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  • Lattice Positioned For Significant Upside In 2015

    The U.S. currently has the largest inmate population of any country in the world and the highest per capita incarceration rate. According to the International Centre for Prison Studies, there are approximately 2.4 million people imprisoned in the U.S. To put that in perspective, the country with the second highest inmate population is China, whose overall population is four times greater than the U.S. but only has an estimated 1.7 million inmates.

    On a per capita basis, the U.S. leads the world with an inmate population that tops more than 700 inmates per 100,000 citizens. As noted by Business Insider in early 2014, "not even Russia, a post-Soviet country known for locking people up and throwing away the key, is in the same league as the U.S. when it comes to its incarceration rate."

    While these statistics provide fodder for political debate, one thing is certain, the massive U.S. inmate population is unlikely to materially decline any time soon. With an aging and strained facility infrastructure and ongoing budget constraints at municipalities across the country, technological solutions are needed to effectively service and manage inmates and facilities.

    One company providing advanced information and communications technology solutions to the corrections market, both domestically and internationally, is Lattice, Inc. (OTCQB: LTTC).

    Lattice's flagship product is its Integrated Corrections Operating Network ("ICON") platform, an integrated communications system for correctional facilities, offering telephone calls, voicemail, video visitation, e-mail, text messaging, and social media.

    The platform also includes a facility management and accounting package that enables efficient management of all prison processes, including telephone calls, commissary purchases, point-of-sale kiosks, biometrics, booking, incident reporting, and more. ICON's automated payment processing, billing, and accounting features reduce administrative overhead, improving efficiency and accountability for correctional facilities ranging from large multi-facility operators to small individual facilities.

    After divesting its government services business in 2013, which had an operating history that spanned nearly four decades, Lattice's market share gains in the $5 billion U.S. corrections market have been gaining momentum in recent quarters.

    In Oklahoma, the first state where Lattice began to offer services to correctional facilities, Lattice now commands more than a third of the market. While a relatively small market compared to other areas of the U.S., Lattice's ability to continually add new facilities to its service footprint in the state provide strong validation of the quality of its technology solution.

    Lattice has also made inroads into the two largest corrections markets in the U.S. One of those markets is California, where Lattice completed a 200-station video visitation system installation at the Adelanto Detention Center in San Bernardino in January 2014. The California corrections market accounts for nearly 10% of the total inmate population in U.S., and according to the Washington Post, in an effort to reduce significant overcrowding in California's prisons, Gov. Jerry Brown has proposed spending $500 million on the construction of new facilities across the state.

    Commenting on the growing adoption of the Company's technology, CEO Paul Burgess stated, "Our unique technologies have proven to reduce management costs for corrections facilities of all sizes, and as California and other states continue to deal with inmate overcrowding issues and budget constraints, we believe we are well positioned to provide the necessary solutions to offset these challenges."

    Lattice is also expanding internationally, with footholds in Canada, Europe, and Asia. Earlier in 2014, the Company enlisted the services of Communications Media Advisors, a boutique consulting firm focused on the telecommunications, media, and high tech industries, to assist in the development of a comprehensive international expansion strategy designed to accelerate adoption of its technology in key targeted markets. We expect to see traction on this front in the coming quarters.

    Despite many positive developments, Lattice's shares have languished for much of 2014. We believe sales momentum will continue into 2015, and investors will begin to take more notice of the Company and its opportunity. RedChip analysts have a price target of $0.35 per share on Lattice. To learn more about this price target and the underlying investment thesis and value proposition, download our latest Lattice research profile today. You can also watch a recent presentation by CEO Paul Burgess that was recorded at our October online conference to gain even further insight into the Lattice opportunity.

    Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit

    Dec 22 3:19 PM | Link | Comment!
  • Why These Five Healthcare Stocks Have The Potential For 100% Gains In 2015

    There are many stocks in the RedChip Nation with the potential to produce big returns in 2015. Within the healthcare sector, our analysts have carefully selected five stocks that each have the potential for 100% gains over the next 12 months.

