |
Long at 5.30
5/5/17
|
A good long |
| FFIC | Flushing Financial | Bank Holding company Savings and loans | 13 | 3,5 | 592Mln | 28.19 | 19.10
06/27 |
50 day m.a. at 27.45 |
| AA | Alcoa | Aluminum Processing and Technology | N/A | 0.4 | 9.5B | 32.65
|
21.15 originally bought 2/8/16 | $ 28.90-29.10 support |
| ENZ | Enzo Biochem | Life Sciences | NA | 1.35 | 134M | 11.04 | Bought
at 5.13 10/7/16 |
Sold on Opening Monday 4/3/17
Sold 8.43 |
| BAC | Bank of America | Commercial Bank | 10 | 2.02 | 165.3B | 24.26
|
Bought at 15.42
9/30/16 |
23.60x stopped out on 3/21/17 |
| HDGE | Advisor Shares | Ranger Bear ETF | 8.56
|
Sell stop at 8.44 | Must close above 8.68 to be long |
Market Strategies Economic Data
The third estimate for first quarter GDP growth showed an upward revision to 1.4% from 1.2% which is the Briefing.com consensus, with personal consumption expenditures and exports increasing more than previously estimated.
The GDP Price Deflator was revised down to 1.9% from 2.2% (Briefing.com consensus 2.2%). Real final sales, which exclude the change in inventories, were revised up to 2.6% from 2.2% in the second estimate.
Gross private domestic investment added 0.60 percentage points to GDP growth versus 0.78 percentage points with the second estimate. That was due to a downward revision in nonresidential spending growth to 10.4% from 11.4%.
Personal consumption expenditures growth was revised to 1.1% from 0.6%, driving the contribution to GDP growth to 0.75 percentage points from 0.44 percentage points
Export growth was revised to 7.0% from 5.8%, driving the exports contribution to GDP growth to 0.82 percentage points from 0.69 percentage points. The net export contribution to growth was 0.23 percentage points compared to 0.13 percentage points with the second estimate.
The change in private inventories subtracted 1.11 percentage points from growth versus 1.07 percentage points with the second estimate. Government spending subtracted 0.16 percentage points from GDP growth versus 0.20 percentage points with the second estimate.
The key takeaway is that first quarter GDP growth was better than expected, but as the report from the BEA itself says, “…the general picture of economic growth remains the same,” which is to say it remains below potential.
| Category | Q1 | Q4 | Q3 | Q2 | Q1 |
| GDP | 1.4% | 2.1% | 3.5% | 1.4% | 0.8% |
| Inventories (change) | $2.6B | $49.6B | $7.1B | -$9.5B | $40.7B |
| Final Sales | 2.6% | 1.1% | 3.0% | 2.6% | 1.3% |
| PCE | 1.1% | 3.5% | 3.0% | 4.3% | 1.6% |
| Nonresidential Inv. | 10.4% | 0.9% | 1.4% | 1.0% | -3.4% |
| Structures | 22.5% | -1.9% | 12.0% | -2.1% | 0.1% |
| Equipment | 7.8% | 2.0% | -4.5% | -3.0% | -9.5% |
| Intellectual Property | 6.4% | 1.3% | 3.2% | 9.0% | 3.8% |
| Residential Inv. | 12.9% | 9.6% | -4.1% | -7.8% | 7.8% |
| Net Exports | -$595.6B | -$605.0B | -$522.2B | -$558.5B | -$566.3B |
| Export | 7.0% | -4.5% | 10.0% | 1.8% | -0.7% |
| Imports | 4.0% | 8.9% | 2.2% | 0.2% | -0.6% |
| Government | -0.9% | 0.2% | 0.8% | -1.7% | 1.6% |
| GDP Price Index | 1.9% | 2.1% | 1.4% | 2.3% | 0.5% |
The ISM Manufacturing Index checked in at 54.9 for May (Briefing.com consensus 54.7) versus 54.8 for April. A number above 50.0 indicates manufacturing activity on a nationwide basis is generally expanding. May was the ninth straight month the index has been above 50.0.
