Please note, VFC's Stock House has been monetarily compensated by JSDC LLC on 29 June to cover CDXC.OB for a period of 90 days. The fact that VFC has been compensated inherently indicates a strong bias on my behalf. The goal of this website and all articles published on my behalf is to provide investors with information, opinions, and starting points about various companies across many sectors. It's up to each individual investor to decide what he or she finds relevant.
Some stocks and stories worth watching this week:
(AMPE): Ampio has traded with some volatility over the past few weeks, but hasn't been hit as hard as other developmental companies during the latest round of the stock market storm. With quite a few catalysts due before the end of 2011- including the completion of multiple ongoing clinical trials - it's one to keep on the radar.
This company's strategy, as described last week at VFC's Stock House, is to reposition existing products to treat new indications, thereby eliminating the need for the extensive pipeline safety trials necessary when bringing completely new drugs to market.
With the possibility of entering multiple multi-billion dollar markets over the near to midterm, Ampio is one to keep an eye on.
Capstone's revenue, overall sales and new orders have been growing quarter-over-quarter, and a mention of the company by U.S. President Obama in Brazil over this year pushed the share price to over two dollars, although those recent highs failed to hold for long.
Shares were hammered after the last earnings announcement that came in just a bit under expectations, but the slide also coincided with the overall market dip and it's still worth noting that CPST carried a heavy short position for the better part of the year before falling to near the dollar mark.
Nothing has changed for the company in terms of potential, but investors are becoming increasingly anxious to see some evidence that profitability is just around the corner.
Already playing a large role in industrial activities around the globe, Capstone could be on the verge of staging an influx into the civilian arena as well, as the recent order from a hospital for one of its micro turbine units illustrates.
Many thought this one would at least hold the $1.50 mark after surpassing it in strong fashion early in the year, but the dip back to a dollar again makes this an attractive pick, in my opinion. Should market conditions take it even lower (it did trade in the sixties for a period of the past year), then I'd gobble it up.
(APRI): Shares of Apricus Biosciences have received a beating along with the market over the past few weeks, but some positive developments have been worth noting and may offer a hint that better times are ahead.
Last week the company announced that its wholly owned subsidiary, NexMed USA, had received clearance from the FDA to market its anti-fungal cream Tolnaftate-D, marking the first such clearance for its NexAct drug delivery technology.
This clearance is the validation that Apricus was seeking for its technology and marks an important milestone in the company's history as it opens the door for other over-the-counter (OTC) applications.
While making a huge stride on the validation front, investors are still waiting to hear about Vitaros partnerships, especially one for Canada where the erectile dysfunction treatment is due to be commercially launched later this year.
Recent statements by the CEO indicate that a partner for Canada is still in line to be announced over the near term, and manufacturing of the product is picking up its pace, but this story will need to be finalized to quell investor concerns.
With the recent dip, it's worth keeping APRI on the radar.
BAC, C, JPM: The last time the stock market crashed, the financials fell along with it, and this time it's starting to look like a repeat-of-form.
It's unlikely, in my opinion, that we'll see the huge discounts that we saw in 2008, but with Bank of America (BAC) trading well off its 52-week high and receiving some negative press due to a slew of upcoming layoffs, and with Citigroup (C) hanging out at its 52-week lows, it might be time to consider taking a dip in the financials again.
Both BAC and C are looking ripe for a buy.
Is there still risk in jumping into the financials right now? Of course, as the last round of market crash showed U.S. that confidence in the sector is waning and still being beaten up by the mortgage mess, but it was also a demonstration that the big boys can - and usually do - recover and come out sitting pretty.
Bank of America's layoffs, while worrisome for many, should be looked at as a positive as the company tries to trim costs and streamline profits. Most investors are impatient, they want results now, not later, and as a result these companies are living quarter to quarter. The goal is to make investors happy now, hence the mass layoffs and firings that come around to trim up the quarterly numbers.
BAC could come out on the flip side of this ordeal looking pretty trim on the numbers side, and once the dust settled - maybe some of those jobs will come back.
Citigroup and JPMorgan Chase (JPM) are also well worth keeping on the radar, as both could become good rebound stories once the fear created by the latest market dip has subsided.
On the ETF front, for those not looking to buy the individual financials, I still like the Financial Select Sector SPDR ETF (XLF), especially now that it's also trading for its 52-week lows. This one encompasses most of the major financials and trades well with the sector.
(GERN) (Geron Corp.): Tough to ignore this one trading in the mid $2 range. Still arguably the recognized leader in the future of stem-cell medicine, it's been quite a fall for this stock that traded at near a billion dollar market cap just a couple of years ago.
(CLDX) (Celldex Therapeutics): This cancer immunotherapy stock is half what it was just months ago.
(OTCQB:CDXC) (ChromaDex Corp.): Having just launched its first national brand in BluScience, and trading at significantly lower prices than just a month ago, shares of ChromaDex Corp. could be an attractive buy right now. The GNC launch will be followed-up by a move into other retailers and a national marketing campaign early next year, which should bring more attention to the company and its products.
(CVM) (Cel-Sci Corp.): The FDA wasn't too crazy about some of the wording on the company's website in relation to the Phase III head and neck cancer immunotherapy, Multikine, but the stock is now trading for forty cents with a market cap of under 100 million. Not bad for a company with a potentially huge Phase III product. There's always risk with an investment in cancer immunotherapy, however, with even Dendreon (DNDN) becoming vulnerable.
(HGSI) (Human Genome Sciences): Still one to consider while trading near its 52-week lows. It's down 10 bucks from its recent range.
The Market: Expect continued volatility, with a move down to the DOW 10,000 mark being a crucial marker. Should the DOW slip to below that point again, I'd expect even more panic selling and a repeat of the huge stock bargains that presented themselves in late 2008, early 2009.
Disclosure: Long CPST. VFC's Stock House has been compensated by JDSC LLC to cover CDXC for a period of ninety days. I am long AMPE, CVM, CDXC.OB.