    These types of returns are not unusual. In fact, over the past two years, our top 20 healthcare stocks have reached average highs of 113% since first being featured in the RedChip Nation.

    We believe the following five stocks are undervalued and represent great opportunities for big returns as we move into 2015: Cancer Genetics (CGIX), Akers Biosciences (AKER), Opexa Therapeutics (NASDAQ: OPXA), Actinium Pharmaceuticals (NYSE MKT: ATNM), and CNS Response (OTCQB: CNSO).

    Cancer Genetics (NASDAQ: CGIX)

    Cancer Genetics is a DNA-based diagnostics company with seven commercialized tests. This company extracts DNA from tissue samples, and using its proprietary diagnostic tools, it's able to determine a patient's specific subtype of cancer. This enables doctors to personalize therapies for their cancer patients. The proven efficacy of Cancer Genetics' testing solutions has also been recognized by big pharma companies that use the technology in drug development programs.

    In the third quarter, Cancer Genetics reported sequential revenue growth of 110%. The third quarter also saw year-over-year revenue gains of 159% for the company's biopharma services and 44% for its clinical services. Setting the stage for continued growth, Cancer Genetics closed two acquisitions in the third quarter, one in India, and one that expands the company's footprint into China. Together these acquisitions are expected to add $5 million to $6 million in revenue in 2015.

    Despite this performance, Cancer Genetics' stock has languished for much of 2014. The stock's fall can be partly attributed to tax loss selling, as some institutions exit their positions, and partly due to a shelf registration filed in August. A shelf registration enables a company to have registered, or free trading, stock available to sell to investors in order to raise cash for a company. The Street misread this move by Cancer Genetics and believed the company was going to raise more money at depressed stock prices, which they have not done.

    These downward pressures have created a great buying opportunity. Cancer Genetics currently trades for just over 1.5x book value. This compares to industry peers which trade for as much as 5x to 7x book value.

    We're not the only ones to believe Cancer Genetics is undervalued and poised for a big move. Three independent analysts cover Cancer Genetics, and all three have price targets at $16 and above. Furthermore, billionaire investor and company chairman, John Pappajohn, reconfirmed his commitment to Cancer Genetics last week, purchasing over 72,000 shares between $5 and $6 per share.

    With the company's strong cash position ($30+ million at end of Q3), strong revenue growth (expected 100% in 2015), collaborations with prestigious institutions (Mayo Clinic, etc.), and superb management, Cancer Genetics is well positioned to produce big gains for investors in 2015.

    Akers Biosciences (NASDAQ: AKER)

    Akers Biosciences is a manufacturer and distributor of rapid point-of-care diagnostic products. Based on six platform technologies, the company has a suite of 11 commercially-available products addressing mass market opportunities, including a point-of-care cholesterol test that can measure your cholesterol in minutes. Akers also has a US FDA-approved heparin allergy test, which helps doctors determine if a patient that receives heparin (a widely-used blood thinner) will have a possible life and limb-threatening allergic reaction. In December, the company announced a $1 million contract to sell its heparin allergy test into China. Analysts at UK-broker finnCap estimate the China deal to be worth a minimum of $67 million over the next nine years.

    Like Cancer Genetics, Akers is also trading near its 52-week low, despite peers that trade at significantly higher valuations. This is a sector that trades at up to 5x book value while Akers can be scooped up for near 1x book value currently.

    Akers should report revenue of $4 million in 2014, and it's expected to see revenue growth of up to 100% with profitability in 2015. Analysts at Aegis have given the stock an $11.40 per share price target, representing sizeable returns for investors buying here in the lower single digits.

    With a strong cash position ($10.8 million at end of Q3), solid revenue growth, and near-term profitability, combined with a small float that can lead to quick moves, Akers represents a very compelling opportunity at current price levels.

    Opexa Therapeutics (NASDAQ: OPXA)

    Opexa Therapeutics is developing patient-specific immunotherapies for the treatment of multiple sclerosis, and its leading candidate, Tcelna, a personalized T-cell immunotherapy, is in a Phase IIb clinical development program for the treatment of Secondary Progressive Multiple Sclerosis, estimated to be a $7 billion opportunity in North America alone.

