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Mike Rabe's  Instablog

Entrepreneur, retail investor, artist - Specialize in biotech stocks, in particular emerging companies - Frequent trader - Focus on OTC and Nasdaq stocks - Preference for stocks under $5 per share that are close to breaking out - Preference for companies that most traders / analysts have little... More
  • 3 Holiday Stocking Stuffers for Big Gains in 2010 0 comments
    Nov 1, 2009 11:37 AM | about stocks: RMBS, BIEL.PK, CXSPY.PK
    With holiday season right around the corner, countless youngsters are creating their wish list for Santa. For serious investors, it’s a good time to create a shopping list for stocks that will outperform the market in 2010.
     
    I present three stocks that have excellent prospects for beating the market in the upcoming year.  All three of these stocks have outstanding risk/reward ratios.
     
    >>>> Rambus (RMBS) – Rambus is a memory chip maker that has been embroiled in patent litigation for several years. However, the Company’s scheduled antitrust trial against Samsung Electronics, Hynix Semiconductor, and Micron Technology (MU) in January presents a potentially huge value driver for 2010. 
     
    The three defending companies in the lawsuit are accused of colluding against Rambus' computer-memory technology. According to court documents that are available to the public, the “Three Amigos” appear to have incriminating evidence against them.
     
    Rambus is seeking $4.3 billion in damages, which could be tripled by a California jury. Given the potentially staggering amount of damages that could be awarded with a court victory, a pre-trial settlement is certainly a possibility.
     
    Unless the trial is delayed again (it was originally scheduled to begin in late September), Rambus will be in play in the coming months. With either a settlement or a court victory, RMBS could be a multi-bagger in 2010.
     
    >>>> Chemgenex (CXS.AX, CXSPY.PK) – Chemgenex is an Australian pharmaceutical company developing personalized oncology medicines. The Company currently has very limited revenue, but their lead drug, OMAPRO™ (for leukemia patients), has successfully completed clinical trials earlier this year. Chemgenex filed its New Drug Application with the FDA in September. If the FDA approves OMAPRO™, Chemgenex should begin to see major revenues in mid-2010. 
     
    Chemgenex expects to file its MAA with the EMEA (European Medicines Agency) for OMAPRO™  toward the end of the year. The Company also anticipates a partnership deal with a big pharma for the European market. By this time next year, Chemgenex could have substantial revenue streams from OMAPRO™ in the two largest pharmaceutical markets in the world. 
     
    Given its close proximity to a major market launch, Chemgenex presents a terrific stocking stuffer.
     
    For a more in-depth background on Chemgenex, see my July 2009 article:
     
    >>>> Bioelectronics (BIEL) – Makes inexpensive, disposable drug-free anti-inflammatory devices.   For penny players, Bioelectronics provides one of the best risk/ reward ratios out there.   BIEL is an extreme trade (it currently trades for around 7 cents per share).  
     
    Bioelectronics is currently an FDA play. Bioelectronics CEO, Andrew Whelan, had told me in an email this week that the Company is expecting to hear back from the FDA any day now on its application for 510(k) clearance to market its Allay Menstrual Pain Relief Patch product and OTC clearance for its ActiPatch Therapy products.
     
    Bioelectronics  is also expected to announce in November statistically significant study results that compared the effects of its ActiPatch® Therapy product to acetaminophen in the form of Extra Strength Tylenol® for the treatment of delayed onset muscle soreness (DOMS).
     
    With three of its five FDA filings completed, Bioelectronics is now focusing on revenue generation. Bioelectronics has made no secret in the fact that it hopes to be acquired by a large industry player down the road.
     
    ------
     
    These three stocks present an outstanding chance to not only beat the Street in 2010, but to beat it soundly. But like all holiday shopping deals, these discount sale prices will not last much longer.
     
    Disclosure: Long RMBS, CXSPY, BIEL
    Themes: technology, biotech, pharmaceuticals Stocks: RMBS, BIEL.PK, CXSPY.PK
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  • Rambus' (RMBS) AT trial appears set for mid-January. This stock will do well in 2010. Highly recommended. The AT trial is huge.
    about 11 hours ago
  • UNIFF (UNI.AX) is undervalued here. PSDV has come down since positive Phase III results were reported. Look for buy opp. in 2010 there.
    about 11 hours ago
  • Big day for RMBS (Ramubs). Judge Kramer refuses to delay AT trial against the cartel. RMBS highly recommended for 2010.
    Dec 23, 2009
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