Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

UPDATE - STAR SCIENTIFIC (STSI) ― TIME TO BUY

|Includes: Rock Creek Pharmaceuticals, Inc. (RCPI)

9/13/2012

Dr. John L. Faessel

ON THE MARKET

Commentary and Insights

UPDATE - STAR SCIENTIFIC (STSI)TIME TO BUY

Market cap 7/5/2012 was $ 737 million

Market cap 9/13/2012 is $537 million

Shares of Star Scientific are now on sale as the market cap (value of the company) is off $200 million or about 27%.

Let's first note that during this time frame of (STSI)'s decline (from $5.05 to $3.68) institutional ownership has grown over 3 million shares. Institutional ownership (including greater that 10% holders) - see detail below - is now at a record high of greater than 41.68 million shares.

We should also note that the 'reported' short interest is up 1.24 million shares, (not counting the 'Naked Shorts' that could be 2 or 3 times that amount.)

So while all 'things' for Star are advancing at a rate and trajectory as never before the shares decline 27%. - It's a 'buy' the shares if you've been waiting - or and add too - IMHO...

Because:

To begin; sales of Anatabloc™ are arcing ever higher as numerous themes worth perhaps $ billions to are due to erupt shortly. Several human study results are imminent within days (Johns Hopkins & Flint); a Reynolds settlement plus US Supreme court results are likewise expected within weeks; the sale or spin-off of Star's tobacco biz, a license deal to a major tobacco co, a new managed care interest, Big Pharma license deals... All of this is on the front burner! And of special note; on Monday Star expanded their product line with the launch of Anatabloc Cream. I expect news flow, testimonials and research to follow shortly.

In Sum

Stars science builds and management continues to execute, always seemingly from an ever more substantial and sound platform. Anatabloc™ is well on the way to becoming a household word as radio and TV ads now are becoming commonplace and the news of the wonders of Anatabloc™ are spreading.

* STSI - Institutional Ownership - 9/12/2012

Ownership Analysis

# of Holders

Shares

Total Shares Held:

116

28,840,979

New Positions:

22

687,265

Increased Positions:

66

5,162,978

Decreased Positions:

28

1,574,582

Holders With Activity:

94

6,737,560

Sold Out Positions:

13

471,725

STSI Institutional Ownership - 8/10/2012

Ownership Analysis

# of Holders

Shares

Total Shares Held:

112

25,745,437

New Positions:

23

1,162,584

Increased Positions:

51

2,331,303

Decreased Positions:

35

2,444,441

Holders With Activity:

86

4,775,744

Sold Out Positions:

10

513,719

TRADEWINDS MASTER FUND (BVI) LTD.

Beneficial Owner (10% + owner)

 

16,606,520 shares

STSI - Short interest - 9/12 / 2012

Settlement Date

Short Interest

Avg Daily Share Volume

Days To Cover

8/31/2012

25,083,466

1,334,802

18.791900

8/15/2012

24,851,338

1,628,612

15.259213

7/31/2012

23,839,224

1,285,669

18.542272

For more on Star's Anatabloc™ science see a recent report of mine; Hypothesis no longer - New Peer Review Credibility from Johns Hopkins Could Drive Star Scientific Shares Higher see: https://seekingalpha.com/article/749001-new-peer-review-credibility-from-johns-hopkins-could-drive-star-scientific-shares-higher

Also NEW (8/1/2012) see a terrific 13 page research report by Gilford Securities on (STSI) / CIGX by market maven Otis Bradley: http://www.wirelessledger.com/Gilford_initiates_CIGX_08_01_2012.pdf

Disclosure: I am long (STSI) formerly (CIGX). I have bought shares the open market and have no affiliation with the company.