    The potential of Tcelna, which has received fast-track designation from the FDA, is evident in the company's partnership with global pharma giant Merck Serono. Merck Serono has already invested $5 million in Opexa, and its option agreement could result in up to $220 million in milestone payments with 8%-15% royalties. If the option agreement is fully executed, Opexa will have its costs for Phase 3 and commercialization covered.

    Like Cancer Genetics and other biotech stocks, Opexa is trading near its 52-week low, partly due to an overreaction to a shelf-registration filed earlier this year. Despite the shelf-registrations subsequent cancellation, Opexa's stock has yet to fully recover.

    Currently, Opexa has a market cap of just over $21 million. This compares to a similarly-staged peer, Receptos (NASDAQ: RCPT), also in a Phase 2 study for a drug that treats MS, which trades for a $3 billion market cap.

    It's only a matter of time before Opexa begins to trade near its fair market value. Analysts covering the stock have target prices ranging from $4 to $6 per share, considerably higher than recent trading levels.

    Actinium Pharmaceuticals (NYSE MKT: ATNM)

    Actinium Pharmaceuticals has two potential blockbuster therapies that have had excellent clinical trial results, with efficacy shown to be superior to currently available treatment options, all of which lack FDA approval. These therapies have a lower overall cost of treatment, providing economic benefits to hospitals and ensuring the company can generate strong gross profits from its drugs.

    The company's lead product, Iomab-B, is being readied for a single pivotal Phase 3 trial to prepare patients for bone marrow transplant. The worldwide market potential for Iomab-B is estimated at $4.1 billion. Alongside this development, Actinium is also in a Phase 1/2 trial with Actimab-A, a second-generation therapy for the treatment of acute myeloid leukemia (AML). The estimated global potential for an effective AML treatment is nearly $1 billion.

    With a market cap of less than $200 million, compared to peers like Isis Pharmaceuticals (NASDAQ: ISIS), which is also in Phase 3 trials targeting similar indications and trading for nearly $7 billion, Actinium represents a significantly undervalued situation.

    Under the guidance of an expert management team and world-class scientific advisory board, which includes luminaries from MD Anderson, Johns Hopkins, Fred Hutchinson Cancer Center, and Memorial Sloan-Kettering, Actinium is well-positioned to execute. Memorial Sloan-Kettering is the company's largest shareholder and owns 20% of Actinium.

    CNS Response (OTCQB: CNSO)

    CNS Response is a neuroscience company focused on improving the quality of treatment for patients with brain disorders by providing objective information to prescribers. The company's PEER Report service is a cloud-based platform which allows physicians to exchange outcome data referenced to their patients' unique neurophysiology. This outcome data is used to better treat patients by reducing trial and error prescriptions, improving treatment efficacy and reducing negative side effects.

    CNS Response's platform has been validated by multiple peer-reviewed studies. Over time, the value of the company's platform will increase as more data endpoints lead to even greater specificity of results through a valuable network effect.

    An ongoing clinical trial with the US military has produced promising early results, which were highlighted during recent congressional testimony in support of the Clay Hunt Suicide Prevention for American Veterans Act (HR 5059), which passed the House in early December. The US military alone could represent a $540 million customer for CNS Response.

    In addition to its success with its US military clinical trial, CNS Response is seeing growing consumer adoption of its PEER technology, driven by an algorithm-based rich marketing automation program that promises predictable and scalable growth.

    Much like the company's PEER technology, its consumer marketing program leverages big data to improve performance. CNS Response is able to geographically target the right patients with the right attributes across a variety of online media platforms. This gives the consumer the opportunity to lead the adoption process through an intuitive web-based format allowing the company to reduce its marketing costs by as much as 80%, all while seeing higher closing ratios for new patient acquisitions.

    Be sure to visit to learn more about these and other exciting small-cap opportunities. At we offer full research profiles and exclusive executive interviews with some of the best names in small-cap stocks. If you're not already a member, sign up for RedChip's free weekly newsletter to ensure you stay current on the latest developments in the RedChip Nation.

    Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit

    Dec 16 12:31 PM | Link | Comment!
  • Leading HR Firm To Begin Pilot Program For ZIVO Bioscience's WellMetris Test

    Wellness testing is the latest countermeasure taken by insurers, employers and governments to keep a lid on exploding healthcare costs. By screening individuals for metabolic efficiency and overall health, those responsible for paying or administering health-related claims get a better handle on risk management and intervention.

    Trion Solutions, a leading human resources firm with over 1,000 clients and 15,000 employees, recognizes the importance of screening and recently committed to a pilot program to evaluate the health and economic benefits offered by WellMetris' proprietary Wellness Profile testing platform. WellMetris is a subsidiary of ZIVO Bioscience (OTCQB: ZIVO).

    The pilot program with Trion will start with 500 employees. Based on attainment of the price/performance metrics projected by WellMetris, Trion Solutions plans to underwrite a program to test a much larger group of eligible individuals and dependents.

    Craig A. Vanderburg, Chief Operating Officer of Trion Solutions, stated, "We are excited about using the WellMetris test to establish a baseline of health for our employees. It's a potential breakthrough that can provide valuable information to the individuals who take the test and the wellness consultants or early intervention providers tasked with improving employee health."

    The company's proprietary health and wellness test assesses metabolic status to help focus early intervention and preventative medicine, driving ROI for employers, insurers, and governments. The test is designed to uncover pre-conditions favorable to the onset of disease or impairment usually brought on by unhealthy or stressful lifestyle choices, focusing primarily on the "The Big Four" -- stroke, heart disease, diabetes and cancer.

    WellMetris is a breakthrough product, converting expensive lab tests for stress and inflammation into a simple, convenient test that can be performed at the office, on the shop floor or in a retail setting, as well as at clinics and health centers. No other company offers an easy-to-use, cost-effective, and portable wellness test system.

    Beyond the blockbuster potential of its human wellness products, ZIVO is also addressing another sizeable market opportunity: animal health.

    ZIVO is currently in the concluding stages of its pilot study with Zoetis (NYSE: ZTS), a Pfizer spinoff and the world's largest animal health company. The study is testing a solution to the inflammatory condition known as bovine mastitis, which costs the US dairy industry an estimated $3 billion per year. Globally, this condition is considered the number one health problem affecting the world's 244 million dairy cows. Results from the study are expected in the fourth quarter and option negotiations should begin shortly after.

    Since January of 2012, ZIVO has engaged in an aggressive research and validation program to prove the efficacy of its natural products in various applications, from its human wellness tests to bovine udder health and canine joint health.

    To better reflect this direction, the company recently changed its name to ZIVO Bioscience. The name and related symbol change represent a milestone in the company's two-plus year transition to a biotech business model where the majority of its revenues will likely be derived from licensing and partnership agreements.

    "The name change is both symbolic and practical," stated CEO Andrew Dahl. "It signals a clear break with the past and reflects the effort expended over the last 2-1/2 years in transforming the company into a viable R&D enterprise with significant potential in both nutritional and medical applications."

    In addition to its treatment for bovine mastitis, ZIVO is making significant progress in its validation studies for its dietary supplement application for the $300 million canine joint health market. With current studies concluding in late November, ZIVO is expected to enter the next phase of efficacy studies for this application by year end.

    As several studies exit their pilot phases, ZIVO is well positioned to partner with global brand names to take its products forward, generating royalty advances and option fee revenue from its near-term licensing opportunities.

    ZIVO is yet another example of the great small-cap opportunities we find for you as a member of the RedChip Nation. With two potential blockbuster products addressing $1+ billion market opportunities, we believe ZIVO represents an extremely compelling story with big upside in the near-term.

    Visit to learn more about this exciting small-cap stock, and be sure to watch our latest interview with CEO Andrew Dahl. You can also sign up for to receive email alerts and our upcoming research profile on ZIVO.

    Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit

    Tags: ZIVO
    Dec 11 12:04 PM | Link | Comment!
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