The New Orders Index jumped from 57.5 to 59.5. The Prices Index saw the biggest downturn in May, falling from 68.5 to 60.0. The pullback implies raw materials prices rose at a slower pace in May.
The Employment Index increased from 52.0 to 53.5; The Production Index dropped from 58.6 to 57.1 The Backlog of Orders Index fell from 57.0 to 55.0.
The only index with a sub-50 reading was the Customers’ Inventories Index, which increased from 45.5 to 49.5. The key takeaway from the report is that the manufacturing sector is still humming along in an expansion mode, paced by growth in new orders.
According to the Institute of Supply Management ( ISM) , the PMI for May, if annualized, corresponds to a 3.7% increase in real GDP annually based on the past relationship between the PMI and the overall economy.
| Category | MAY | APR | MAR | FEB | JAN |
| Total Index | 54.9 | 54.8 | 57.2 | 57.7 | 56.0 |
| Orders | 59.5 | 57.5 | 64.5 | 65.1 | 60.4 |
| Production | 57.1 | 58.6 | 57.6 | 62.9 | 61.4 |
| Employment | 53.5 | 52.0 | 58.9 | 54.2 | 56.1 |
| Deliveries | 53.1 | 55.1 | 55.9 | 54.8 | 53.6 |
| Inventories | 51.5 | 51.0 | 49.0 | 51.5 | 48.5 |
| Export Orders | 57.5 | 59.5 | 59.0 | 55.0 | 54.5 |
| Prices paid (not seas adj) | 60.5 | 68.5 | 70.5 | 68.0 | 69.0 |
Market Strategies Cycles
After narrowly bucking the trend of poor performance during the week after June option expiration week, by a little more than 10 points, DJIA and the rest of the market is stumbling early in the final week of Q2 and the beginning of the next six months. Tech stocks were a disappointment, while the small-cap stocks rallied to reclaim their 200 day price moving average. The IMF cut its growth forecast for the U.S. from 2.3% to 2.1% for 2017 and trimmed its 2018 outlook even more, from 2.5% to 2.1%. Debt, labor force participation, a 13.5% poverty rate and the increasing likelihood that meaningful policy changes would be slow to materialize were among some of the main drivers that led to this downtrodden outlook.
If the new administration, the majority party, fails to deliver on promises and if growth does not accelerate, then the market could be well – ahead of itself. This does not mean a recession and/or bear market is inevitable, it just means a near-term pullback or correction, which we are witnessing now, is more likely. It has also been 502 calendar days since the last S&P 500 correction of 10% or more which nearly equals the average duration between corrections since 1950 of 515 days.
According to the Stock Trader’s Analyst:
Psychological: Frothy. According to the most recent Investors Intelligence Advisors Sentiment survey bulls declined 3% to 29.7% in the prior week, bears slipped to 26.9% and neutral increased to 43.4% The DJIA, S&P 500 and Russell 2000 have effectively gone nowhere since March 1, as the market gets less help than was expected from the new administration. Most likely, anything coming from Washington now will likely be negative. The market’s patience is likely to runout while it waits for tax reform, healthcare overhaul, defense and infrastructure spending and many other campaign promises that are not being delivered. However, one must be ready to buy in the event they deliver.
Fundamental: Fuzzy. Atlanta Fed’s GDPNow model keeps lowering its GDP forecast for Q2 and the IMF also lowered its growth forecast for the U.S. for 2017 and 2018. Healthcare overhaul has not gotten done which is calling into question whether or not other major policy initiatives will ever get done. Not to mention the need for a Federal budget and the looming Federal debt ceiling. It would appear there is a larger than usual number of things Congress could either deliver or mess up this year.
Technical: Topping? Weekly NYSE Advance/Decline negative three weeks in a row, new NYSE Weekly Highs fading and new NYSE Weekly Lows expanding and major indexes taking turns at fractional new all-time highs all adds you to a stalled rally at best or a significant top at worst. NASDAQ led the charge higher since March 1, but it has faltered and is on the verge of closing below its 50-day moving average. If NASDAQ fails to find support, it will likely pull the rest of the market lower with it.
