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From My UPDATED Best Idea list for 2010

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

Dr. John L. Faessel


Commentary and Insights

Star Scientific Inc. (CIGX) $1.85 Nasdaq Market-cap $222 million

(CIGX) is one of the top (if not "the" top) stock speculations I have ever come across. The “connect the dots” rational could make this stock one for the ages. The story goes (and I'm a believer because I have tried the CigRx™ product) - that the company is now marketing CigRx™ in Richmond, Va. their first test city, an over-the-counter (no prescription required), Tic-Tac type non-nicotine nutraceutical, made from natural ingredients that temporarily reduces the urge to smoke. Imagine the market. And you can purchase it very simply online; Tobacco use will kill 6.5 million people in 2010 from cancer, heart disease, emphysema and other diseases. Gross cigarette sales are $325 billion a year. That's just part of the story; There are other looming, potentially hugely market moving dimensions to (CIGX) that are percolating and ready to pop, like the Roskamp studies related to a potential Alzheimer cure / treatment, plus the mega lawsuit against tobacco giant RJ Reynolds, that is being orchestrated by the powerful law firm Sidley and Austin LLP (a major patent law impresario that has lost just a couple of patent suits over their long history) that alone drove the stock to just below $6 last year. Now add in the possibility of a buyout. Big Pharma is always in search of significant new revenue sources and with the fact that smoking issues are so huge worldwide, wouldn't some enterprising Pharma company become involved with either a type of licensing agreement or even a buyout? Perhaps, Big Tobacco may even have an interest. Institutional ownership continues to grow. Currently 81 institutions hold 24% of the shares. And of note, (CIGX) has $20.6 million in cash.  

To watch the CigRx™ infomercial:


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Disclosure: Long CIGX