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A.J. Watkinson
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A.J cut his teeth while working for more than 12 years on the corporate side of the financial services industry in the suburbs of New York City. In addition, A.J. has successfully traded stocks, options and currencies as an independent trader since the late 90's. Eventually A.J. moved out of... More
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  • Buy Shares Of MNKD? Yes...

    Everyone's searching for that next great Penny Stocks To Buy. With markets trading near all-time highs, finding a stock with huge potential for return is certainly difficult.

    But not impossible…

    There are always stocks ready to take off, just waiting for investors to buy up shares. Amazingly, there's one out there now that's just barely preparing to take off- even after a huge news announcement last month that can change the course of the diabetes industry forever.

    If you've invested in biotech stocks in the past, there's a better chance than not you've been burned. Waiting for the various stages of testing and trial results to be announced can be trying. Then there's the almighty FDA approval of a commercial product which always send a stock on a roller coaster ride.

    Shareholders get tossed about pretty hard and many times those very investors who would have been rewarded if they had just held on in the bad times end up brutally burned. They end up giving up when short sellers crush their dreams causing them to do what they believe is the "conservative" thing - sell their shares before they were worthless.

    But this time around for shareholders in MNKD, things are looking up. There are 3 reasons why this penny stock is poised to take off. And for starters, we will see a sharp move upon the release of the FDA's approval decision of Afreeza.

    But should you be investing in this company now?

    I say there's no doubt about it. Let me dive into those three reasons I mentioned...

    1. MNKD is in position to benefit from the massive short position that still remains in the stock. Currently, over 28% of the float… or more than 65 million shares of MNKD are being held short. I just don't know what in the world these folks are thinking. The FDA is on the verge of approving their blockbuster drug. And this very product about to be approved could revolutionize the multi-billion insulin market.

    Seriously...

    Even if you believe that the nearly unanimous voting by the FDA's advisory committee earlier this year won't hold any weight in the FDA's decision, where is the financial risk management? The upside potential for MannKind on good news, which by the way is widely expected (just read other expert opinions)... is massive.

    2. If the FDA announces approval of Afreezza, MNKD will then need to find a big-phara partner for the product. Some bearish analysts see this as a big hurdle to clear. But seriously, can you imagine anyone currently in the diabetes marketplace not wanting to get in on this new insulin tech?

    It would be like massive oil companies ignoring clean, natural gas and other alternative fuels they can resell under their current business model (or a similar one). It would be bad business to ignore this product. It seems clear to me that some pharma giant will pickup a piece of MannKind's product - and the big pharma company that sees this value can only hope there isn't a biding war already ensuing.

    Now onto my final point...

    3. If and when all these event come to pass, investors will want confirmation that Afreeza is a commercial success. Will patients switch over to the certain-to-be more expensive… and more than likely not-covered-by-insurance Afreeza. That's the billion dollar question!

    But given the reasons stated by the FDA's advisory committee as to the populations that this drug can help, we may end up seeing a government subsidy on it. Hell, if that little blue pill can end up covered by Medicare, I sure hope a life altering inhaler-based insulin would end up making the cut.

    In summary...

    I believe MNKD could see a short-term move from $7 to $11 immediately following a positive FDA decision. Additionally, the announcement of a commercial partner could drive this penny stock even higher - say to the tune of $13-$15 per share.

    And after the first initial quarter where Afreeza sales are tracked by the company, we will see the stock move pretty aggressively once again.

    Even as positive as I am on this stock, trying to pretend I can see that far out would be absurd... there are potential issues out there. Nothing's a guarantee. Should the FDA fail to approve Afreeza at this stage of the game - the shorts could be proven right, and the stock could absolutely tank.

    I wouldn't think there's much recovering at this point.

    But from what I've seen so far this year, and heard during the advisory board's meeting… I wouldn't bet against MNKD from here out.

    Now, for those of you wondering how I can substantiate my overly optimistic price targets- well... have you seen shares of AMZN lately? What's that P/E again? And what's supporting the price right now... it's surely not profits.