Monetary: 1.00-1.25%. At its June meeting, the Fed went ahead and raised its key lending rate. Based upon CME Group’s FedWatch Tool, the Fed is most likely done increasing rates until December. Have they sufficiently reloaded for the next economic downturn? Probably not, but within historical context, they are still highly accommodative leaving room for further improvement in the labor market and perhaps even nudging inflation a bit higher. The flattening yield curve is worth keeping an eye on.
Seasonal: Neutral. July is best month of the third quarter for the DJIA and S&P, but performance for the other two months, August and September, makes comparisons easy. Recent “hot” Julys in 2009 and 2010 have boosted July’s average gains since 1950 to 1.2% and 1.0% respectively. In post-election years, July is #1 for DJIA and S&P 500 and #2 NASDAQ, Russell 1000 & 2000, but many of the past “hot” post-election-year Julys were preceded by weak Junes. This has not been the case this year.
The pesky, eclectic Three Peaks and a Domed House Top Pattern (3PDH), may come into effect. We updated in the market letter last month as the pattern persists and is getting closer to possibly rolling over as we enter the teeth of the Worst 4 Months summer doldrums. ( July through October )
The updated 3PDH chart below continues to align with seasonal trouble and waning market readings. We have removed the question mark on point 15 and added points 16-19 and 22 for color and moved 23 to the June 19 high. The pattern is always evolving. If this 3PDH pattern does continue to develop and complete, points 1 through 20 look rather set.
Further evidence of a waning rally can be seen in DJIA’s recent weekly performance. DJIA’s best weekly advance was the last full week in May. Weekly gains have been tapering off since then (3). The Down Friday/Down Monday (4) that occurred at the end of May has been inconsistent and therefore not giving sell signals. Historically, sometime during the 90 calendar days after a frequent Down Friday/Down Monday occurrence, DJIA has registered a meaningful decline.
S&P 500 (5) and NASDAQ (6) are showing some signs of fatigue. S&P 500 has been up in four of the last five weeks, but the last two weekly gains have been marginal. NASDAQ appears to have switched from leading the market higher to now leading it lower. If it can find and hold support, NASDAQ’s Midyear Rally could still materialize.
NYSE Weekly Advancers and Decliners (7) are also painting an uncertain overall picture. Weekly Advancers have been outnumbered by Weekly Decliners for three straight weeks. If the majority of an index’s components are declining then there is an increasing probability that the index will decline.
NYSE Weekly New Highs (8) have also been choppy, peaking at the end of April at 544 while NYSE Weekly New Lows were at their highest level last week since the week ending November 18, 2016. Crude oil’s decline likely contributed to broader energy sector weakness,
Remain patient as the first half of July is historically bullish, but afterwards the worst-two-consecutive-month span, August through September, begins. There is plenty of time to select shorts.
Undervalued Small Cap Stocks
Lower priced stocks that look to be a buy:
Lower Capitalized Companies with Great Potential
RMS Medical Products ( REPR: $ 0.47 )* “RMS” or the “Company” is pleased to announce the launch of the RMS Freedom Flow Rate Calculator Smart Phone App (available for Android, and iOS). This App is designed to allow customers to more easily configure an RMS infusion system based on the drug being delivered. The App is an easy to use but highly complex calculator which will aid pharmacists, doctors and nurses in determining the proper RMS Precision Flow Rate Tubing™ and RMS HIgH-Flo Subcutaneous Safety Needle Sets™ to be used with either the FREEDOM60® or the FreedomEdge® Syringe Driver Infusion Systems. Nurses and Pharmacists often make critical decisions about flow rates/tubing and needle selections (size and number of needles to be used for infusion) in order to meet drug delivery protocols and patient desires for time of infusions. This new App will make it very easy to help the patient receive the best care possible.
This RMS Freedom Flow Rate Calculator Smart Phone App was developed for RMS with resources from ContraCare GmbH, a leader in Germany for Contract Management (reimbursement) Services and Managed Care (homecare) solutions. The App is now available for iOS in the AppleTM Store and Android in the GoogleTM Play store. Just go to your favorite store and type in RMS Freedom and you will be able to find and download this free user friendly app.
