Here are the top ten reasons I think Star Scientific (CIGX) is headed much higher over the coming weeks and months.
10. Physicians are starting to learn that Anatabloc is the real deal. It stops the transcription of Nuclear Factor-kappa B (NF-kB) and reduces inflammation in the body. In my area, several doctors I know have ordered samples. They have taken Anatabloc themselves and they have given samples to patients. They are now believers and are accumulating shares of CIGX. Doctors have deep pockets and big retirement accounts, and they are investing in CIGX. I assume this activity will pick up due to reason #8.
9. The FDA is now going to require the individual ingredients in tobacco to be on the tobacco product labels. That means Star's tobacco curing patents are worth more because they reduce the tobacco specific nitrosamines (TSNA) carcinogens in tobacco (which will soon have to be listed on the label).
8. Doctors who have been studying the effects of Anatabloc (anatabine citrate) are attending medical conferences this spring and summer and giving papers that will generate more and more excitement about the various uses of Anatabloc. For example, Dr. Paul Ladenson (Chairman of Dept. of Endocrinology at Johns Hopkins) has been closely involved with Anatabloc testing. He has a presentation at the AACE conference next week in Philadelphia. His presentation is on Friday May 25th and it is on Hot Topics in Thyroidology. I am guessing that Anatabloc will be one of those "hot topics," since he has already publicly stated that Anatabloc stops thyroiditis.
7. The USPTO (US patent and Trademark Office) just recently granted Star a new Below Detectable Levels (NYSEMKT:BDL) patent on TSNA reduction. This is a brand new patent (not a continuation patent), so the patent priority date is 2012 and it should be good until 2032. If tobacco companies want to use this technology, they will have to license it from Star or face significant liabilities in litigation. The first company to license will have a significant marketing advantage as could be seen near the end of this RJR conference call transcript in the question by the Oppenheimer analyst.
6. Numerous anecdotal reports are appearing on the internet by people benefiting from taking Anatabloc. Persyst, a poster on Yahoo, has maintained a list ailments from people who have posted testimonials where they benefited from using Anatabloc. For a while, I also kept track of internet testimonials - but they became so numerous I gave up.
5. More people are becoming aware of the press coverage on Anatabloc, like the CBS story from the Michigan TV station that now has almost 20,000 views on YouTube. Dr. Dale Wilson, who is conducting the study, along with a patient in the study, are both interviewed. Dr. Wilson provides a list of illnesses that he thinks will benefit from Anatabloc.
Fred Couples uses Anatabloc and has benefited significantly. His C Reactive Protein levels (an inflammation marker measured by blood tests) dropped from 6.5 to 0.8, according to his interview on ESPN's The Morning Drive. In this link, he told the world "I can't explain it, I just feel better". He approached the company to become a spokesman for Anatabloc. Former world ranked Tennis players (Arias and Krickstein), along with world famous tennis coach Nick Bolletieri are bringing in the tennis crowd with this testimonial.
4. It was revealed on PACER (Public Access to Court Electronic Records) that RJR and Star Scientific have been ordered to have mediated settlement talks this summer. This was confirmed in the fifth paragraph of Star's recent Press Release where they stated the mediation/settlement process was on-going. There is speculation the parties are already in discussions and it is possible that a licensing deal could be finalized before the mandated mediation talks. It is also possible that Philip Morris (Altria - MO) might try to beat RJR and be the first to get a license. Settlement speculation could be leading to additional stock accumulation.
3. Sales of Anatabloc are now ramping at GNC stores around the country. Star Scientific started with GNC sales only available via mail order in February, but sales were so brisk that GNC started stocking stores their stores in late March (see third paragraph of the link above). Now it appears that all of the major GNC stores have Anatabloc available off the shelf (unless they are sold out). Sales are starting to ramp as GNC sales associates learn the benefits of Anatabloc. This ramp really started in April based on my personal observations from stopping in numerous GNC stores. Some stores are now selling more than a case (12 bottles) per week. Some stores are still only selling a bottle or two per week. I am still gathering data, but I estimate that Anatabloc is now on the shelf in over half of GNC's US stores and that the average GNC store is selling about 3 bottles per week (but I think this rate is increasing).
2. Star had a presentation on Anatabloc on May 8 in NYC. Wall Street is just beginning to learn about the wide ranging conditions that Anatabloc can treat. When those analysts start seeing how fast revenues are ramping at the GNC stores, major institutional investors, mutual funds and hedge funds will be adding significantly to their positions. Between the MS study in mice and the new Alzheimer's study with Anatabloc in humans, the market will eventually understand the significance of a discovery that stops abnormal inflammation at the cellular level by reducing NF-kB.
1. CIGX stock is heavily shorted, but those who are short know about items 2-10 on this list.
Disclosure: I am long CIGX.