    PS. I'm personally long this stock- and you should be too. There are fewer "good bets" in the small cap world than MNKD right now.

    Disclosure: I am long MNKD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Tags: MNKD, long-ideas
    May 21 1:38 PM | Link | 4 Comments
  • Pump And Dump Spotlight - BRZG: Brazil Gold

    In the world of penny stocks, you're sure to find oodles of great, unknown companies to invest in. But there are also penny stock scams designed to bilk hard-earned cash from investors. And usually you'll know its hit you after you've watched your investment evaporate into thin air!

    We know what to look for, and tell you who's out there pumping stocks using paid promoters.

    It's our job to expose penny stock pump and dump scams…

    And we take real pleasure in putting the smackdown on the latest penny stock pump and dump scams.

    As you read, you'll see the big red flags we've come across on these companies. And with all the great penny stocks out there… there's no reason to put a single dime into any of these companies!

    This week, we're exposing a pump and dump scams on: Brazil Gold Corp. - OTCPK:BRZG

    It's looking like things have been going poorly at Brazil Gold. Their stock trades for a paltry $0.0027, and that's after a 55% single day drop! Why oh why do the pumpers think you need to buy this sub-penny stock? Well, for no other reason than "watch for momentum as we could be in for one CRAZY day!"

    Yep, that's all they've got to tell you. And to see how much they've been paid for that crap analysis… well, it's enough to turn your stomach upside down.

    Red Flag #1: Paid PUMP!

    Stock Mister was paid a staggering $250,000 for a single day's promotion!

    Here's the details from the disclaimer for you to read-

    StockMister.com has agreed to and expects to be compensated Two-Hundred and Fifty Thousand Dollars Cash via Bank Wire Transfer by a third party (Flip Ventures) for a 1 Day Marketing Program regarding BRZG.

    Of course they can't put the number in their email, you might actually see it if you were browsing the entire message.

    But the real concern you should have is about what you're buying when you purchase shares of this stock...

    Red Flag #2: Financial Trainwreck

    BRZG at least files with the SEC, which makes their reports readable and consistent. But there's not much else good to report about the company's finances.

    Here's their numbers as of December 31, 2013...

    • $659 in cash on hand
    • $1.1 million in current liabilities & - but $1.6 million in total liabilities
    • $335 k loss for just the last quarter of 2013 - on $0 revenue

    No revenue, a huge loss, lots of liabilities, and $659 in cash in the bank. I'm pretty sure you have more in the bank. Ready to buy shares yet? I hope not!

    But wait, there's more...

    Red Flag #3: Name Change

    The directors of this company, who by the way own over 68% of the shares, collectively decided that the gold business in Brazil isn't all that booming (as you can clearly see above). So instead, they decided to change direction and get into the livestock business as Conexus Corp. They're going to focus on the cattle business. Great for them.

    But what kind of success should we expect to see from this company down the road? If you're judging from how well they did in the gold business, I'd say their chances are slim for success!

    More On The Stock Holders

    But if you want to know who's behind this company, and how many shares they hold- here's the goods which I pulled straight from their 10-Q:

          Shares of Common Stock
    Beneficially Owned
     
    Name Age Positions held with Brazil Gold Number of
    Shares
      Percent
    of Class
     
               
    Stephen J. Price 54 Chief Executive Officer and Director  391,658,891(1)  32.5%
                 
    Gerard Daignault 55 Chief Financial Officer and Director  391,658,891(1)  32.5%
                 
    Conrad Huss 65 Director  36,000,000   3.0%
                 
    Adirondack Partners LLC (3) - -  8,424,886(2)  9.9%
                 
    ASC Recap LLC (4) - -  8,424,886(2)  9.9%
                 
    All directors and executive officers as a group (3 persons)      819,317,782   68.0%

    The scary part is, both the CEO and CFO each hold stock that's worth $1.05 million each. Seeing that BRZG lost over 55% in the last trading session- you can bet they're not all that happy… at least I wouldn't be.