Torsten Kühn, Chief Executive Officer of ContraCare, commented “as a premium service provider in Germany’s health care system, we aim to partner with leading suppliers to provide the best drugs, medical devices and services to our patients while keeping an eye on the cost efficiency of the treatments we provide. The RMS FREEDOM60® system with its durable and reliable syringe driver and high-quality HIgH-Flo™ subcutaneous safety needle sets are exactly the products we needed for immunoglobulin, antibiotic and many other therapies we are providing today. We are glad that the umbrella organization of Germany’s public health insurance confirms the unmet need by approving the RMS FREEDOM60® System for reimbursement.”
Eric Bauer, Chief Operating Officer of RMS commented, “It can take 12 to 14 months to obtain country registration; by partnering with a leading health care provider, that time was cut significantly. Contra Care is an exceptional partner and we could not be more pleased with our relationship. Germany is going to be a great market for our high quality products and our ever expanding product line. RMS continues to be the Global industry leader and create exceptional partnerships around the world to improve patient quality of life.”
RMS Medical Products is the leading manufacturer of medical products used for home infusions and suctioning. The Infusion product portfolio currently includes the FREEDOM60® and our latest Freedom Edge® Syringe Infusion Drivers, RMS Precision Flow Rate Tubing™ and RMS HIgH-Flo Subcutaneous Safety Needle Sets™. These devices are used for infusions administered in professional healthcare settings as well as at home. The Company’s RES-Q-VAC® line of medical suctioning products is used by emergency medical service providers in addition to a variety of other healthcare providers. The Company’s website may be visited at www.rmsmedicalproducts.com.
Contra Care GmbH, based in Nuremberg, Germany, is specialized in providing Contract Management (reimbursement) Services and managed Care (homecare) solutions for patients with chronic diseases. The company is certificated in accordance with ISO 9001, ISO 27001, ISO 13485 and licensed as a homecare provider of medical devices and treatment services according to German Social Law (SGB).
Enzo Biochem ( ENZ: $ 11.04 )
Enzo Biochem closed the calendar year 2016 at $6.94 a share. For the year of 2017, it is up 66.3% versus the Dow Jones +8.3%. Enzo’s balance sheet closed their first quarter October 31 with $67 million in cash and current equivalents and complete elimination of debt. Both the Clinical Lab and Life Science divisions ended the year profitably. New products were added to their catalog and litigations have moved ahead leaving them as a plaintiff with 6 lawsuits in the Delaware Court and one in the Manhattan Court.
Enzo Biochem closed today, June 30, at $11.04. For the quarter it was up 31.9% and for the first half it was up. 59.08%. The Standard and Poor 500 closed at 2,423 up 2.57% for the quarter and 8.24% for the first half. The stock has been acting great and I hope it continues for the second half of the year.
A quick rundown of the year so far: The Company announced its fiscal 3rd quarter a few weeks ago. For the first time in many years they showed a breakeven third quarter and no cash burn. They actually increased the cash position by $200,000. I see no reason that this performance will not continue for the rest of the year.
Three new AmpiProbe products were announced as being approved by the New York Department of Health with more approvals anticipated over the near future. As was announced in the conference call on June 11th; the Company anticipates a product rollout to the market in early fall. They will expand their market to include New England and the Atlantic States.
With Enzo now being included by Cigna for reimbursement I would expect to start seeing the top line numbers for Revenues ramp up. The Company also hopes to have blanket approval in all states by the end of the year. In the 2nd quarter conference call a question was asked by the Rodman Renshaw analyst about Alequel for treatment of Crohn’s disease. The response by Mr. Weiner was that there are discussions with Hadassah Hospital where the trials were held a few years ago. Crohn’s and Uveitis are not in the stock price and if any news comes out on either of these products I feel it would have a very positive effect on the price of the stock.
