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Chris Katje is an investor from Grand Rapids, Michigan who also writes for The Street (http://www.thestreet.com/author/1385017/ChrisKatje/all.html). Chris is the owner of Stocks Under $20 through the Marketfy website. (http://marketfy.com/product/stocks-under-20/)The subscription service... More
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  • Novogen Limited Shares Continue To Be Undervalued For Long Term Potential

    On Wednesday, shares of Novogen Limited (NASDAQ:NVGN) saw huge trading gains throughout the day before ending at $3.36, a gain of 33.6%. Shares traded as high as $4.33 on the day. The gain came on a day with a press release citing the possibility long term potential of one of Novogen's treatments.

    Today's press release was titled "US Studies Confirm Ability of TRXE-009 to Kill Brain Cancer Stem Cells".

    In the release came the fact that all patient derived cancer cells in cultures responded to TRXE-009. This sets the treatment up for future trials. The test now is to confirm its ability to cross the blood-brain barrier. This is the part that has tripped up many chemotherapeutic drugs from reaching into brain tissue. As the company says in the press release, "so far it has ticked every box asked of it."

    Of course the press release was rather bullish and has been seen by some as a rehash of old news and too promotional. For me, I think it solidifies the long term bullish potential for Novogen. The company has a market capitalization of less than $50 million, but is shaping up as a possible blockbuster breakout biotech stock. What follows below is my article to subscribers back in February when shares were purchased at $2.82 each.

    The following was previously released to subscribers of Stocks Under $20:

    Shares of Novogen Limited (Official Website) have been rising in recent weeks and are set to have an exciting week that may see immediate gains for investors. Novogen has new technology and strategies to target cancers like ovarian, colorectal, malignant ascites, prostate, neural cancers, and melanoma. The company's two main drug technologies are super benzopyrans and anti-tropomyasins.

    With the market closed Monday, Tuesday will be our targeted buy in day for the portfolio. The key reason is Wednesday will be the company's Investor Day Presentation. This presentation will cover the following key pieces:

    · 2015/2016 clinical research strategy

    · U.S. scientists to present details of Cantrixil and TRXE-009 studies

    Along with its own pipeline, Novogen also has a joint venture with Yale University. The company CanTX is based in New Haven Connecticut and what I believe to be an undervalued part of Novogen. Cantrixil is of particular note as it is the key piece of the joint venture with Yale University. From a December press release, investors should note that this is a potential revolutionary chemotherapeutic treatment. Cantrixil differentiates as it is an injection into the infected body cavity, in comparison to the current blood stream injection method.

    The release states, "Delivering the drug directly into the cavity where the cancer is spreading ensures cancer cells are exposed to levels of drug some hundreds of times greater than via the blood." This method used in animal models for ovarian cancer blocked cancer development and looks ready to enter human trials.

    CanTX's site says the joint venture was "forged to produce novel therapeutics that kill the cancer stem cell that we hope will bring transformational change to patient survival".

    The presentations will be of particular note as the pipeline currently looks like it is staring to enter the invest in phase as 2015 and 2016 are the key years:

    · Cantrixil: Quarter 3 2015

    · TRXE-0025: Quarter 1 2016

    · Trilexium: Quarter 1 2016

    · Anising: Quarter 1 2016

    Along with Wednesday's Investor Briefing, the company will be presenting at the following:

    · Feb 17: Wall Street Wonders

    · Feb 23: Sachs Cancer Biotech Investor Conference

    · May 19-21: Australia Biotech in Hong Kong

    · May 27-28: Marcum Microcap

    · May 29: Brain Tumor Biotech Summit

    · June 15-18: Bio International Convention

    Novogen has seen a couple spikes recently with new items. This includes:

    · 2/11 key super-benzopyran patent for the leading drug candidates TRXE-002, TRXE-009, and TRXED-0025

    · 1/15 shares jumped 50% in response to this item in a press release, "identified a family of compounds with an ability to promote the growth and activity of normal brain stem cells". This targets brain regeneration and creates a new method of targeting hard cancer areas like the brain.