    That is unless of course they dumped some shares on unsuspecting folks reading that email from good ol' Stock Mister. I'm not saying they did, but we can be sure the company who paid Stock Mister $250K, Flip Ventures, was planning on doing just that!

    Are you holding shares right now? Let's hope not… who knows what'll happen next with a sub-penny stock like this!

    The Wrap Up:

    Too many investors get sucked into these nightmare penny stocks scams. They fall for the overly optimistic projections the paid promoters are selling. In the search of easy money, investors lose sight of what a real return should be… and end up holding the bag.

    When investing in pumped penny stocks, it's the ultimate case of "let the buyer beware!"

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: BRZG
    May 11 1:40 PM | Link | Comment!
  • Pump And Dump Alert - OGNG

    (click to enlarge)

    In the world of penny stocks, you're sure to find oodles of great, unknown companies to invest in. But there are also penny stock scams designed to bilk hard-earned cash from investors. And usually you'll know its hit you after you've watched your investment evaporate into thin air!

    We know what to look for, and tell you who's out there pumping stocks using paid promoters.

    It's our job to expose penny stock pump and dump scams…

    And we take real pleasure in putting the smackdown on the latest penny stock pump and dump scams.

    As you read, you'll see the big red flags we've come across on these companies. And with all the great penny stocks out there… there's no reason to put a single dime into any of these companies!

    This week, we're exposing a pump and dump scams on: Bravo Enterprises (OTCQB:OGNG)

    Water, water everywhere, but not a drop to drink. Apparently Bravo thought it a good idea to get into the "atmospheric water harvesting". OGNG signed an exclusive license agreement with Water For The World Manufacturing Inc.

    Hooray!

    Now if it were that simple (as the pumpers want you to believe), we wouldn't be talking about this penny stock.

    So take a look at what I found…

    Red Flag #1: Paid PUMP!

    Damn Good Penny Picks is just one of the pumpers getting paid to promote this stock. In fact, they were paid $25,000

    Here's the disclaimer for you to check out-

    "We have been compensated twentyfive thousand dollars for the dissemination of this report by an unaffiliated third party."

    That's $25,000 if you can't read word math… a favorite for pumpers to hide how much they've been paid!

    Red Flag #2: Recycled Ticker Symbol From A Failed Companies

    Not surprising, Bravo's ticker symbol comes from a previously failed company. Just look at the ticker symbol… OGNG has nothing to do with the name Bravo!

    But it does have to do with Organa Gardens International….

    That's the ticker symbol for the previous company- and once failed… Bravo stepped in and took over the SEC registered symbol.

    This ticker symbol is like a bad game of musical chair. Check out this history!

    • Bravo Enterprises (current)
    • Organa Gardens
    • Shotgun Energy
    • Avalon Energy
    • Avalon Gold Corporation
    • Iceburg Brands
    • Precise Life Sciences
    • Asdar Group
    • Venture Investments Inc. (Nevada 1983)

    Boy… that's some kind of a mixed up mess! And something scary for potential investors need to be weary of. Remember- there's a lot of accumulated debt with a stock like this!

    That brings us to my next point…

    Red Flat #3: Terrible Financial Data

    Bravo's sitting on a whopping $25.5 million of incurred losses since inception! You heard that right!

    The current company isn't helping matters. Here's the dirt found in OGNG's latest financial statement-

    • $345,854 9 month loss
    • $282,842 operation loss for the first 9 months of 2013
    • A decrease of $85,480 cash from 2012

    But the final note you should pay attention to is the company admits the "need to raise capital in the next 12 months in order to continue as a going concern"…

    Meaning they'll be out of business if investors don't pony up more cash! All I know is, that better not be you my good friend- or you'll be kissing it goodbye.

    The Wrap Up:

    Too many investors get sucked into these nightmare penny stocks scams. They fall for the overly optimistic projections the paid promoters are selling. In the search of easy money, investors lose sight of what a real return should be… and end up holding the bag.

    When investing in pumped penny stocks, it's the ultimate case of "let the buyer beware!"

    Mar 04 12:17 AM | Link | 1 Comment
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