The stock should consolidate its gains over the near term and as product approvals come in and AmpiProbe moves into the market, the stock price could move to $15. Positive news on the Therapeutics could move it much higher. There is very little stock available Institutional ownership is stated to be 61.47% and the Officers, Directors and insiders would be an additional 15% to total 76% of the 46 million shares or 35 million shares leaving 11 million in the float. Enzo’s market cap is now over $500 million which will make more Institutions that have a minimum market cap of $500 million to be buyers of a stock. Barring any unforeseen events I think we should have a very good second half of the year.
Updates on Delaware Litigation
The last earnings report showed a cash position in excess of $65 million with no debt to speak of and a positive cash flow from their operating divisions. The only cash burn is coming from Litigation expenses and a bit from Research and Development. Litigation in Delaware is on a contingency basis as such Enzo is not on the hook for billable hours. To my knowledge there are 6 suits left after 6 have settled.
When the company passed the $ 500 million dollar market cap when the stock price reached ($10.63) they qualified for those Institutions that can’t buy microcap stocks. A significant number of Institutions will look to be buyers and with only 47 million shares issued and Institutions already owning 50% and insiders owning 15% that leaves less than 17 million shares in the float.
Pressure Bio Sciences OTCQB: PBIO 7.40* Recently announced the signing of a new CFO Mr. Joseph L. Damasio Jr. Mr. Damasio has over 20 years of finance and accounting experience most recently as Finance Director at Nelipak Packaging, a private equity backed medical packaging manufacturer with over $ 100 million in global annual sales. Before joining Nelipak, Mr. Damasio held financial positions at CP Bourg, IQEKC, and Kopin Corporation. Mr Damasio was employed by Pressure BioSciences as both accounting manager (2007) and controller (2008) and finally as Vice President of Finance and Administration (2011).
The hiring of Mr Damasio will allow the Company’s CEO Mr Richard T Schumacher, who has been the company’s interim CFO for the past two years, and who has been a successful serial life sciences entrepreneur with three successful publicly traded companies to his credit, time to focus on critical operational issues in 2017. Some issues to be attended to include a pending up-list to NASDAQ and their stated goal to build a field sales team this year.
PBIO Develops, markets, and sells proprietary laboratory instrumentation and associated consumables to the estimated $6 billion life sciences sample preparation market. Products are based on the unique properties of both constant (i.e., static) and alternating (i.e., pressure cycling technology, or PCT) hydrostatic pressure. PCT is a patented enabling technology platform that uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels to safely and reproducibly control bio-molecular interactions. To date, they have installed over 250 PCT systems in approximately 160 sites worldwide. There are over 100 publications citing the advantages of the PCT platform over competitive methods, many from key opinion leaders.
NEEDS IN MEDICINE: In the world of medicine our dramatically improved ability for early detection or to confirm and refine diagnosis ranging from over a hundred types of cancer to tuberculosis and a hundred other maladies and conditions is “bottlenecked” by 30 year old methods of preparing test samples. Collectively such diagnostic samples exceed a hundred million annually.
NEEDS IN RESEARCH: Globally there are over a half a million medical and pharmaceutical research scientists working in over eighty thousand laboratories who are hampered by the time consuming and outdated methods of preparing test samples.
NEEDS IN FORENSICS: Globally, in millions of cases, swift and sure exoneration of the innocent and / or justice for the guilty is often delayed or even denied because of the ponderous means of preparing and conducting DNA and other forensic testing.
PBIO is focused on solving the challenges of biological sample preparation, a crucial laboratory step performed globally by the biological life sciences research scientists. Sample preparation refers to a wide range of activities that precede most forms of scientific analysis. It is often complex, time-consuming and, in our opinion, one of the most error-prone steps of scientific research. Sample preparation is a ubiquitous laboratory undertaking – the requirements of which drive a large and growing worldwide market. PBIO has developed and patented a novel, enabling technology platform that can control the sample preparation process while improving both efficacy and quality. It is based on harnessing the unique properties of high hydrostatic pressure. This process, called pressure cycling technology, or PCT, uses alternating cycles of hydrostatic pressure between ambient (normal atmosphere) and ultra-high levels i.e., 35,000 pounds per square inch (“psi”) or greater to safely, conveniently and reproducibly control the actions of molecules in biological samples, such as cells and tissues from human, animal, plant and microbial sources.