    · 12/16 breakthrough discovery melanoma treatment TRXE-009 highly active in pre-clinical studies. This was a big release that caused shares to jump over 100%. The key piece was the fact that TRXE-009 is an important new potential secondary treatment to brain cancers due to melanoma. There is no current effective therapies for this treatment. Also this shows a hypothesized link between brain cancer and melanoma.

    Novogen is a pre-clinical company and currently has no human trials going. However, this is about to change and Wall Street is likely to take not and start reacting. Just two months ago, shares were way up over $5. The company's key cancer focus in ovarian cancer, which has been targeted by many companies. Endocyte has shares that trade at $5.26. They traded all the way up to $33.70 around one year ago. Currently the company has phase ii and phase iii trials for ovarian cancer, which give the company a market capitalization of $219 million. Insys Therapeutics received orphan drug designation for an ovarian cancer treatment. That company, which also has other drugs in trial and meaningful revenue, has a market capitalization of $1.8 billion.

    While I don't see shares of Novogen approaching these levels that soon, I do think now is the ground floor to get in on this possible revolutionary technology. I am most excited about Cantrixil and the possible chemotherapy treatment. However, the rest of the business is also exciting as well. I see shares doubling back up the $5 to $6 range by the time some of these trials start. Looking at $5 by the end of March 2016. This would be all four of the events above hitting and also all of these investor presentations attracting new investors.

    As mentioned above, shares of Novogen have already started taking off in the short term. Shares will be hot this week and could see a double within days depending on the data presented. We will be looking at getting in under $3 but will see how Tuesday plays out. Shares ended at $2.79 on Friday. Over the last 52 weeks, shares have traded between $1.51 and $5.97.

    Shares of Novogen were bought for the Stocks Under $20 portfolio at a price of $2.82. Thus, on paper, we have seen large gains, but have not sold any shares. I believe the stock will continue to see wild swings based on press releases and newsworthy items. As laid out above, there is some catalysts coming in 2015, and at some point this company may take off and not look back. Information for that article came from a February newsletter.

    Tags: NVGN
    Mar 08 2:44 PM | Link | Comment!
  • Three Stocks Under $20 Portfolio Holdings Had Double Digit Gains On Thursday

    Non subscribers of the Stocks Under $20 portfolio missed out on a huge day Thursday. That day featured three portfolio companies that all had gains of 13% or more. That capped a nice trading day where almost the entire portfolio was up and the stocks continue to gain ground in 2015, after a disappointing 2014.

    The three stocks that had huge gains were:

    Glu Mobile (NASDAQ:GLUU): +30.7%

    Highpower (NASDAQ:HPJ): +16.9%

    Cemex (NYSE:CX): +13.5%

    I am writing an entire blog position on Glu Mobile, that will only be available to subscribers. Keep in mind that this was the first stock ever owned by the Stocks Under $20 portfolio. It also was at one point the largest holding before a partial stake was sold to diversify and allow cash to shift into new stocks.

    Cemex saw a large gain after reporting quarterly earnings. The stock is one of two large holdings in the portfolio that center on the growth I see coming in Mexico. I continue to think the country is one of the top ten international markets investors should be in.

    I will highlight Highpower's move as the company is one of several that sit in the portfolio trading down. Several similar companies were bought with huge catalysts and are waiting to break out as they use their technology or intellectual property to boost revenue and earnings.

    HIghpower announced a multimillion dollar order involving iPhone cases. This order comes from Mophie, a company many now recognize from their Super Bowl commercial (the one where God sees low battery on his phone). Mophie is the number one selling battery case manufacturer in North America.

    Mohpie is using Highpower for lithium polymer batteries for iPhone 6 and iPhone 6 Plus cases. The cases will be available in AT&T stores, other retail outlets, and on Amazon.com. This deal strengthens my bullish views on Highpower. Of course, the deal also continues the company's shift to lithium batteries, which have a higher gross margin than NiMH.

