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View Connor Gach's Comments
Document Security Systems - All Aboard, Before It's Too Late
Thanks for the comment. I don't believe the lack of debt puts them at a competitive disadvantage, though I do believe their core/legacy business provides them the ability to take on a bit more debt (though I don't think they will). While the existing business is crucial to circumvent the increasing regulation regarding Non-Practicing Entities (Patent Trolls), I see the majority of DSS's value in the patents. As far as the stock goes, we've seen it more than halved in the past few months, while the conditions of the business have strengthened. In a sense, this is both a value and a growth play. I'd also recommend everyone read the Dawson James research report:
Aug 13 02:17 PM
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Atossa Genetics - Will Investors Be Holding The Bag?
People have referenced the note posted by Director of Research at Dawson James, Bob Wasserman. This is a very detailed rebuttal and delves much deeper than Dividend Monkey's superficial article. Bob is very well respected within the industry, and his points are based on a much more thorough and accurate analysis than Dividend Monkey's. AND, he was even bold enough to attach his name to his work. I've pasted the note here, and provided the link:
1) Atossa Genetics (Nasdaq/ATOS/Buy/$9.56 Intra-Day) – Atossa Genetics shares are down significantly today, possibly in reaction to a negative article published in Seeking Alpha. The article was published anonymously by “Dividend Monkey”, an infrequent contributor to the website who has all of 16 followers and whose profile on the site lists interests in dividend stocks, ETFs, energy stocks and other areas but not medical device, diagnostic or biotechnology stocks. In addition, Seeking Alpha in its own disclaimer on anonymous authors sites: “Seeking Alpha editors greatly prefer that our authors use their real names”, and in fact this website has published other, positive articles on Atossa which have been much more professionally written where the authors were not ashamed to use their real names.
Let’s go over Monkey’s points against Atossa in more detail. These include:
1) The press release (referring to the 3/13/2013 release on FedMed) does not say a single word about potential monetary reimbursements that Atossa Genetics would receive from FedMed. I called investor relations to dig deeper on the specifics, but the investor relations officer said he didn't have anything more to add. You would think that if there were substantial PPO reimbursement for Atossa products, they would release it in the press release. Monkey’s statement about no potential reimbursements from FedMed shows the author’s ignorance about the health care industry, as network providers such as FedMed and MultiPlan serve only as a link between patients and insurers/payors, and Atossa itself describes this relationship more clearly in their paragraph on MultiPlan in their recent S-1 filing dated February 5, 2013:
“Our agreement with MultiPlan provides that reimbursement will be provided at a prescribed rate when insurers agree to reimburse for the ForeCYTE and ArgusCYTE Breast Health Tests. The prescribed rate of reimbursement is within the range of reimbursement that we have historically received.” Monkey’s second comment in this paragraph relating to his conversations with Atossa’s “investor relations officer” unfortunately reveals the author’s poor research and lack of effort relating to this article, as Atossa’s CEO Steve Quay and new CFO Kyle Guse have established themselves as some of the most accessible management members in the public markets in just a short time.
2) Monkey includes a chart depicting Marina Biotech’s (MRNA/Not Rated) share performance, which occurred well after Dr. Quay left Nastech and again also after the merger between Marina and Nastech, but fails to mention OncoGenex’s (Nasdaq/OGXI/NR) stock performance on the other hand, which has quadrupled since 2008, the year of their purchase of Dr. Quay’s former company, Sonus Pharmaceuticals.
3) Monkey dismissed Atossa’s Chief Scientific Officer, Dr. Shu-Chi Chen, as Dr. Quay’s wife, which is true enough, but fails to mention that Dr. Chen:
• Earned a doctorate degree in microbiology and public health from Michigan State University;
• Has published extensively on Molecular Oncology;
• Was employed as an Associate Professor at National Yang Ming University, Taipei, Taiwan;
• Has been named as an inventor on four patent applications related to cancer therapeutics; and
• Has served as the principal investigator of an NIH RO1 grant studying tumor suppression by gap junction protein connexin 43 at the Department of Molecular Medicine at Northwest Hospital in Seattle.
4) Monkey states that Atossa replaced its CFO on January 4th of this year but fails to mention that Kyle Guse, the new CFO and General Counsel, is both a securities attorney and CPA, so in effect can serve double duty. Monkey also fails to mention that former CFO Chris Benjamin lived in Arizona, was only a part-time employee and was compensated pursuant to a consulting agreement, per the Company’s IPO filing last year.
5) Monkey also states that there are over 5 million warrants outstanding and exercisable at $1.25/share. This is simply wrong, as (per the S-1) the majority of the warrants are outstanding at $1.60, with only approximately 800,000 exercisable at $1.25. In addition, many of the shares underlying these warrants will have trading restrictions if exercised, and the exercise of these warrants could bring in additional cash to Atossa (approximately $10.6 million).
6) Monkey states lastly that there is only one institutional holder of the stock with only $6000 worth. However, at least four institutional investors participated in the Company’s IPO purchasing close to $500,000 worth of the offering, and of course given the improved level of trading activity of ATOS shares since the IPO as well as the positive news flow since November 2012 there easily could have been additional institutional investor activity in ATOS in recent months.
7) Finally, Monkey warns that “Atossa Genetics Needs to Raise Money Soon”, stating that “Atossa has only $885,000 in current assets as listed in the “10-Q”, which presumably means the Company’s September 30th, 2012 10-Q. This statement overlooks the $4 million in gross proceeds from the November 2012 IPO, completed after the September 10-Q was filed. Just a little oversight here, but this points up the poor scholarship of the author and the inflammatory language of this article. Nor does Monkey mention potential cash proceeds from certain warrants exercisable at higher prices of $5/share.
We are maintaining our Buy rating and $16 price target on ATOS shares. RMW
Mar 29 07:59 PM
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2 Micro Cap Biotech Stocks Ready To Soar
Very good report from CLSN last week. Everything appears to be on track, and the company reiterated that it has no intention of any dilutive equity financing until results from the HEAT study at the end of the year. Accordingly, Griffin Securities has increased their price target to $18. CLSN remains a screaming buy.
FD: I have increased my position on today's pullback.
Aug 20 12:20 PM
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VirnetX: Do You Believe In Fairytales? Part 2
It isn't even worth my time to go through step-by-step and refute the pervasive inaccuracies. Good luck with your short position. I, on the other hand, enjoy making money.
Aug 7 12:19 PM
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