Just reported in formal 8k filing by PURE:
The owner of Subway, the largest food chain in the world, through Franchise Brands, LLC, just invested $4million in PURE Bioscience as a strategic investment. This strongly implies that some very large restaurant chains will soon start buying “SDC” in very large quantities. Do you think it might be the 45,000 restaurant Subway?
Several other major QSR’s are likely to follow soon.
PURE is very STRONG BUY because they have almost $8 million in cash, the biggest breakthrough in food safety in decades using biotechnology, and revenues that are about to explode
Sentiment: Strong Buy
Type “MicroCapReview” into your browser to learn why Millennium HealthCare (MHCC) stock price is about to explode and keep going for years. Click on “Read the latest issue and turn to page 22.
Sentiment: Strong Buy
And it looks like Corium/AGRX has had about 20 lawsuits of their own, Fentanyl-related I assume. And then there's the multiple manufacturing issues.......
This company appeared on my screens today so I did some research including looking at the 10Q. The company IPOd 3 months ago. AGRX has a once-a-week birth control patch that is in a phase 3 trial. This product, Twirla, should be approved in the next 2 years and would result in sales of 200-400mil/year. This stock could easily double from it's current $130 million dollar market cap. Guru Investor Chuck Royce recently took a large position along with several other hedge fund investors according to the SEC filings (13d). There are lots of risks associated with this company. It has no current product and there is no guarantee it will receive approval or that it's product will capture much market share. There are several other companies with similar products. Twirla is unique in it's low dosing of hormones. This appears significant since other products have been pulled due to higher hormone levels causing problems. Twirla seems a good prospect. The 10Q states it might be available commercially by the end of 2016. Because of the size of this company, it would not take a large market share of the birth control patch market to make a significant price change in the stock. I think it's worth a small bet.
Promising IPOs like this one are automatically bought by various types of investment companies. The problem is we have been in a bull market for quite a while. We are at the point where many smaller stocks don’t have any room to run. Only a few of the very large caps are moving up. So what happens is the investment companies drop new and non-performing stocks and put money into those stocks that are performing well, thus driving the large cap stocks up even farther. At some point the house of cards falls and we start all over again.
Nobody knows when the correction will come, but enough people are pulling out of the market to effect the DOW and S&P 500. I suspect that the NASDAQ is up because tech stocks are reporting for the next few weeks. But what's going to support the market when earning season ends?
Here is a short list of events that can cause market volatility: The government suggested that they will end QE3 in October, any day Argentina may default on its international loans, the market in over extended, there is trouble in Israel AND Russia. There is likely going to be a correction, but who knows when or what the final straw will be to break the camel’s back.
You have two options. Sell now and sit on the sidelines, or ride it out. If it’s any consolation, I also believe this company will make money, eventually, but not this year, not until they have an approved product to sell. In the meantime we wait and watch events unfold.