The PBIO pressure cycling technology uses proprietary and internally developed instrumentation that is capable of cycling pressure between ambient and ultra-high levels at controlled temperatures and specific time intervals, to rapidly and repeatedly control the interactions of bio-molecules, such as deoxyribonucleic acid (“DNA”), ribonucleic acid (“RNA”), proteins, lipids and small molecules. Their laboratory instrument, the Barocycler®, and their internally developed consumables product line, which include Pressure Used to Lyse Samples for Extraction (“PULSE”) tubes, and other processing tubes, and application specific kits such as consumable products and reagents, together make up their PCT Sample Preparation System (“PCT SPS”).
The PBIO pressure cycling technology takes a unique approach that has the potential for broad use in a number of established and emerging life sciences areas, which include:
- Biological sample preparation in potentially thousands of research laboratories worldwide working in human, animal, plant, and microbial diseases and disorders – including but not limited to sample extraction, homogenization, and digestion in genomic, proteomic, lipidomic, metabolomic and small molecule study areas;
- Pathogen inactivation (useful in vaccine development, infectious disease research, and more);
- Protein purification, and in the control of chemical reactions, particularly enzymatic (useful in drug design and development);
- and immunodiagnostics (useful in the development and detection of biomarkers).
INTELLECTUAL PROPERTY
PBIO has secured their technology through fourteen issued United States patents and ten issued foreign patents covering multiple applications of pressure cycling technology in the life sciences field. They also have additional patents pending. Research indicates that Pressure Bio Science, Inc. is the only company globally to have patents in this new science sector.
NightFood, Inc. (NGTF 0. 207 )* Has healthy night-time food specially formulated for nighttime snackers. The Company has an exclusive agreement with RFI, natural ingredient manufacturer and proprietor of Chocamine, a patented cocoa extract which helps with cravings and mood (calmness), and promotes feelings of satiety.
Americans keep gaining more weight. People have the tendency to grab for goodies at the end of the evening as they relax to enjoy some T.V. Eating and snacking too late at night is a contributing factor to gaining weight. Seventy percent of adults, ages 18-54, snack in the hour or two before bed. Chocamine delivers the health benefits of chocolate to the body (amino acids, minerals and polyphenols) without the added sugars, caffeine or fat.
People give in to the intense hunger cravings that leads to the consumption of sugary, salty or calorie dense foods to satisfy their appetite and cravings. Most of the snacks that people typically eat can impair sleep, causing a person to wake up feeling unrested. Night Food offers better-for-you alternatives to high-calorie and sleep disruptive junk foods.
The company product line currently includes snack bars in two flavors, either Cookies and Dreams or Midnight Chocolate Crunch. The company recently reported that it is looking into expanding the number of flavors in the Night Food bar line, and also manufacturing products in different snack formats, like ice cream or “bites”
Consumers spend over $50 billion/year on night-time snacks…over $1B every week. In general, snacking trends have shifted much healthier over the past several years, but industry research continues to show that the least healthy choices of the day occur as we get closer to bedtime. In fact, the four most popular nighttime snack categories, in order, are salty snacks (chips, pretzels, popcorn), ice cream, chocolate candy, and cookies.
Management believes that, just as there are energy versions of many popular foods (energy jerky, energy candy, energy waffles, energy gum, energy chips, energy bars), foods can also be formulated to be more nighttime appropriate and sleep-friendly.
We’ve seen it happen with low-carb, we’ve seen it happen with gluten-free. Can it happen with nighttime snacking as well?
Leo Motors (LEOM: $ 0. 106 )* has patents for the electric battery industry which we will be writing about in upcoming weekly reports. They have developed a lithium battery that can operate vehicles in sub-zero climates. Their subsidiary LGM has developed battery technology supported by the Korean government to make it possible to use electric battery technology for fishing boats. They have a cartridge system which is a light-weight replacement method of swapping electric batteries.
Fishing has been harmed by the noise and oil leaks from internal combustion engines. LGM has solved that problem and besides eliminating the toxic problem, operating costs are reduced by 25%.
