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Dr. Robin McCutcheon
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No matter what Econ101 teaches us -- my tips for you: Follow the money - you'll always find the right answer. Do your own research - do lots of your own research so you know the truth when it hits you in the face. When the data points you in a particular direction, forget theory, go that direction.
  • Profiting Off the Animal Spirits of Young, Technology-Driven Companies 0 comments
    Sep 13, 2011 9:41 AM | about stocks: D, PSID, TLCVF

    Patrick Allen, of CNBC, wrote, “World Facing ‘Crisis of Capitalism’, quoting George Magnus that “the private sector has no choice but to deleverage, exacerbating the economic impact of the loss of past growth drivers. Untimely financial attrition in the public sector, therefore, is going to add to the economic predicament.”  

    “No choice.” Really? No person has a choice? Not one? Well, perhaps Mr. Magnus has a point, but only in this sense: perhaps people aren’t seeing the big picture, and in avoiding looking at the big picture they are not taking into account all the choices they do have.

    What, you ask, is the big picture? And, the even better question, “How do I see the big picture and make it work for me so I come out of this situation profitably?”

    So, first you must see the bigger picture. And, you must recognize that we’ve seen this picture before, only most of us weren’t born yet when last time this picture was present. The world has faced a crisis of capitalism about 80 years ago, when the industrialized world deleveraged in late 1929. The hue and cry was “capitalism has failed us!” ‘Experts’ assured us that it was all capitalism’s fault, that, and greedy bankers. Sound vaguely familiar?

    Here we are, some 80-plus years later and again the hue and cry is that capitalism has failed us, again. I know what you’re thinking, “If we’ve been here before, and we got out, how do we get out this time?” Production and technology closely connected with a currency of renowned value were our answers last time.

    Most economists are honest enough to confirm that the majority of job growth is generated by small, upstart businesses. These small businesses need to use technology to be productive and profitable with their current number of workers. Apple and Google are the perfect examples of companies that used technology to make their starting companies grow large with technology. Where are our Apples and Googles now? What small businesses are just below the horizon, using technology to grow in which we can invest?

    I have three, fairly risky, buy it and forget it recommendations: TLC Vision Corporation, Advanced Cell Technology, Inc., and Positive ID Corporation.

    TLC Vision Corporation, (TLCV) an eye care services company, operates refractive centers and provides eye care and doctor services in the United States and Canada. It operates in three segments: Refractive Centers, Doctor Services, and Eye Care. The Refractive Centers segment owns and manages refractive laser centers that treat common refractive vision disorders, such as myopia, hyperopia, and astigmatism, as well as provide corrective laser surgery services. 

    Advanced Cell Technology Inc. (ACTC)  Advanced Cell Technology, Inc., a biotechnology company, focuses on the development and commercialization of human embryonic and adult stem cell technology in the field of regenerative medicine. Its embryonic stem cell research programs include cellular reprogramming, reduced complexity program, and stem cell differentiation research programs. The company’s cellular reprogramming involves in the development of therapies based on the use of genetically identical pluripotent stem cells generated by its cellular reprogramming technologies. Advanced Cell Technology, Inc. also generates stable cell lines with particular focus on blood lineage and vascular epithelial cell lines from hemangioblast cells. In addition, it is developing an autologous myoblast transplantation therapy to restore cardiac function in patients with advanced heart disease. The company’s stem cell-based therapy would provide treatment for a range of acute and chronic degenerative diseases. (Michael J. Ray also posts on ACTC here, but no one else seems to be writing about these speculative biotech stocks, yet.)

    PositiveID Corporation (PSID) develops medical devices and biological detection systems focusing primarily on diabetes management, rapid medical testing, and airborne bio-threat detection. It also focuses on the development of microfluidic systems for automated preparation of and performance of biological assays. The company engages in the development of the GlucoChip, a glucose-sensing microchip; iglucose, a stand-alone self-contained unit that automatically queries a diabetic user’s data-capable glucometer for blood glucose data and sends that data through encrypted text messaging to the iglucose online database; Easy Check, a non-invasive breath glucose detection system; and the rapid flu detection system.  

    All three of these companies, while risky as investments, serve as reminders that our entire way of life is built on businesses using technology and taking risks to grow. TLC Vision has over 800 employees among them Prof. Richard L. Lindstrom  founder and attending physician of the Minnesota Eye Consultants, Adjunct Professor Emeritus at the University of Minnesota Department of Ophthalmology, is a board-certified ophthalmologist and  internationally recognized leader in corneal, cataract, refractive and laser surgery. He has been at the forefront of ophthalmology's evolutionary changes throughout his career, as a recognized researcher, teacher, inventor, writer, lecturer and highly acclaimed physician and surgeon.

    Advanced Cell Technology is small and dynamic with 22 employees, among them Dr. Robert Lanza
    world renown in eyeball research and is an American Doctor of Medicine, scientist, Chief Scientific Officer of Advanced Cell Technology (ACTC) and Adjunct Professor at the Institute for Regenerative Medicine, Wake Forest University School of Medicine 

    Positive ID Corp has 18 employees, among them Dr. Jonathan Musher  who has been Vice President for Medical Affairs and Chief Medical Officer of VeriChip Corporation since April 12, 2007. In this position, Dr. Musher oversees VeriChip's medical activities related to the continued implementation of the VeriMed Patient Identification System, including clinical research and medical information. He served as a Consultant of Golden Living Centers (formerly Beverly Enterprises Inc.) He has over 20 years of clinical hands-on medical experience. His expertise spans the spectrum of acute care and long-term care services, from inpatient and ambulatory care through home and hospice care to skilled nursing care.

    Note that none of these three gentlemen are couch potatoes and their companies are all working in the direction of better health conditions for us. They’ve been at the forefront of technological innovation and health service for most of their adult lives! Will their companies still be here in five years? With nearly 70 million baby-boomers nearing and reaching age 65, indicating our need for their type of research and health technology, these three companies will probably make it. The question is, are you going to start looking for companies like these three to build your future?



    Disclosure: I am long ACTC.OB, OTCQB:PSID, TLCV.PK.
    Stocks: D, PSID, TLCVF
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