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I cover junior mining and technology/bio tech stocks with a focus on the TSX and TSX-V.
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  • Pulse Beverage | Building Real Sales

    A year ago Vineet Dutta wrote a Seeking Alpha Focus piece on Pulse Beverage (OTC:OTCQX:PLSB). It was a positive piece written near the very apex of Pulse's stock price rise. Pulse briefly saw $1.45 a share before beginning a long fall to .40 at the end of 2013.

    2014 has brought some life back into the stock. Closing the year at .40 it has risen as high as .80 in 2014 and currently trades at around .60.

    Vineet Dutta's assessment of Pulse was not so much wrong as premature. The point was for Pulse to get distribution for its line of natural and health drinks. Which is what Pulse spent 2013 actually doing. Here's a stack of press release headlines....See if you can spot a trend.

    Pulse Sells Out First Shipment of Natural Cabana(NYSE:R) Coconut Water

    Pulse Introduces '100 Percent Natural' Cabana(R) Coconut Water

    Pulse's Natural Cabana Lemonade Now Available at Kroger Supermarkets

    Pulse Expands 7-Eleven Presence With 160 Stores in Texas

    Pulse Beverage Signs Agreements With Foodtown and United Grocers

    Pulse Beverage Reports 30 Percent Increase in Third-Quarter Revenues Over Prior Year

    Pulse Beverage Signs Agreement With H-E-B

    Pulse Beverage Signs Agreement With Albertsons

    Pulse Beverage Expands Distribution Agreement With Geyser Beverage Company

    Pulse Beverage Signs Agreement With Save Mart Supermarkets

    Pulse Beverage Signs Agreement With Kmart

    Pulse Beverage Unveils Digital Sales Stand

    Pulse Secures Sacramento Distributor for Its Brands and Adds Two Chain Stores

    Pulse's Natural Cabana(R) Lemonade to Be Carried in Sprouts Farmers Market

    Pulse Provides Update on Case Sales and Secured Listings for Cabana(NYSE:TM)

    PULSE(R) Lists With Nature's Best and Debuts in Key Southern California Market

    To sell product your product has to be in the stores. With agreement after agreement Pulse is doing the long march toward US nation-wide distribution. In a press release in June 2013 Probe stated:

    Pulse is ahead of its sales objectives of 20,000 chain store listings by the end of 2013.

    Has the company made that objective?

    With deals like Kroger (1233 stores) or Albertsons (380 stores) reaching the 20,000 store goal is realistic and may already have happened.

    Rolling out new products like Cabana Coconut Water at 1000 locations in California, is a great way to build the brand.

    In its last quarterly report filed November 14, 2013 Pulse stated,

    During the three months ended September 30, 2013 grocery and convenience chain store listings for Natural Cabana Lemonade increased by 3,000 listings to more than 17,000.

    In the highly competitive beverage business a company which can gain the listings it plans to get is one to watch.

    All the more so as the management team includes many of the people who drove Clearly Canadian from no sales to 4.8 million cases in less than three years.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Feb 20 9:16 PM | Link | Comment!
  • Allana Potash Forms Strategic Alliance With Israel Chemicals

    Fertilizer is a growth industry world wide. No more so than in Africa where modern, fertilizer intensive farming is rapidly growing.

    Allana Potash (OTCPK:ALLRF) has a huge potash deposit in Ethiopia with access to the Indian Ocean. It has just concluded a strategic alliance with the world's sixth largest potash producer, Israel Chemicals Limited.

    The deal combines an equity participation, a take or pay off take agreement for up to 1 million tons per annum and technical assistance.

    Read more about the deal at

    A Major Partner For Allana PotashCEO Farhad Abasov on the ICL Strategic Alliance

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Feb 20 5:33 PM | Link | Comment!
  • Theralase: Big Pharma Bait

    I was looking at the 1Q 2014 Investor Presentation Materials of Canadian anti-cancer drug developer Theralase Technologies Inc.(Theralase (OTCPK:TLTFF))In those materials there is a list of eight deals where relatively small biotech companies connected with Big Pharma for commercialization and co-development of their discoveries.

    The deals ranged in value from 466 million plus royalties to 1 billion plus royalties. I wanted to do a quick check to see what the effect on the share price was. A number of the companies involved in the deals were private however I was able to get data for two deals:

    Genentech /Seattle Genetics (NASDAQ:SGEN) Aug 2010

    12 million upfront and milestone payment of up to 900 million dollars

    pre-deal price $9.12 post deal $11.69 current $50.00


    Novartis (NYSE:NVS)/Immunogen (NASDAQ:IMGN) Oct 2010

    45 million with milestone payments of up to $200 million per target reached.

    Pre-deal price $5.16 post deal $9.94 current $16.05

    There are, of course, dozens of caveats, but what these deals suggest is that once Big Pharma has done its due diligence and put skin in the game a relatively small, innovative company is likely to see its shares rise in the short term and, perhaps, more importantly, soar over the next couple of years.

    At the time of deals Seattle Genetics had 100 million shares outstanding, Immunogen had just under 60 million.

    The investment opportunity these deals underline is as much about timing as it is about deal value.

    A company can take several years to come to the place where a way forward to human trials of a particular drug or agent appears imminent.

    Theralase is right on the edge.

    February 13, 2014 Theralase put out a press release. In it appears this quote,

    Dr. Michael Jewett, Clinical Principal Scientific Investigator at Princess Margaret Cancer Centre, University Health Network and University of Toronto stated that, "I am extremely encouraged by the results of this scientific work and the implications that it may have in the destruction of bladder Transitional Cell Carcinoma, as the bladder is traditionally known as a very low oxygen environment. There has not been a new drug approved for bladder cancer since 1998 and I am looking forward to working with the Theralase team to initiate a Phase 1 / 2 clinical trial in 1Q2015."

    Bladder cancer is the fifth most common cancer in America and its treatment costs over 3 billion dollars a year.

    With Theralase shares trading between .40-.50 the opportunity to acquire Theralase just before it is on Big Pharma's radar looks attractive. Volume is picking up and the company seems to have realized that a steady news flow is needed to bring the stock to the market's attention.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Feb 18 4:34 PM | Link | Comment!
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