In addition they have a special patent for averting electric hazards and shocks. Leo developed the Internet of Things for e-boats which is networked and connected with an Android Operating System. Leo’s power supply system is CAN (Controller Area Network) based, which enables mobile diagnostics between mobile devices and boats using the Leo technology.
Leo is developing a battery swap system for Kalmado in Puerto Princesa, Philippines, a world famous tourist attraction, which is focused on green energy. They will be converting 100 boats as the environment is expected to become 100% free of the toxicity from internal combustion engines. Also, Leo has developed a battery swap system for Go-Karts to be used in malls in China, Korea and Myanmar. Leo Motors has a new carbon nanotube battery power pack that functions and supplies full power in extreme low temperatures such as below 49 degrees without the need for grid electricity.
Skinvisible ( SKVI: $ 0.02 )*
Skinvisible Pharmaceuticals, Inc., (OTCQB: SKVI), is a pharmaceutical technology company that has developed over 40 topical prescription (Rx), over-the-counter (OTC) and cosmeceutical products using its patented Invisicare® polymer delivery systems. Invisicare and its products are protected by fourteen patents worldwide. Skinvisible licenses these products to global pharmaceutical, cosmetic and consumer goods companies.
SKINVISIBLE ENTERS THE CANNABIS MARKET
The cannabis market that Skinvisible has entered is vast and one of the fastest growing markets. The legal marijuana industry (medical and recreational) in the USA has reached over $6 billion in annual sales and is expected to increase to over $20 billion by 2020. Canada is projected to reach up to $22 billion annually as it has passed both medical and recreational marijuana laws this past year. Skinvisible is perfectly poised to be a part of this expanding market. It is part of the ancillary cannabis market as Skinvisible does not sell or touch cannabis; it sells its proprietary Invisicare polymers coupled with proven product formulations and services to its licensees. Skinvisible will help bring science-based, patent protected products into this emerging industry. The Company has developed topical and transdermal cannabis products from hemp-derived CBD; with its next developments to include cannabinoids from marijuana (CBD and THC).
SKINVISIBLE RECEIVES FIRST ORDER FOR CHINA
The Company just recently announced that it has completed its first international sale of DermSafe® hand sanitizer through its agent InterSpace Global, Inc. (“InterSpace”). InterSpace is an exporter of “made in USA” products with offices in Salt Lake City, Utah and Shenzhen, China. InterSpace has completed its first sale of DermSafe® with a direct sales company in Shanghai, China. Skinvisible management attended the launch of DermSafe in Shanghai, China, with 1200+ distributors in attendance. China with a population of over 1.4 billion people is one of the fastest growing economies in the world and represents a huge market for Skinvisible products, not only for DermSafe hand sanitizer but also the OTC line of products including anti-aging skincare line.
Rule 17B Attestations and Disclaimers
Princeton Research, Inc. has approximately 2,581,578 shares of AIVN both free and restricted and represents them for Investor relations. Princeton also has about 40,000 shares of TXGE. Princeton is paid $ 1,500 per month from RMS Medical Products. Princeton has bought 81,100 shares of RMS Medical Products. Princeton was paid $ 2,500 to write a report on Xinergy. Princeton has signed a contract with CBLI to be paid $ 2500 for July and August for investor relations. Princeton has been engaged by Target Energy. No contract is currently in place. Princeton was paid about 500,000 restricted shares of Leo Motors.
When there is no movement in penny stocks, even though there is none or very small losses, we will liquidate ( sold AIVN on stop ) even though we like the company, if money is needed for better opportunities.
We now believe REPR represents upside opportunity. The Target ADR trades at about $ 4.50 in U.S. vs 0.05 in Australia. Princeton owns 400,000 Australia shares and about 900 U.S. ADR’s.
Pursuant to the provisions of Rule 206 (4) of the Investment Advisers Act of 1940, readers should recognize that not all recommendations made in the future will be profitable or will equal the performance of any recommendations referred to in this e-mail issue. Princeton may buy or sell its free-trading shares in companies it represents at any time.
CONTACT
Please Direct All Inquiries To:
Mike King
(702) 650-3000