    In the third quarter, revenue increased 14.5%, led by a 40.8% increase in lithium battery sales. Over the nine month period, overall sales increased 18.4% to $111.8 million. Lithium sales showed a narrower gap in the third quarter, where their revenue contribution was $21.1 million vs NiMH at $22.5 million.

    If you haven't had a chance to check Highpower out, I suggest you do so. Follow along with the Stocks Under $20 portfolio for more insight on why GLUU and CX were up so much and what's in store down the road. Also subscribe now to get my newest picks later this week.

    Cheers and Happy Investing

    Chris

    Tags: GLUU, CX, HPJ
    Feb 10 1:35 AM | Link | Comment!
  • Stocks Under $20 2014 Review

    2014 was the first year for my Stocks Under $20 portfolio and it was a rough one to start. I attempted to build up the $100,000 portfolio by adding stakes in small companies that traded under $20. What quickly happened was an overallocation to several names and sectors that saw hard falls in the second half of the year.

    Examples of this include Glu Mobile, the company with hits like Deer Hunter, and the Kim Kardashian game. I have since scaled back on this name, but continue to hold a large stake believing in the long term success of the small mobile gaming company. Another example was getting into some sectors late, like oil exploration and NFC technology to benefit Apple's new initiatives. This doesn't mean I have sold those names as the long term benefits are there, however in the long run I likely paid a higher starting price then what was needed.

    With the portfolio now close to being fully invested, the new picks will be more precise and likely represent better weightings going forward. That has already been demonstrated with the portfolio starting to pick up going into 2015.

    Take for example, two stocks that saw double digit increases this week. ELOS and ZEP were two small holdings of this portfolio that most investors have never heard of. After this week's moves and likely analyst coverage, the names are ready to continue moving. Because you weren't a subscriber you missed out on these names that are now up 11% (NASDAQ:ELOS) and 5% (NYSE:ZEP).

    The real winner of the portfolio has been Advaxis (NASDAQ:ADXS). This small biotech company was added to the portfolio in 2014 with a strong pipeline and several huge markets. I sold a partial stake in this company for a gain of 196%. The rest of the position is now playing with the house's money, or pure profit after taking out our initial investment. Shares continue their run this week and are now up 241%.

    In fact, the Advaxis success has also led to a better representation by biotech companies in the Stocks Under $20 portfolio. In December, I shared my latest biotech bet that has a major 2015 catalyst coming and a strong pipeline. The company also already has approved drugs so it is not as risky as some of the penny stock biotech companies. Later next week I will sharing my next biotech stock pick that has treatments for two huge markets and could significantly change care for both. The stock trades for less than $8 per share, less than half of its 52 week high.

    The other sale I made in 2014 was Dreamworks Animation (NASDAQ:DWA). I bought shares when they were under $20, which was a very short window, and then flipped them when they crossed the $25 mark, as defined as the mandatory exit point for this portfolio. In less than two months, investors saw a 33.8% gain from the Dreamworks Animation sale.

    The portfolio has made three sales since its inception. Two were winners (ADXS, DWA) and one was a loser (NASDAQ:GLUU). The average gain on the trades was 95.2%. Year to date, the fund is up 1.8%. As mentioned above, the fund struggled in the beginning and is still down 6.6% over the last 365 days. I believe 2015 will be significantly better and remain committed to bringing you the best picks of stocks trading under $20 to increase profits and lower cost basis.

    So if you're inclined to add this service to your financial news and stock pick sources, enter code RESOLUTION upon checkout for 50% savings on your first month. Remember all Marketfy plans come with a 30 day money back guarantee. But I know once you signup you won't want that refund.

    Happy trading,

    Chris

    Stocks Under $20

    Tags: ADXS, GLUU, ZEP, ELOS, DWA
    Jan 09 1:48 PM | Link | Comment!
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