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Microcap Pipe Dreams or Previews in Reality?

Today’s investment world is clad with people of all different styles, but they all have one thing in common; a desire for profits.  It doesn’t matter if you are a seasoned, multi-millionaire day trading shares of Berkshire Hathaway or the newest investor looking to start with five hundred dollars, the individuals do not enter into this aspect of finance with the goal of losing money.  One of the most common phrases asked of anyone who makes any mention of being involved in the stock market is known globally and it goes a little something like this:  “Got any hot tips?” The big boys of the macro cap markets and blue chip companies tend to keep a very tight lip for obvious reasons with miniscule amounts of information shared with everyday citizens.  So where do many people look to find the next big thing?  Many look to the microcap world to discover the “diamond in the rough”, the “hidden gem” or “the next Microsoft.” You can take your pick of any number of phrased given to describe a small, developmental company that is sliding under everyone’s radar while making big strides in their chosen industry.  In the world of Over The Counter Bulletin Board (OTCBB) stocks, there is much speculation and rumors that are passed daily through one “hot tip” after another, so finding the companies worthy of your attention is indeed a challenge.  Which companies are truly previews in reality as they research, develop and market their products and not just the vision of a dreamer? 

Well, I have to believe that a person must start with some basic facts to increase their odds of success.  I tell people to think about what they would look for if they were starting a company of their own.  Would they want to enter into an industry with billions of dollars available for revenue potential?  How about management?  They must also consider their product.  Is it unique, but something the majority of the world would desire?  In order for a company to be strong and have a serious shot at longevity and growth potential, these are a few of the important factors that must be accounted for.  When you find a company that answers these questions with solid answers, you have quite possibly gotten a glimpse of a preview in reality.

Cellceutix Corporation (OTCBB:  CTIX), a developmental biotechnology company based in Beverly, MA is a company that has answered the required questions and passed all initial tests with flying colors.  For management, Cellceutix was co-founded by a 26-year veteran of Pfizer, Inc., Mr. George Evans.  Mr. Evans was General Counsel of Pfizer's worldwide prescription drug unit (accounting for about 96% of Pfizer’s revenues) and integral in the development and marketing of many of Pfizer’s pharmaceutical products before leaving to start Cellceutix with Dr. Krishna Menon.  Dr. Menon’s list of biotechnology accolades throughout his almost 40 years in the field of research is impressive, to say the least, including being a President’s Recognition Award recipient while at Eli Lilly. With an extensive background in oncology research, Dr. Menon has been a lead researcher in several drugs that have gone on to produce billions of dollars in revenues for their respective companies.   

As far as products, Cellceutix owns the rights to 8 different compounds that they are developing to treat a variety of major diseases in their own, innovative manners.  Their flagship product, Kevetrin, has been shown with animal subjects to be effective in the treatment of cancer in subjects that have proven to be resistant to standard, proven cancer treatments on the market today.  Cellceutix has already completed its pre-IND meeting with the FDA and is in the process of filing an IND for Phase I studies for Kevetrin. Tomorrow, per the Cellceutix website (, a press release will be issued detailing the successes that they are having with another major compound in their pipeline, KM-391 in the treatment of autism.  KM-391 is completely unique in that it merely doesn’t treat the behavior that results from autism; it is being developed to treat the disease at its root core. 

The final piece of any successful company is responsible finances.  Mr. Leo Ehrlich, CPA, handles this aspect of the business for Cellceutix.  With a BBA from Bernard Baruch College of the City University of New York and over 25 years experience at a variety of upper-level management positions with several companies, Mr. Ehrlich has been with Cellceutix since its inception and more than adequately fills this crucial position.

Based on the requirements for getting a glimpse of reality, rather than a microcap pipe dream, Cellceutix is certainly a company worth keeping an eye and as this company is flying under the radar, but stands a great chance and making a large impact on a multi-billion dollar industry.

From a technical standpoint, CTIX still trades at a very low average daily volume.  This is not without cause, however.  Cellceutix is very “low key” about publicity for starters.  The CTIX share structure does not have a very large float with only approximately 40 million free-trading shares out of the 92 million currently issued and outstanding.  The float is held almost exclusively by a tight group of investors that are very optimistic of the future of Cellceutix (per Mr. Ehrlich).  CTIX has been in a channel closing between .30 and .50 on low volume for about 5 months at this point, but I would suspect it may be seeing some more trading as their products keep working their way through the pipeline.

The author holds no shares of CTIX and has not been compensated to write this article at the time of penning.

Disclosure: No Positions